Blue Bird Corporation Delivers Record Fiscal 2026 Second Quarter Results, Raises Full-Year Outlook
Blue Bird Corporation has reported another strong quarter for fiscal 2026, highlighting record profitability, growing demand for electric school buses, and continued momentum in expanding its alternative-powered vehicle portfolio. The company announced its fiscal 2026 second quarter financial results, emphasizing operational improvements, strategic growth initiatives, and increased long-term profitability targets.
The manufacturer, widely recognized as a leader in electric and low-emission school buses, delivered record second-quarter adjusted EBITDA performance while continuing to navigate industry challenges such as tariffs, supply chain pressures, and fluctuating production schedules. Blue Bird executives also underscored the importance of the company’s recent acquisition of Micro Bird, which is expected to significantly strengthen its market position in both the school bus and shuttle bus sectors.
Record Quarterly Performance Highlights Strong Operational Execution
Blue Bird President and CEO John Wyskiel praised the company’s workforce for producing another quarter of strong financial execution and operational efficiency.
According to Wyskiel, the company achieved an adjusted EBITDA of approximately $51 million during the second quarter of fiscal 2026, representing an adjusted EBITDA margin of roughly 14%. The performance marked the strongest second-quarter adjusted EBITDA result in Blue Bird’s history.
The CEO noted that Blue Bird’s ability to exceed expectations stemmed from improved operational discipline, effective tariff management, and continued expansion in alternative-fuel and electric-powered school buses. He emphasized that the company’s strategy continues to gain traction despite broader industry uncertainties.
Blue Bird also continued to accelerate its presence in the electric vehicle segment during the quarter. The company delivered 201 electric-powered buses during the reporting period and ended the quarter with more than 900 electric buses in its firm order backlog. This backlog provides strong support for the company’s EV sales goals for the remainder of fiscal 2026.
Management believes the sustained demand for electric school buses reflects increasing school district adoption of zero-emission transportation solutions, along with government incentives and environmental policy initiatives supporting clean transportation.
Micro Bird Acquisition Expands Market Opportunities
Another major highlight during the quarter was the completion of Blue Bird’s acquisition of the remaining ownership stake in Micro Bird. The transaction officially closed effective April 1, 2026, and company executives indicated that integration efforts are progressing smoothly.
The acquisition significantly broadens Blue Bird’s commercial vehicle portfolio and strengthens its position across multiple transportation segments. In addition to traditional school buses, the company now has expanded exposure to the Buy America-compliant shuttle bus market, which management views as a major long-term growth opportunity.
Executives stated that combining Blue Bird’s established manufacturing expertise with Micro Bird’s capabilities creates one of the industry’s most comprehensive bus portfolios. The expanded lineup is expected to improve cross-selling opportunities while allowing the company to address a wider range of customer needs in both public and private transportation markets.
The company also expects the acquisition to contribute meaningfully to profitability and earnings growth in the second half of fiscal 2026 and beyond.
Company Raises Fiscal 2026 Guidance
Following the strong first-half performance and completion of the Micro Bird acquisition, Blue Bird raised its financial guidance for fiscal 2026.
Chief Financial Officer Razvan Radulescu said the company’s business remains in a strong position and continues to outperform previously communicated expectations.
Blue Bird now expects full-year fiscal 2026 net revenue to reach approximately $1.75 billion, while adjusted EBITDA guidance has been increased to approximately $245 million.
The company also raised its longer-term profitability outlook, targeting more than $2.5 billion in annual revenue alongside adjusted EBITDA exceeding $375 million. Management believes achieving an adjusted EBITDA margin above 15% is attainable as operational efficiencies improve and the company expands further into higher-margin vehicle categories.
Executives emphasized that Blue Bird remains focused on disciplined profitable growth while investing in electric mobility, alternative fuels, and broader transportation solutions.
Second Quarter Net Sales Slightly Lower Amid Fewer Production Days
Blue Bird reported second-quarter fiscal 2026 net sales of $352.6 million, representing a modest decline of $6.2 million, or 1.7%, compared with $358.9 million during the same quarter last year.
The company attributed the slight decline primarily to a reduction in production days during the quarter. Production days fell by approximately 6.7% year-over-year due to the timing of holidays and related plant shutdowns within the manufacturing calendar.
As a result, Blue Bird produced and delivered fewer buses during the quarter, which directly impacted unit sales volumes.
However, the impact of lower production volume was partially offset by favorable customer and product mix changes, along with cumulative pricing increases implemented over recent quarters. These pricing adjustments were designed in part to offset rising procurement costs tied to tariffs affecting imported inventory beginning in the latter half of fiscal 2025 and continuing into fiscal 2026.
The company also experienced growth in its parts business, which helped cushion the decline in overall vehicle sales.
Bus Sales Reflect Pricing Strength Despite Lower Unit Volume
Bus sales declined by approximately $7.6 million, or 2.3%, during the second quarter. The decrease was largely due to a 6.4% reduction in unit bookings.
