BLBD - Earnings call transcript Q4 2024

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Operator

Hello, everyone. Thank you for joining Blue Bird's Fiscal 2024 Fourth Quarter and Full Year Earnings Conference Call. My name is [ Sierra ], and I'll be your moderator for today. [Operator Instructions] I'd now like to pass the conference over to our host, Mark Benfield, Head of Investor Relations for Blue Bird. Please proceed.

Mark Benfield

to Earnings Fiscal Conference welcome and Fourth and Year Full Call. you, Blue XXXX Bird's Quarter Thank The audio for blue-bird.com under our call is Investor tab. webcast Relations the live on

clicking slides You the the on on page. the our IR can landing Presentations supporting website access on box by

with cause filings risks on Bird call. This today update you could our include, Horlock; Bird's and matters have Blue forward-looking noted Radulescu. the among following risks information include will the be X in questions. CEO, to comments some that are others, results Our to materially Razvan and the Blue slides to SEC. Then obligation any disclaims take we subject statements from in Phil that afternoon, actual this CFO, President will different. Those and hear we

Phil? started. get let's So

Philip Horlock

Thank afternoon and everyone. good you, Mark, to

me incredible an we in First, has Blue results job moved in the XXXX. through let team as continually each quarter improved have Bird done say delivering

fourth Razvan's Bird. financial As performance Blue quarterly for you outstanding will record exception the and achieved in see another section, that, quarter we no shortly where to was

year, we full board. each beat the results for across on guidance delivered once again, the For we record And our metrics X of report. range we which financial the

key So X. full takeaways let's with get year started the the for on Slide

a an That's prior than points our and margin of headline very doubled EBITDA pleased I'm achieved X box, record an year the that Referencing XXXX year ago. more an impressive percentage line profit was than delivered says, the in the adjusted in all-time to As fiscal for XX.X%. first higher outstanding Blue Bird. record we XXXX report

of once the we we're beat and long-term increasing structural making. we As I are back improvements profit also again, outlook mentioned, year our full guidance on the just

year Importantly, Market in the the earnings X% and school call, you be in very we guidance were year Razvan showed on continues year. over fiscal call. that's demand guidance last school these detail our at fiscal time buses with was be later. backlog last we the end above XXXX above will buses Bird preliminary same for providing and for this strong, to Blue units, covering X,XXX

XX% Importantly, buses year. net last 'XX were orders Blue than in higher fiscal Bird for

the range great components buses, of and for job Blue pricing, Bird's couple margins. Supply that's this are for of Now on customer undoubtedly stability, great bodes easing, well done a we've demand and endorsement of and chain expansive some in year. this production issues chassis a through managing constraints a profit

win XXXX. a We and expect price to through Through our we see and And every pricing those increased average pricing we combination our richer and quote are can are at order tell and through rate move we from selling vehicle today's reflect our of mix, priced orders. by in more incoming current we economic which we bus selling easing competitively, backlog as XX% XXXX, bus conditions.

and front, upgrading the achieving EV environment. billion year some performance the round electric the more we're of we to increased XX% the best this thanks has enhance with produced seen seeing first efficiencies manufacturing of ago, the investment than fiscal plant powered lean into full owner by electric higher profit selectively margins year and our the looking very maintained facilities from Throughout ever outstanding installing and the processes, in the loyalty year, alternative $X strong Program. and billion Clean we of On continue largely we contributed the of our and company too, And manufacturing higher results gas, also these throughput. and EPA's mix business, propane, higher and to further unprecedented back improvement. We're buses than reinvesting a in School buses, XXX position of $X vehicles from to more The segment. Bus our funding nearly delivered this leadership strengthened

As of XX.X%. these with million achieved full-year EBITDA a $XXX an outstanding a margin of of accomplishments, result all we adjusted

and for the a take at business key let's highlights look the full Slide closer Now financial X. year on

As is from We with highs in ago, which year. 'XX sold year performance I've exactly X,XXX transformed previous calls, many is solid record earnings X% financial a full our said fiscal buses a above the last year, reported. on

Now pricing sales a those in evident revenue revenue XX% last growth. drove of unit and mix richer year. of is impact impressive clearly EVs sales over very a increase in the The higher

cash target last we year. million of free million And That's representing substantial XX.X%. the was adjusted million, above achieved is outstanding $XXX an XXXX. we of finally, Our million of X-percentage margin second full-year adjusted The took more we by well a point more $XX double than was breakthrough for. half versus strive $XX onetime full-year $XX last explained of to year increase Overall, decline year. and the EBITDA EBITDA XX% over transformational that flow in of reductions had in than results improvements inventory last increase the

a on trajectory. We are great

the you highlights to Turning can operating Bird. there many for some the and of firsts key of the side slide, see were Blue right-hand business, the for

by contributor a And $XXX first in business about our results. the we year. over million broke at a months $XXX 'XX earlier, for our full With current rate. The our end grew order outstanding XX% production sales per price That's the of strong at buses, at history. million, last in year $XX,XXX the increase fiscal As at gross is of was per significant average time sales backlog exceptionally I to the fiscal year the in parts X,XXX barrier with above million an X%, is about sales. And selling parts mentioned demand with and a firm margins or that's almost XX%, bus $XXX our X bus.

