BLBD - Earnings call transcript Q1 2025

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Operator

Hello, everyone. Thank you for attending Today's Blue Bird Fiscal 2025 First Quarter Earnings Conference call. My name is Sierra, and I will be your moderator for today. [Operator Instructions] I would now like to pass the conference over to our host, Mark Benfield, Head of Investor Relations with Blue Bird. Please proceed.

Mark Benfield

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

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

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

let's started. So Phil? get

Philip Horlock

good our slowed from and results our you be I'm very tell everyone. share team shortly. details It's in pleased XXXX doing quarter. you to has financial the Razvan to the and the take afternoon quarter EBITDA first momentum financial great to here adjusted our of a Blue margins first last that and will Mark, year to Bird down near record job not fiscal with for fiscal our delivering through fantastic Thanks, you XXXX. with of results at all, in

X. So let Slide the me on get started quarter with for the key first takeaways

XXXX, achieved which says, the headline of has we in quarterly of days near-record impressive is fewest particularly year. profits first as fiscal quarter the any As working the the in quarter it

business little year the that full beat to in executive and the maintaining guidance impact of guidance, later. our a orders. President's that's shown on box, More and we despite come the QX As first on our are

units buses X,XXX overall focuses year the continues school business. This first the the across that healthy from which well strong, result to a at stability, of of look making almost deliver demand and are laid is really school QX, rate. priced in see profit higher again engine for the Blue significant buses about Market model, we than backlog very on our a years our the combustion production. win we out and ago, plan were production for every entire continuing of on and X couple improvements was as prices pricing, for to terrific a it this ago Bird be As at margins. of bodes competitively, end we Bus bid and representing at we results quarter, months can driver

time same a ago. our minutes, EV will deadline, EPA higher prior of School surge order in earnings and X talked billion where and toward I deadline and our federally-funded in as the $X meet XXX expected the the allowing year rounds that being cover orders, that's orders sales orders substantial submitted than the will recall record I calls, that the These to of propane-powered spike QX today. 'XX stand a the Program. for at EV a at XXXX, funding unit on buses. X end EV end subsequently and You Well, at almost December above of and XXXX, despite EVs, a electric backlog rounds backlog of EV to in extensions end for with In Bus the we fiscal XX% the Clean few XX% standing of fiscal saw a represent were

processes, by held for installing which selectively and we continue of sell to in manufacturing higher seen, have this the upgrading throughput. lean vehicles to our a exciting the company business, for to employees. This maintain efficiencies undisputed of continue position X XX working and differentiated We strong into is years. the facilities, We're the environment ever than reinvesting developing segment, in performance years. more investment hit next alternative-powered also as the the our back in with will and leader we market and has mix increased resulting manufacturing new products And the X too, plant some that best enhance

margin these As we've all margin an a adjusted result record, accomplishments, with $X our adjusted of result first-quarter of an profitability second-highest the EBITDA last was year's million, just XX%. first-quarter of EBITDA with and $XX achieved, ever below exceptional QX that million

executive first orders after Now, XX, are and exception. businesses no President monitoring Trump to responding have all virtually industries since January issued and quarter, the we been and by the

funding certainly let's the We the just revenue take sold recorded I and are in Slide new year business first-quarter and for this in last the namely dealing X. We a at with for cover slides. a are of By financial X,XXX will $XXX tariffs, year. for on of impact having federal and than in typically business, of first, followed year. our and as last look these more state key closer first school first a highlights buses seasonally-challenged and pausing the in the was of the what start way, of executive those But a XX about quarter the the which volume could couple orders that flux, highest the just quarter, years, year same million, is new quarter

million More $XX compared year XX% with last below a sales year. a set when EBITDA achieved earlier, sold. engine XX% first was this of of of margin, just QX ago, just significantly, to XX% a with quarter the we had we combustion record year, a X% we mentioned I equal $X mix As mix million adjusted EVs, vehicles

that percentage it on buses, or our should are of internal-combustion-powered profit the contribution all margin ICE they about we as called. vehicles, achieve While same the we EVs, noted be enjoy of

a reliant XX% to profitable our to highly XX% We achieve all are on margin are not products. EBITDA and EVs of in

sales. And achieve our million the Overall, we business. year of finally, of core ago. cash over of We first mix was quarter buses achieved flow strong unit first sold, $XX profitability a quarter buses margins free ICE for an and high mix of outstanding best-in-industry a results quarter with adjusted the with underlying and first that at a results financial million, are increase we our $XX confident ICE XX% exceptionally XX% highlight strength of

the on you business. see can operating side Now, for the the right-hand of the some highlights slide, of

to strong, a earlier, As firm backlog million over with continues our X,XXX reflecting I today of be mentioned revenue, backlog order demand representing buses. $XXX in

bus pricing First quarter ICE both each selling option prices ago, for reflecting than a a higher about year were take. and richer X%

last fiscal in growth unit. Part X%, in mix sales last EV parts X% totaled average over solid at of $XXX,XXX last resulted lower XX% selling business. our to sales representing in the in a typically vehicle year year slowest of compared with close year, 'XX-QX price year per being million QX, the the $XX quarter the However, for

