Blue Bird Shares Dip Despite Record-Breaking Quarterly Performance

Blue Bird US0953061068

The electric school bus manufacturer Blue Bird has kicked off its 2026 fiscal year with unprecedented financial results, surpassing market expectations. However, this strong operational performance was met with a paradoxical decline in its share price during after-hours trading.

For the first quarter, which concluded on December 27, 2025, Blue Bird reported robust growth. Revenue reached $333.1 million, marking a 6.1% increase compared to the same period last year. Profitability metrics were particularly strong, with adjusted earnings per share coming in at $1.00, significantly above the consensus analyst estimate of $0.80.

The company's GAAP net income was $30.8 million, or $0.94 per diluted share. A favorable product mix and strategic pricing actions helped offset rising procurement costs, leading to a record adjusted EBITDA of $50.1 million. This figure represents a healthy margin of 15.0% for a starting quarter.

Electric Vehicle Momentum Accelerates

A key driver of the quarter's success was the continued surge in demand for alternative-powered vehicles. New orders skyrocketed by 45% year-over-year, expanding the total order backlog to approximately 3,400 units. The transition to zero-emission vehicles is central to this growth.

During the quarter, Blue Bird delivered 121 electric buses. Its dedicated EV order backlog now stands at over 850 units, putting the company on track to meet its electric vehicle sales targets for the remainder of the fiscal year. Altogether, vehicles with alternative powertrains—including both electric and propane models—accounted for about 48% of units sold in the period.

Upgraded Outlook for Fiscal 2026

Buoyed by this powerful start, management has raised its full-year guidance. The forecast for adjusted EBITDA has been increased to $225 million. The revenue outlook for fiscal 2026 has been reaffirmed at approximately $1.5 billion.

The company's long-term strategic goals remain unchanged: achieving $2 billion in annual revenue with an adjusted EBITDA margin of at least 16%. Priorities for the coming quarters include advancing assembly automation and expanding its commercial chassis business.

Market Reaction Contrasts Fundamentals

Despite these positive results and the upgraded forecast, Blue Bird's stock experienced volatility following the earnings release yesterday evening. Shares declined 5.24% in after-market trading to $52.44. Even with this pullback, the equity maintains a year-to-date gain of nearly six percent, highlighting the disconnect between the quarter's operational achievements and short-term market sentiment.