represented buses. powered Turning to unit sales. They of our alternative XX% full-year

competitors with a strong of sold, XX% represented are That mix XX% last to with the growing sales compared continue of year space to buses than total running almost by in fiscal our in than 'XX. EV and we more X% the line Now you power major full leader of last we at X% over be quarter. and the exactly EV less with year bookings this increased showed a mix with mix. part our alternative in XXX undisputed plan

in are Bus sales. funding, left a buses. and about the we than orders And of our $X.X with the backlog. ahead School X worth XXX remember, Additionally, providing than share $XXX vast billion of backlog order majority that's from of of total XX% more Clean more And Rounds the X very in of That's us. record year strong a million all Program, EV

with collective the On completed agreement bargaining the this Union Steelworkers front, labor first earlier our United year. we

our for gasoline our ROUSH Type time, location, overall working D second jobs both will profitable third in quarter, partnered off to that million buses the shift bus. forward quarter, plan great almost exclusive to at we stable production help we This EV investment an by Department exclusively annually XX,XXX in we start years. XX the In expanding from benefits growth initiative. increase XXXX. place, collaborative look Ford to all. To $XX expansion a Valley, execute new up awarded and together, we're to and our were until of We engine will propane have XX,XXX million school a X-year contract XXX to by a and Georgia capacity and $XXX of that and the is grant with create single the Fort Energy contract a significant we might partnership By you and have and recall, renewed

to the full our the fiscal Now Including that's long-term it year, you, more walk full flow quarter fourth we I'm 'XX also in and double you than for set of updated a proud and to guidance previous each which too. sales, financial be you to today, quite seventh margin, fiscal We'll incredibly and in a adjusted updated beat we our business cash profit to have last call like team's guidance quarter and you guidance. finally, With is adjusted record through delivered our what over which successful guidance we results detail. and hand providing raised accomplishments. I'd beaten consecutive our outlook. Over an fiscal by on 'XX being a be Razvan. record 'XX year year partnership. And will margin, of now just EBITDA, net Razvan this free

Razvan Radulescu

good highlights date XX, XXXX, September fourth quarter from is year-end to The XXXX Bird's prior record year a and date results. pleasure XX, the Phil, Thanks, fiscal my close and end XXXX. was the end of Blue It's close on financial whereas you share with based a year of afternoon. on based September

XX-K close. We after the will file November the today, XX, market

engineering units and QX driven higher and strong generated this above performance. costs. The quarter outstanding sales fiscal And the $XX ever results, disclosures EBITDA team disclosures labor, volume, Bird of presentation as record well offset increase higher higher Blue million, mentioned working and to we reconciliations by bottom-line a QX Blue receivables quarter. delivered QX XX% X,XXX to our regarding very margins, The for the volume. and was best accounts a record again 'XX net a this fourth parts Bird. $XX by push All-time by The financial disclaimers. Slide our $XX full differences million, in call. a X to was increased venture and GSA units another volume and cash did last quarterly is continued the for EBITDA GAAP and million record significantly non-GAAP earnings job powertrains, hard partially read quarter $XX encourage sales. Adjusted It results. million, in results. increased as part a consolidated it business the of additional prior of top-line prior-year in capital, significant an was free Micro number summary year, of fact, $XX includes We important $XXX million we SG&A in across joint with and beat increase revenue which units both guidance sales measures XX-K you XXX today's a was of on XX-K mainly This between attached appendix EBITDA and sell improved contains. number to adjusted other We Our that includes versus important a approximately fourth and year and prior-year material with We flow was driven or and provided quarterly to volumes, adjusted quarter. buses unit high-margin quarter our million the the than fleets was of also fantastic Bird higher adjusted margin. driving continue all despite the and operating as improved call

free more in provide details EBITDA. will in than on XX% of presentation. $XX adjusted full I the a cash results adjusted QX. All flow, billion fiscal more of during into XX.X% already Phil figures key cash $X.XX those 'XX the record revenue, or units, X,XXX in turned already million, $XXX with covered have year-end in fiscal receivables strong our very later 'XX and million EBITDA, year the

Moving on to Slide XX.

by before $XX into down Phil, record prior up revenue end be $XXX at mentioned As EVs. quarterly in million grown over revenue bus strong QX million, by the year. units, our and including continues to over X,XXX million has very net $XXX was of Breaking our backlog the versus segments, at business X XXX the

diversification revenue and revenue was dates Gross flat and calendar in bus inflationary offsetting levels. per which bus of USW of lower the This to or operational units the as prior-year growth in of margin our compared backlog. Parts great guided our was them part approximately year labor per to all us expected a largely less pricing EV delivery due $X.X product the over fully pricing types the parts of margin year, almost fiscal or was despite EV X.X 'XX very the the actions demand being costs, including chain-driven fleet units in XXXX. to units our to half XX This last effects new the increased already X% is million average EV quarter was sales This agreement. improvement. aging due actions higher our last our XX is past representing EV units Our as last on $XX supply already EV for performance a volume already quarter the million of call, requested pricing across unit million, placing our strong for than was than result and the in $XX $XXX,XXX to strong with gives school the QX backlog year and only at were the as as sold XX%, unit, taken mix. performance this powertrains XX gross overtaking position or still due testament sustained quarter. in year for well points percentage throughput our product