Blue Bird booked 2,148 units during the quarter compared with 2,295 units during the same period in fiscal 2025.
Despite the lower unit volume, average sales price per unit increased by 4.4% year-over-year. Management attributed the higher pricing to improved customer and product mix, as well as pricing actions taken to recover higher inventory and procurement costs.
The pricing strength demonstrates Blue Bird’s ability to maintain strong demand and protect margins even in a dynamic economic environment characterized by supply chain cost pressures and tariff-related challenges.
Parts Business Continues Steady Growth
Blue Bird’s parts segment continued to perform well during the quarter.
Parts sales increased by approximately $1.4 million, or 5.4%, compared with the prior-year quarter. The company credited the growth to a combination of higher pricing, improved fulfillment volumes, and product mix variations across sales channels.
The expanding parts business remains strategically important because it provides recurring revenue opportunities and typically generates attractive margins relative to new vehicle sales.
As Blue Bird’s installed base of electric and alternative-powered buses grows, the company could potentially benefit from increasing aftermarket service and replacement part demand in future years.
Gross Profit Remains Strong
Second-quarter gross profit totaled $70.6 million, representing only a slight decline of approximately $0.2 million from the prior-year period.
While lower sales volumes negatively affected revenue, the company benefited from corresponding reductions in cost of goods sold, which declined by roughly $6 million. Blue Bird’s ability to maintain relatively stable gross profit despite lower production volumes highlights the effectiveness of its pricing strategy and operational controls.
Management’s focus on cost management, manufacturing efficiency, and disciplined pricing continues to support overall profitability.
Net Income Improves Significantly
Blue Bird reported net income of $29.3 million during the second quarter, an increase of $3.3 million compared with the same quarter last year.
The improvement was driven largely by lower selling, general, and administrative expenses. In the second quarter of fiscal 2025, the company recorded significant share-based compensation expenses related to the retirement of its former CEO. No comparable expense occurred during the latest quarter.
The reduction in SG&A expenses more than offset acquisition-related costs associated with the Micro Bird transaction. During the second quarter of fiscal 2026, Blue Bird incurred approximately $2.7 million in pretax costs tied to acquiring the remaining ownership interest in Micro Bird.
Despite those transaction expenses, profitability improved meaningfully on both a reported and adjusted basis.
Adjusted Net Income and EBITDA Continue Climbing
Adjusted net income for the second quarter reached $32.5 million, representing a $1 million increase from the prior-year period.
Meanwhile, adjusted EBITDA climbed to $50.8 million, up $1.6 million year-over-year. Management said the increase was driven primarily by stronger earnings contributions from Micro Bird as well as continued operational performance improvements.
The company’s adjusted EBITDA margin performance reflects its ongoing ability to manage inflationary pressures while benefiting from strategic pricing actions and product mix optimization.
Year-to-Date Results Show Continued Momentum
For the first six months of fiscal 2026, Blue Bird generated net sales of $685.7 million, representing an increase of $13 million, or 1.9%, compared with the same period last year.
The year-to-date improvement was primarily driven by higher average bus pricing, favorable customer mix, and continued pricing adjustments designed to offset rising inventory costs.
However, similar to the second quarter, lower production days partially limited overall volume growth. Production days declined approximately 4.3% year-over-year during the six-month period due to holiday timing and scheduled plant shutdowns.
Bus sales increased by $11.9 million during the first half of the year despite a 3.2% decline in unit bookings. Blue Bird booked 4,283 units during the six-month period compared with 4,425 units in the prior-year period.
Average sales price per bus increased approximately 5.3%, highlighting the company’s strong pricing environment and product mix improvements.
First-Half Profitability Expands
Gross profit for the first six months of fiscal 2026 reached $141.9 million, an increase of $10.7 million from the prior-year period.
Net income totaled $60.1 million during the six months ended March 28, 2026, representing a year-over-year increase of $5.3 million.
The company noted that higher gross profit drove much of the earnings improvement, though this was partially offset by increased acquisition-related expenses and lower other income.
During fiscal 2025, Blue Bird benefited from approximately $2.6 million in income related to the sale of state emissions credits. No similar benefit was recorded during fiscal 2026.
Adjusted net income for the first half rose to $65 million, while adjusted EBITDA increased to $100.9 million, up $5.9 million year-over-year.
The company credited the increase primarily to improved gross profit performance and stronger contributions from Micro Bird operations.
Long-Term Growth Strategy Focused on Electrification and Margin Expansion
Blue Bird’s latest results reinforce management’s confidence in the company’s long-term strategic direction.
Executives remain focused on expanding leadership in electric and low-emission transportation while simultaneously improving profitability and broadening the company’s commercial vehicle footprint.
The combination of strong EV demand, disciplined pricing, operational efficiencies, and strategic acquisitions positions Blue Bird for continued growth in the coming years.
With more than 900 electric buses currently in backlog, rising profitability targets, and expanded market opportunities through Micro Bird, Blue Bird appears well-positioned to capitalize on growing demand for clean and efficient transportation solutions across North America.
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