Blue Bird (BLBD) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY2026 results with net sales of $517.2M, up 29.9% year-over-year, driven by the full acquisition of Micro Bird, which contributed $122.9M in sales and $7.4M in net income, and strong alternative power sales.

• GAAP net income for Q3 FY2026 was $185.3M, up from $36.5M, primarily due to a $160.5M non-taxable gain from remeasuring the previously held Micro Bird equity interest.

• Adjusted EBITDA for Q3 FY2026 was $71.4M (13.8% margin), up $13M year-over-year, with $8M from Micro Bird consolidation.

• Announced major strategic moves: collaboration with Ford for the Class 5/6 commercial chassis market, including the purchase of Detroit Chassis LLC's Detroit Assembly Plant.

• Maintained leadership in alternative powertrains, especially EV and propane, with disciplined pricing and strong operational execution.

Financial highlights

• Q3 FY2026 revenue reached $517.2M, up $119M year-over-year, with Micro Bird contributing $122.9M; Adjusted EBITDA was $71.4M, up $13M, and Adjusted net income was $45M, up $6.3M.

• Gross profit for Q3 FY2026 was $103.4M, up $17.4M year-over-year, mainly from Micro Bird's $17.3M contribution.

• Year-to-date revenue grew 12.3% to $1.2B, with Adjusted EBITDA of $172.3M and free cash flow of $100.2M.

• Liquidity at quarter-end was $259M, with $116.8M in cash and $141.7M available under the revolving credit facility.

• Q3 diluted EPS was $5.27; adjusted diluted EPS was $1.28.

Outlook and guidance

• FY2026 guidance raised: net revenue expected at $1.74B–$1.76B and Adjusted EBITDA at $245M–$250M; Adjusted free cash flow forecasted at $125M–$135M.

• Long-term profit outlook raised to Adjusted EBITDA of $500M+ (15%+ margin) on $3.3B revenue by 2030+, reflecting the Ford collaboration and Detroit Chassis acquisition.

• Medium-term target: $275M Adjusted EBITDA (13.5% margin); long-term target: $325M–$375M+ Adjusted EBITDA (14–15%+ margin).

• Management expects continued strong demand, with a backlog of 3,570 Type C/D units and 1,290 Type A/commercial units as of June 27, 2026.

• The company anticipates positive impacts from government grants for alternative powered buses in the remainder of fiscal 2026 and beyond.