Blue Bird Q3 adjusted EPS misses estimates on lower unit sales

Blue Bird

05/08/2026 21:12

Overview
U.S. school bus maker's fiscal Q3 net sales grew 30% yr/yr, driven by Micro Bird acquisition
Adjusted EPS for fiscal Q3 missed analyst expectations
Company raised FY2026 adjusted EBITDA guidance, citing strong integration and Ford collaboration

Outlook
Blue Bird raises FY2026 adj EBITDA guidance to ~$247 mln
Company sees FY2026 net revenue at ~$1.75 bln
Blue Bird raises long-term profit outlook to adj EBITDA of $500+ mln on $3.3 bln revenue by 2030+

Result Drivers
MICRO BIRD ACQUISITION - Acquisition contributed $122.9 mln in net sales and $17.3 mln in gross profit in Q3
LEGACY UNIT SALES DECLINE - 7.2% drop in legacy Blue Bird unit sales due to timing and customer mix, with some revenue deferred to Q4
PRICE INCREASES AND MIX - Higher average sales price per unit and product mix changes offset lower unit sales and higher costs from tariffs
ONE-TIME GAIN - Net income boosted by $160.5 mln gain from remeasuring Micro Bird equity investment after acquisition

Company press release: ID:nBw78Mjbba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Miss
$1.28
$1.30 (6 Analysts)
Q3 EPS
 
$5.27
 
Q3 Adjusted Net Income
 
$45 mln
 
Q3 Net Income
 
$185.30 mln
 
Q3 Adjusted EBITDA
 
$71.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Blue Bird Corporation is $83.50, about 7.3% above its August 4 closing price of $77.83
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)