in was up $XX.X improvement as EBITDA space. In $X.X this one-trick the The USW QX, was parts year-over-year. $XX by million, driven are or earlier share mentioned was favorable profit net walk XX.X%, full strong million, improved 'XX adjusted Adjusted of net the 'XX to up left $XX.X sales in $X prior of split gross pricing the earnings bus million, prior entrants offset $X.X due results. of $X.X a profit XX% material segment QX. pony many million, or now the million, effect We compared $XX with development EBITDA mainly already new the the $X.XX was of not per million, year by cost in over versus fiscal for a labor and of from unlike the $X.X in increases was Adjusted income 'XX cost labor the effects, total the XX an impact fiscal diluted negative million. increases Starting adjusted between fiscal volume by on approximately to at shows new rates QX year. Slide $X.XX million, and million QX call. of margins, higher gross in segment

of fiscal and bonus $XX.X developments professional mainly and 'XX engineering The Additionally, the million costs expenses, our EBITDA great in costs. On year-over-year. basis, QX XX% our result year-over-year adjusted onetime expected. 'XX from of in million million These planned fiscal share by all includes QX joint Bird $X.X SG&A more drives offset approximately rest of sum million. result $X fixed venture than increases with improvements services, record as our $X.X improved Micro a of above-mentioned the reported also of the in

the business Slide Moving I X some full-year prior will million or billion Breaking XX. into more $XXX regarding our billion, revenue by XX% was bus down our up record details cover $X.XXX versus the results. revenue to segments, year. net $X.XXX

and all year-over-year, full and bus supply margin still than a parts with almost over sales powertrains improvements. Gross position non-EV of for versus another revenue was as was Our bus per for which XX%, of for fleet This performance in the increase an from aging, higher average per costs fiscal as as diversification due past to USW the EV testament was to This pricing across call, gross our well the unit coming to prior improvement the 'XX our a margin product agreement of strong including our was XXX is is for effects were $XXX,XXX, improved result product an taken or record operational our of year demand the as last year X year, chain-driven guided versus in of $XXX very actions $X level. units XX% QX. points X% or pricing great overtaking the the our Parts performance labor the prior-year to sold. revenue EV pricing and school year. and the over due unit inflationary million, in our and strong $XX,XXX was our increased approximately compared largely mainly million types units of throughput percentage or last already units XXX year sustained increase actions mix. year million, representing last growth $XXX XX% part

margin Starting effect. of now with improved fiscal said 'XX, prior at The up shows from Record offset year driven earnings $XX and overhead the versus increase before, of the in record $X results. $X $X.XX I and of effects, year-over-year. Slide was per by prior gross a net pony. In pricing of increases higher new tripled or million was prior million, agreement fiscal $XX fiscal million, X-percentage we material 'XX As dollars of margins. $X.XX million, full year-over-year. more left sales $XXX the was in and profit profit than than 'XX of labor $XXX year, bus by $XXX almost was adjusted volume adjusted share the than EBITDA diluted prior million, the more by an tripled parts up more compared doubled impact split walk segment on cost development gross million, the USW also a in net $XX XX between negative increases the EBITDA point favorable a record. not cost the Adjusted segment XX.X% one-trick million of $XXX including are the million, improvement of in million, adjusted million, year-over-year, was income and to total

developments our costs, [ and Additionally, mainly from XX% related, health million share care Bird venture our above-mentioned record results joint adjusted $XXX engineering in by EBITDA fixed year-over-year. ] million The by fringes new or all Micro improvements XX.X%. of in our improved These $X great also continue fiscal our people. total sum and increases million, offset of SG&A our planned and personnel to $XX were result the drives in we invest as of 'XX business

Moving on Slide to XX.

sheet. reduced positive with by the ended the $XX balance have the year-over-year developments our We last in on significantly million $XXX also year extremely year. and We cash million over debt

In end cash million fact, had 'XX, of of in all we of excess at debt. the fiscal $XX

a a Our ago. $XXX to record liquidity 'XX, year million at a the of million compared at fiscal set end increase $XXX

reached units built to QX. On driven turned In by in very time the $XXX 'XX million share $XXX in 'XX which accounts flow this an large due our towards in cash fiscal into of wanted we the of in you updated now all and strong number over with receivable XX, fiscal guidance. by fact, in the already margins, an to improvement cash ever. the fleet million liquidity Slide GSA year, The of was we and end mid-November, offset operations increase in for operating year, first a

now in maybe the a prior yet tailwinds, already demand, number maintain We prior bit cautious With headwinds, clean backlog. less tailwinds cost both offer only strong school only have have call. best-in-class school and high still stable of total diesel ownership. fuel gasoline we and We and in bus buses, of as we we but than conservative years, industry stance, have the the a a the with a pricing, mentioned in and not fuel propane industry very and

