Release of its fiscal 2024 second-quarter financial results spurred a remarkable 13.19% surge in Blue Bird Corporation (NASDAQ: BLBD) stock price during Wednesday’s after-market session, reaching $42.49. This notable increase followed a modest 1.16% uptick in the regular trading session, closing at $37.54.
Strong Quarter Performance And Market Outlook
Blue Bird’s (BLBD) order backlog of approximately 5,900 units shows that the company is in strong demand from the market, even if its unit sales were somewhat lower than the year before. In the quarter, the company’s sales broke all previous records with $346 million, a 15% rise. Remarkably, adjusted EBITDA increased by $25 million from the prior year to an all-time high of $46 million, or a 13% margin.
By delivering a record number of electric-powered buses throughout the quarter, Blue Bird strengthened its dominance in the market for alternatively powered school buses. Furthermore, by the end of the quarter, the business had about 500 orders for electric school buses in its backlog.
Expansion In EV Sector Collaborative Ventures
Blue Bird experienced significant growth in electric vehicle (EV) orders, particularly from the EPA’s Clean School Bus Program, which allocated nearly $1 billion in funding during Phase 1 of its $5 billion initiative in 2023.
Anticipating further EV orders, Blue Bird eagerly awaits Phase 2 (A and B) of the program, which promises at least $1.5 billion in grant and rebate funding for electric school buses over the next year. The company remains proactive in collaborating with its dealers and school districts to capitalize on these opportunities.
Fulfilment Through Extended Collaboration
Moreover, Blue Bird solidified its commitment to clean school bus transportation by extending its exclusive collaboration with Ford Component Sales and ROUSH CleanTech until 2030. This strategic agreement reinforces Blue Bird’s leadership in low- and zero-emission student transportation.
Initiating their partnership in 2012, Blue Bird, Ford, and ROUSH CleanTech have collectively deployed over 40,000 alternative-fuel powered school buses, illustrating their commitment to sustainable transportation solutions.
