Blue Bird’s Q2 Earnings Call: Our Top 5 Analyst Questions

August 13, 2025 at 01:42 AM EDT

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Blue Bird’s second quarter saw a significant market response, as strong sales volumes and disciplined operational execution outpaced analyst expectations. Management highlighted that improved product mix, stable bus pricing, and sustained leadership in alternative power vehicles—especially propane and electric models—were primary contributors. CEO John Wyskiel credited the company’s focus on manufacturing efficiency and cost control for the margin performance, noting, “We are less sensitive than in the past to product mix...our gross margins are roughly the same percentage across all powertrain types.” The company also benefited from targeted price increases that more than offset material and labor cost pressures.

Is now the time to buy BLBD? Find out in our full research report (it’s free).

Blue Bird (BLBD) Q2 CY2025 Highlights:

Revenue: $398 million vs analyst estimates of $377.4 million (19.4% year-on-year growth, 5.5% beat)
Adjusted EPS: $1.19 vs analyst estimates of $0.98 (20.9% beat)
Adjusted EBITDA: $58.48 million vs analyst estimates of $51.05 million (14.7% margin, 14.5% beat)
The company reconfirmed its revenue guidance for the full year of $1.45 billion at the midpoint
EBITDA guidance for the full year is $210 million at the midpoint, above analyst estimates of $198 million
Operating Margin: 12.6%, in line with the same quarter last year
Sales Volumes rose 14.7% year on year (0.7% in the same quarter last year)
Market Capitalization: $1.79 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Blue Bird’s Q2 Earnings Call

Michael Shlisky (D.A. Davidson) asked about the temporary drop in backlog and seasonality. CEO John Wyskiel explained that order delays were mostly due to tariff uncertainty, which he compared to “passengers buckling up during turbulence,” and stated he expects order rates to recover as pricing stabilizes.
Gregory Robert Lewis (BTIG) inquired about visibility into future EV sales and the impact of state-level incentives. CFO Razvan Radulescu shared that a current backlog of 500 EV units, plus ongoing EPA and state programs, gives confidence for next year’s sales, especially with discrete fleet opportunities in the pipeline.
Eric Stine (Craig-Hallum) questioned whether school districts are substituting propane for EVs due to funding uncertainty. Radulescu clarified there is little direct substitution, as propane is selected for lowest cost of ownership, while EV demand remains subsidy-driven.
Christopher Alan Pierce (Needham) probed whether Blue Bird’s pricing strategy was defensive or offensive in the context of industry trends. Radulescu said recent actions provide price stability for customers through March and keep Blue Bird competitive while protecting margins.
Craig Irwin (ROTH Capital Partners) asked about the long-term revenue and margin contribution from new chassis and shuttle bus products. Radulescu emphasized that these segments are expected to deliver profitable growth, supported by strong initial customer interest and the company’s ability to scale production as demand develops.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be tracking (1) the impact of automation and manufacturing upgrades on operating margins, (2) renewed order activity as price certainty offsets tariff-driven delays, and (3) the scale-up of EV and propane bus sales supported by state and federal incentive programs. Progress on the Micro Bird plant’s ramp-up and the launch of new chassis offerings will also serve as important indicators of Blue Bird’s execution and market positioning.

Blue Bird currently trades at $56.49, up from $44.19 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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Blue Bird’s Q2 Earnings Call: Our Top 5 Analyst Questions

Blue Bird (BLBD) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Blue Bird’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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