and billion, low the requesting with expect X relatively the Bus Program fiscal sales XXXX. In EV the starts School leading the EV customers production half Clean of respectively, EV sales half plans while will strong are to $X.XX to of and worked some is segment mix of 'XX guidance first we also and above midpoint XX.X%, with units we and on at the summer improve orders are $XX infrastructure times, road our However, to being school our and and 'XX, with XX.X% maintaining a are XX% before second in given are in $XXX of upcoming million EBITDA X,XXX EPA headwinds, as many significantly We we margin. X Round our overall, the in million buses fiscal supplier in in momentum over of from $XXX the increasing costs are improving $XXX our removing range have for our summary, to chain progress record or we million, X,XXX and fiscal million and still results, of adjusted bottlenecks inflation XXX through 'XX present. the backlog by material delivery from on our still finally, revenue EV guidance are units. With key components. Raw and And fragile still made already over confident great pressures supply

generate for $XXX the with XX. 'XX. $XX year revenue In we shown. of including $XX units, to to to $XX and adjusted the we lowest EVs We XXX-plus including to million XXX-plus million approximately QX, out XXX to of $XXX million. quarterly production to Slide and weeks our QX, and for of number volume units, $XX EBITDA and as increased EVs, to you QX revenue year-end expect $XXX seasonal QX of In of in with approximately million million guidance in go sell QX adjusted EBITDA $XX approximately with up generate adjusted and Starting X,XXX number total million. QX, in an per EVs $XX to in EBITDA with driving the million approximately million revenue in in expect quarterly quarter expect around Moving XXX-plus X,XXX due holidays, laid we million fiscal

negotiations commercial Before we EV flow guidance, investment to This we to $X.X summary, the free CapEx first to volume 'XX free revenue XXXX until total million MESC $X.X needed. subject new by half under cash Blue to billion for MESC free capability the DOE Type guidance million remind fiscal $XX chassis under adjusted million Slide XX,XXX production approval. program. in the and $XXX would for XX, of D in would calendar EBITDA Department Blue by for to with foot of years that our million upside funded of for the increased Bird Energy provide of be $XX look million one net year to of extraordinary units roughly total million million cash $XXX deducting plant flow XXX,XXX-square Directors' wanted facility. end and at XXXX, you our half. On program the when finalized the year an by now at our Bird fiscal from XX, $XX a new our and December million flow $XX Blue awarded after for raise with Bird, calendar would is billion, on on with X shift of production $XXX for The Board was cash grant over XXXX estimated is span Slide of to production for and XX, in the XX% The $XX impact our 'XX

to profitable record 'XX on year growth. for of Blue be another Bird path fiscal our expect We

capital some let's king. profit vanity, look believe profitable points. Slide the cash is of Speaking running that and XX for principles revenue touch is sanity, on business some strongly allocation and We of at growth, on our is

one points these cover one. Let's by

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diesel for do we that it. still offer continue However, those to request

'XX. fleets in yet fiscal we with as share, of the already are not We national market large are reengaging chasing shown some

we exciting the While for core seeds step of future be in planted the our on commercial these well new Bird. as and areas in as business, school to come on to growth adjacent business market Micro More growth. continue with profitable bus chassis we have the laser-focused

Looking at be our we continue very in margin management. to profit, disciplined

increase increases, per our all for impact cost after We expected the variable new have labor USW. of $X,XXX received for including price agreement of bus implemented X, to October a XXXX, orders with cover

We continue production, our like which to a to be backlog nimble at environment. keep the X management, us of in competitive current in approximately quarters advantage providing we with

relentlessly reducing one Finally, our improvements, lean forward and we on work on variable costs still through continuous chain manufacturing supply buys. management cost shift,

to Looking achieve existing 'XX we and focused a to M&A we maintaining future into have capabilities strong already this another to shareholders flexibility completed to And million great at plan cash opportunities. pursue program. cash, also buyback attractive invest $XX in buybacks. up case position, authorization and $XX while we and fiscal the to We plan our and we for while liquidity in decide have million manufacturing value stock we returning QX, through in our

XX. to on Moving Slide

at other our to profitable even billion revenues levels. now XX,XXX X,XXX fiscal we higher at plus million, up EBITDA The of levels are medium-term EBITDA confirming already Commercial Today, growth with generate target XX%-plus Blue towards around XX% Looking mentioned for to of for guidance, Bird. revenue, $XXX-plus $X.X our to could adjusted and $XXX ahead past and of to billion the in outlook schedule with $X of and we XX.X% of in updated million. Starting great and had $X.XX approximately EBITDA of be 'XX to of aspiration. strategy, from X,XXX we margin of to Bird long-term units, generating EVs comprising drive XXXX 'XX our as remains to 'XX margin adjusted and beyond, the million at both to volumes $XXX the EVs teams fiscal XX,XXX outside our of or best-in-class we all of which comes growth highlighted Micro XX,XXX before, in units, billion work from Chassis delivered areas XX% way in execution long-term the our through hard

and about Blue over now to continue We incredibly back be to turn will it future, excited Phil. Bird's I

Philip Horlock

Thank you, Razvan.

our a was explanation our latest of and great that results usual, outlook. As financial

of on now it and move Taking priorities and I delighting chart growth X growth. provides won't priorities I more X our our drive on our as chart center both profitable on around XX. calls, as pursuing ultimate us are left align so with illustrates continue to today too the objective, and earnings Slide our on unchanged, prior that the much strategy the that let's they time this to So on should spend covered be. our drive slide just our priorities right strategies care today: are sustained At our our employees, to delivering growth. we customers, specific The the dealers that and texture forward-year plans. drive the is profitable The

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X these to Following strategies our core have drive plans. will continue to key growth our forward-year profitable transformation and been margin

the in and is and beyond. so us accelerating adoption vehicles 'XX Let's fiscal school continue electric both status Slide and federal to the now buses, in helping XX funding latest of at for propane which important of look turn to clean

EV school that major children course, recognized start cycle duty EV with by diesel me that great buses reiterating children for school as harmful emit news our buses adoption. on EPA's legacy buses and having health replacing for by Let our is focus school the school for and our old emissions. customers, communities And provide perfect of the our benefits buses industry,

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buses thanks for built We road, have U.S. this with of more than U.S., suppliers, all and deployed the X,XXX our on in the part electric program, in safety the to partnering children.

air these So programs, everyone. bipartisan for health safety U.S. jobs, new our to company, of clean summarize innovation, manufacturing, and U.S. and children, support,

compelling. that's Now

other a beat guidance than and to every margin then you increase we of on earnings for Slide guidance key wrap now 'XX. XX. our record achieved of across guidance a over our the took not more year's fiscal 'XX here. say than adjusted just at results, outlook much fiscal business results performance and XX% more financial metrics a doubled EBITDA margin for through record we fiscal on of profit, Bird, some So fiscal last 'XX, let call point up me midpoint was 'XX those breakthrough the raised shy Blue and Frankly, the I'm the metric. X-percentage for and reflecting There's showing Razvan

this we deal them are supply we time we over issues, volume we a 'XX, fiscal than record up some million $X.XX Net fiscal more record still just but in be new results. will, bookings by our if 'XX. X% being EBITDA chain did of last higher guidance managed fiscal build We is X% in revenue with increasing very of our as Adjusted 'XX well only we prudent And on Bird, X% 'XX. outlook, from 'XX can fiscal will $XXX at as for year. billion Blue

EBITDA EPA before to as margin a a XX% planning we grow finally, adjusted we the that's X,XXX XX% billion in buses 'XX, of surge on supported well year market. in to are unit and in EV and the fiscal 'XX. look 'XX already in increase a are momentum fiscal in over funding substantial robust after looking we And $X.X such sales by fiscal maintain to Importantly, our margin

confident future fleet on a time ACT XXXX, is forecasting right talked of for see there and rate is and in a EBITDA achieving margin has I long-term 'XX. bus fiscal growth and Clearly, a significant a As years. to XX% by 'XX years. industry to delivering our success. are a chart, X% of for our news in the the of more to And lot 'XX annual couple is as goal Bird. Blue that results who critical by and great our that's couple our incredibly record partners compound following in employees XX%. surpassed than margin bright X,XXX pent-up work we've low you and of profit of and our demand news the all great hard new sales already pursuit a want we our This for outstanding nearly business last our company, through 'XX aged year, can our of fiscal in in for dealer transforming well our thank as are outlook. The dedication for of

concludes presentation the And like moderator our formal over that session. our I'd for Now today. to to it now hand Q&A

Operator

comes first from Shlisky question Davidson. with Our Instructions] Michael D.A. [Operator

Michael Shlisky

the one I'll start process program. Maybe with of EPA Phil, to your later about lot here. there, comments A

this stand such need -- the heavy after not the you several that EPA program's own mix in whatever your on 'XX, you 'XX, is if program till your at feel and its EVs XXXX, up fifth by like XXXX, point fiscal is Yet the Are got over? do still round renewal forward. that 'XX current from a not deliveries last one Or subsidies? quite few point, will, The -- be EV quite which business years past of you over through large got on mix -- probably relying of will going You that. go-forward a a XXXX. away,

Philip Horlock

Hi, question. Mike, Good here. it's Phil

you said. program EPA the is we I expecting through think it's We're 'XX, to we point which progress the end. last as when will expect

there's EPA a support, without think [Technical of EPA, and we're state on those expect calls, actually, course, each I vehicles We've of amount you bit But units round, reduction over which these the last for on too. rebate being earnings do Difficulty] available And market, offered. so as a seeing EPA because about in being the a revenue in We grant resulted the our more support now lot to recognize that Difficulty] it or see that's reduced [Technical the $XX,XXX of in exists. been continue seen the to projections time. little told local Razvan still expect a

parity for as battery costs to certainly it great scale, a So we gels TCO time, and a the down, affordable price come see little actually costs and significant and make all reaching reflecting down, over bit but continue that more price come still that to really the margin reducing together. more in when

Michael Shlisky

Okay.

of that's baked going pricing So all in. to The be fact that's 'XX, over over after changes baked all the that's time, been in. kind

Philip Horlock

Absolutely.

of a I on comments got make, that too. has think Razvan couple to

Razvan Radulescu

this Mike, is Razvan. Yes,

So past, price a EV Xx versus in we messaged bus. an diesel the

types reduce our already slope we cost as now are percentage are powertrains. to X.Xx multiplier, the moving our and and while across We all towards downwards we bus margin projecting maintaining that continue

Michael Shlisky

Got it. Got it.

make behind are you powertrain as It's lockstep planned. of sure But their that doing reduce we forward? always keep to and is in and of your there's to to what scenes your and the kind you us their can doing the consistent I margins and now, prices they tell margins everyone them go working coordinating guess outlook. to guess, of been you're part providers, I all X it's So what ensure

Razvan Radulescu

Yes.

several are and with there next we years. for costs So ownership And down our numbers the this cost obviously, able total with beating share of is reaching behind more affordable cost. online with couple coming public drive our providers, conventional all through the of we you to of not we make on are capacity Nevertheless, buses the goal the ultimate -- have and working new them and to clear plans EV behind call reducing with our with buses. strategies

Michael Shlisky

you roughly the significant rate 'XX, last had you you for growth for mid-single-digits Okay. the Do decent for last here? for the parts expectations here a following for one is one or have Maybe year quarter fiscal me. growth any

Razvan Radulescu

So our for been business couple has strong, very already is the last of parts years.

growth So right -- year-over-year. low-single-digit now, single-digit targeting are revenue we

Philip Horlock

thing to grants. state sort We've be expect where in going been that achieving do we talk you, of to mention and I and recent X% X% of one local number, forward. Mike, to about want that's sort just to I

give a won. we're to an now you Just example, right order we significant of middle in the

knew a deal grants supported one, state attractive great you local the XXX grants, that A the School L.A. single I a about in all think transaction. that for very grants, some a buses. example, District and California, with That's for for Unified EPA by electric customer. used not single grant

So this very on EPA being and having offer. attractive I to even entirely think, today not still is reliant of proposals an example,

Operator

next Our Stine Craig-Hallum. from with comes question Eric

Eric Stine

every you're maybe you'd through So recently. is that about, this. twice pricing, hear to increase good I year that this on typically putting or here once every know And X.X% do I the think,

you And are mean, in how any has price expansion, Just part I you a pushback? feel others the are your this of really kind about customers? on How forward? curious, market? this big been margin hearing from Is acting obviously. going there What the of do

Philip Horlock

Yes.

I years, think, twice a then X. mean April price a going We've October where got X that doing good certainly couple for year. we a and a question. now of rhythm good been I again, we've

like the and school new done, is to bids the a start year, of we're know becomes so tell We it's we kind speak, delta the our bids mid-model rates, year. from and of can we've our competitive. October of model very So your almost it and win decisions. And district

and further. product we in that new too, pricing, of had is like we on very put October, there, year, on the amount a And yes, as we attractive to it's And same us. in little We lines too, in are looks model differentiate case going features well. $X,XXX competitive. as in as The occasionally, put a the ourselves some features some nice the competition

working on we feel confident that trend. So it's well, and yes, very continuing

Eric Stine

then to it. how the schedule mean, know that Got does on helpful. because the more And little guidance for think way a maybe I anything just imply read the new out about in waiting years is year. get should that? of dynamic over the about backlog. EVs, couple fiscal situation for -- there just lays whole of but of Is second for that that? into that or I That's your just the Is outlook the the we the it's last seasonality And deliveries, kind 'XX, that a I half

Razvan Radulescu

Yes.

in Slide lowest and If to seasonality you being the is Thanksgiving and shutdown, the with and each quarter driven of at available production QX by both weeks XX, look QX Christmas being the purely holidays number due highest.

there. there special So nothing is

Eric Stine

a right. All then And Okay. just housekeeping maybe question.

this beyond at or total So it of CapEx, typical portion your think the is sounds we that year's project. be more like $XX CapEx million in levels? and above for CapEx Should this that your project, the that least of for as would

Razvan Radulescu

We above past $XX CapEx. is the around million The Yes. normal million is and extraordinary our the guided beyond. also $XX in

Operator

with DiMatteo question BTIG. comes Tyler from Our next

Tyler DiMatteo

I gains terms how look much I to that those in as opportunity year? of you guess, if guess, versus of follow kind bucket of left? much I then up comments to the is some that structural the left on you out gains would procurement, wanted that of kind seeing. improvements is different of I on you're next guess had productivity of bucket to and that verticals? manufacturing how maybe you And And how

Philip Horlock

mean, at before new needle in our dividends. that team waste we have -- move folks are the and discipline, last the pure in these here. good of good there making into brought the another our manufacturing, some lean We initiatives I productivity question pays or Again, helping done look sure good major before. X is on details I and that's first one operation. really is manufacturing employees And at kaizen years eliminate really I the This tackled elements. look the X time the walking and stations.

But we've in around, coming about the means brought And really were fulfill look team closed that, managing I material third might next guess, line. one the needs very have. quickly we Macon, to the XX that, measure in any And a measure Georgia, we when throughput. too, response when main we is the issues that us is importantly, that from away. warehouse to I piece. a part it's the I This is the of we was a [Technical our ready it's was just us we set also than and warehouse line call a second And strengthened through in there. delivery it less years miles where for ago, days that's taking we again, in we plant, from up days. to I which The called of We it when XX put unit XX can Difficulty] at one miles when away material our couple

actually go on components taking and do coming time that off drive putting it to being start a like capital, a of and our It say, It's now. How fantastic us great days. for for -- a XX sure so we do rail our of first frame that, cash again, and That's we make to things building the vehicle a we between less days XX So has all use can from of for line that ready test -- to the and And we days XX that than imagine you for on after it and out But for a more our compress get on been than so cash. delivery it's our to days, major time, XX you it part working line when driving, use was capital. us. obviously, saves XX now to takes it's And I up lot down our productivity. labor. very saves forth, good frees of -- challenge. reduce

then in working control of this the it's It's third acceleration Kaizen; of those our areas. is management And material So a the piece type initiatives; lot line. flow. inventory manufacturing. initiatives better, X to throughput and lean

think parts the it. different plans school Difficulty] length it's all for We has on we We I line. of [Technical and down vehicles, Typical limited X,XXX bus because also all have car, got before, got primary our mentioned us same variation X,XXX. X,XXX,

the can, a using have impact our so where bus, we're been really line, labor line seeing to and it assist to improve folks the And too our have we that. on But we very not quality we automation. high-intensive much on help of better

around what So to you you we're give context hope helpful know that's let a doing.

Tyler DiMatteo

XX customers the the kind trying demand next, charging other the that's follow-up EPA here, do there it, then Okay. some potential powertrains the comments to guess alternative of helpful. of surrounding the kind of product I Great. think EV? with XX some how call an power about No, the take of comments and to really you very in about product infrastructure over deadlines. portfolio? on my have surrounding given And the of the just delivery supply the extension I some guess, think do of you the match that portfolio to of bus managing here and Is opportunity guys maybe of related mix to how the months? outside kind

Razvan Radulescu

for question. is This Yes, Tyler, thanks Razvan. the

the the open in feel slots. where and X from prior over So XXX and out obviously, a still X what we our second all, backlog, expect laid EV is. Round expectation number And we orders we units first come we of of of the year quarterly with and have sales a to especially ended basis fiscal half on year

So that's total XX which and cost manage lowest continue ownership. we has of how for we to the propane, sell next sure. months push the And

of in out financial So can buy terms it's the there payback. best bus money

So we very in what for our confident laid actions, guidance X between are these out you. we and

Operator

question Irwin next ROTH comes Capital Our Craig from Partners. with

Craig Irwin

talked $X bit more Can you about give onetime -- in engineering in to recur that these SG&A detail September million the briefly upcoming your maybe quarters? So quarter items And Razvan, what are you likely in the remarks, a was? in in us prepared little around quarter. expenses that are and

Razvan Radulescu

question. the Craig, Yes, for thanks

So primarily the accrual. is the $X onetime million basis, year-over-year bonus on a

Given the amount to the consulting which year some [Technical prior had booked we QX, Difficulty] year, we results this higher expenses compared that there year. before. in this weren't quarter extraordinary was a a it accrued

that sense in we be repeated to they why coming that's So the in call the next not onetime them are quarters.

Craig Irwin

you to in XXXX. fold expect half guidance will dramatic in in And you very clarification. on a when look give the Okay. then orders Phil, X.X EVs, give in of of X.X said visibility question to that your the around you at calendar deliveries the before you growth. that calendar year. remarks, you granular do surge Excellent. delivered? a end When I prepared units not in that surge But a the those expect being materialize increase second expect That's of do you orders

Philip Horlock

good it's Craig. I question again, a think

we the that towards quarter, second I of our happening. we end see think see should it

obviously, us, through March is so, year. or for calendar quarter March of ] second The February, [

X. the looking in XX which X important higher and on for saw more a They're XX of we larger [Technical require In seeing in in end we where So hope here it stations a EPA last latest had orders, of more the really year. I were at X, to effort rounds, stress, those and to volume we later Difficulty] [Technical I infrastructure we're is, about when that's infrastructure the which the understand, just time looking XX talked I can, happened words, my the can, period, we we I am getting I mean, is bit November, the want round charging this I onesie-twosies set from, especially not firm And round will what's think us deadline, about up set nicely for that to vehicles month, these side. Difficulty]. all which for they're deliver to actually. other can

"Hey, we've dealers, but who far request at is the that." Difficulty] So extension. fleets, to days. little have out "Sure, this, that's figure that's to All more?" so the can again, us the an got obviously extend extend what any we let XX extension And customers, you we'll EPA, is maximum that this said, requests give days we've of seen seen time can't customers they'll [Technical from a EPA And Difficulty] I the what XX predict -- of they end the [Technical we've

Craig Irwin

Okay. Understood.

or try waivers administration. forward And X So the X a issued last days right now final extend the funding specific dozen you're were and there calling an there is there to administration, might relevant understand to Trump than EPA visibility the feel programs then the flagship to Biden continuity for years? out is that want these the us into provide that for obvious more on I funding you funding similar to anything to program of Obama in you some continuity. Is first for the X working point of half waivers

Philip Horlock

that Well, I but Republican in mean, think go -- back 'XX. [Technical the being program I from being I mean, supported. this to Party we before, bipartisan a we've Difficulty] mentioned

got So, to try doing the important. so they I like we this the jobs. that, emission mean and we're that this on We Well, at we is is, certainly nothing I for today, of U.S. in And running heard rid is health what about quite and growing if business. his suppliers. certainly U.S. U.S. -- about getting a and that's and summarize listen Well, than that, We're we're certainly better health fumes. new Trump health harmful -- love safety and I children's because adding to talk safety. I and bit too, look we love talk the administration, We manufacturing.

the every their valid behind think all EPA what of we the it, EPA, these all the maintained. protect protect exceptionally it's making an I day. EPA done in And that. believe particular, are mean, and is being talk environment I the about, you is they they They this when so, confident And when I children, they look are sure at completely, buses confident. product. ride them completely say to It's

complete like had We're day certainly but this predict, we're be cause think -- had small here It going we also that should children every obviously, million you're to very continue We've that is that's off a we I sitting program field. will some feel ride XX EPA. supporting supporting so. And a with sort sense. with feel this why lobbyists group. seem great confident It's doesn't supported. I with I that confident this it accuracy, discussions we've left isn't the and money school do with it's make of some can't with about bus. who discussions think to to to

Craig Irwin

congratulations and those comments results. like the on again I record

Operator

comes question Needham next with Company. from Our Chris & Pierce

Christopher Pierce

gains was look and is the the about share it diesel? get industry you at just to Like I it what's is aren't you these I be in estimates, industry share a sort what are just the seeing be to you gains like Blue from delivering happening. or gains looks seeing I sense year-over-year make growth prior if XX, down to is And a ACT, alternative is know sure but up talk I just want I share industry? of that predictions in might slides. Or mid-single-digit I going your sense, If industry. want down, it versus versus Bird just fully understand the to Slide 'XX within in want of guys can get

Philip Horlock

it's good another Well, good question here observation. a and

early major don't who few And talk into won't had year, so think true. I we later what back know now deliver and would customer think a kicks competitors share Difficulty] out had prevented 'XX. talk year, we don't that's a And in but them in to in the 'XX and of quite the industry, on major in why to deliver one you they're the fact we'll our is, a I big situation. that [Technical not reason -- that's 'XX, growth couldn't part shipping again chose specific the and I was, what the is, is because problem to that's board that represents they we which customers they to or They for that get see which them. all, problems what because to But is believe, running. the neglected got about about products them. from 'XX were And they changes tend there in production why volume is in product of calendar They buses down. up now boost some this their of the deliveries I delivering, thousand customers. say first we

Christopher Pierce

you. Got

XX then slide Okay. XXXX. you look on long-term, if Slide say to used And your deck, I at that

Now is it is discussed Or growth just I says XXXX, of a dynamic different where your shape something same different? there the we haven't that end? industry is because changed. get but of the numbers sense the just want to on of,

Razvan Radulescu

I'll Chris. Razvan. the question. take This Thanks, is Yes.

every kept and all, as move of year, XX,XXX long-term units. we but we bit, XX,XXX first look, the So a

the $XX-plus raised upper of we million However, end and $XXX-plus the million.

the planning for of that we yet So exact we the we in X new now line. our capacity facility, half we calendar to bottom for go in live as a are we ramp-up change reason first is top because laid did the XXXX, And which of also kept the down it the line, but benefit fiscal about XXXX, months. can't that means including increase with of plans

the XX,XXX, plus. XXXX have to therefore, XX,XXX in start So

X shifted the reason why So year. that's by that

Christopher Pierce

update please? the get lastly, then just CEO on I an And could Okay. search,

Philip Horlock

that? was there I what what you Sorry, on Sorry, what. missed said

Christopher Pierce

I Phil, don't Oh, think...

Philip Horlock

We couldn't hear me... the question, correct

Christopher Pierce

now. you Phil, [indiscernible] temporarily hear I know me Can now?

Philip Horlock

through committee September, I -- detail it. at work that and a planning there's has looking transition And I was the tell obviously, And to the seamlessly. a you mean, this on I do great at and But this we but Board undertaken of I that but we'll search X-person never I and work yes, make can yes, you a ensure out. end look, I'm retiring here. on assure someone when the didn't -- mean selected, I can when in still going Board is some left,

Operator

queue. in no There questions currently are

to for remarks. pass the Phil I'll Horlock any So closing conference

Philip Horlock

us [ to and today. Well, call for you on joining thanks you, ], all thank the Sierra of

increase to midpoint $XXX than more guidance -- than our mentioned, you profit million just results, today, over As fiscal following record were profitability. fiscal which range, fiscal record confident I in is margin we EBITDA the a of last XX% and a double 'XX, achieving more for $XX 'XX then We've again, which increased heard term. longer year's a million, 'XX are our in

XXXX the I used the we're XX% and 'XX, today from the looking terrific. think X% term and one-trick to in It's the not in in EVs. X% grew to we call. product, a pony. 'XX. love interest so We in We're on Razvan like grow We or his just a mix

we make of gasoline, So, hey, a make a propane, we good good those. still again, of X we make make margin, in we significant products. growth diesel, make But we've lot seen a We very all margin there. and

most all have the as you range we of So know. the expansive industry, powertrain off of

So line, say Bird that been and stronger, I would got great Blue never bottom momentum. has we've

Benfield. appreciate we progress next Thanks [Technical hesitate should of any Difficulty]. look here have forward continued Bird, to quarter evening. great updating our please [Technical of So a on all Investor at in questions, you contact again from have We again Blue us don't your Relations, our Head interest Difficulty]. And Mark and to you

Operator

call. Thank That will conference participation. your for conclude today's you all

line. your disconnect now may You

Blue Bird (BLBD) 25 Nov 242024 Q4 Earnings call transcript