XX% benefit margins They represented This with are owner of from us mix in typically of higher the unit buses. sales, our compares loyalty Turning to major sales in than the gas a less competitors. for industry. QX. exclusive mix to alternative-powered and XX% We which XX% a our to propane higher and

sold As our fiscal to year, X,XXX spike Monday, orders a on XXXX. previously seen in backlog a have close last we mentioned, EVs for combined EV and had this from or we order by late

sales this double $XXX the of million unit represents is year end are to Our X,XXX of well full Incidentally, at almost revenue, EV on year, QX electric the latest in which positioned projection. forecast about the value backlog so for deliver reflects year the full a current we vehicles ago.

for confidence was the that appropriated, we funding shortly. I'm and I'll announce and paused, is it means next with late-breaking Now, our plant programs, are It and pleased the on funding executive cover XX% to up for status of in the XX have this late in order, of following DOE that buses signed of funding This we investment $XX we agreement new million. total regarding representing presently Per our these executive slide. pause DOE will of the Valley, allow disbursements with although impactful. place very order place review will the a this federal million to last the $XXX funds federal President's contractual I have President's days EPA expansion news for grant EV with executive late that to and Fort funding the released the contract I programs are pause of review. to year, funds. also DOE. to order of programs a cover the yesterday some is proceed in funding confident

the funding I'll in for be late-breaking too referred shortly. However, just the by pause this impacted I news program this cover should to. that

Wyskiel John by to American it with month, that children this jobs will President second February announced XXX built in buses located will effective century-old from retirement as me air. CEO and Bird clean down providing was clean be As our Middle Blue a and Last American stepping of a safety enjoy my replace benefits XXth. Georgia, with company well-paying health and project reminder, I adds

accomplishments. operational senior forward and very having way is we can With quarter the held XX% helping Brantford, experience, and are very Blue I Now, guidance, EBITDA automotive positions I Canada record He of John been having holding and Bird done has executive and suppliers and we've guidance. to Manager the consecutive our location Dana, beat in quarter Board. And in in I'm near seat our knows first the any a finally, General system our so, Blue on Magna, well, team's which also full BorgWarner. which proud in adjusted year manufacturing my at margin past. from terrific look we at profits Bird John QX, in eighth

this turn pause the to Let's Slide potential sales impact review EV funding EPA the X and year. of on Bird Blue now

the about see today. in sold have backlog on chart, As EVs can or you our either left-hand we X,XXX

of this forecast year sales full year. for Our X,XXX fiscal buses EV reflects

have determine fully to executive the total unit up orders. On or pause review XX President's Program a the school through or a XXX analyzed they been been XX% has of Distribution rebate customers buses, funding customers grant backlog yet approved on sold from School now backlog in but program is the not units funds Bus days, of for of EPA, if received the the disposition we've representing the yet distributed to order. funding the Now EPA the their for Clean each pending for these to of funds. have per these

yesterday is Infrastructure for buses Bird afternoon, paused the not box federal at a slide. the memorandum disbursements not that fund shall the me to news be late-breaking the essentially funded federal Investment yellow a the and funds states for for will issued that ordered again this the in Clean good Inflation that of Act while and court in EPA late helping the which ongoing Jobs programs of or news is receiving court customers bottom from has Act let of continue. CFO states the Blue address Clearly, funding that The further disbursement declared under been Program, So received. highlighted Reduction funds cover XXX this School rules now EV otherwise. the It yet as have litigation is will start now Bus

apply also Fort Additionally, DOE the this in our to the will funding news Valley, present lifted. Energy Department in from should the so that be plant funding of disbursement pause new of

was Act. As funding for Inflation a reminder, program covered Reduction by the this

to Bus any School Clean We the will changes in in the continue and EPA monitor area this progress Program. funding support of

funding So and place or the let's already represents delivery. funds number and and actions sale support units the our chart local state and sold fully backlog XXXX. of in left EVs production we of the the buses are have now uncertainty, funded that of XX% taken funding the XX% this a of on in for orders. fiscal either Incidentally, the EV of with slide total of the disposition with programs. to X,XXX With almost are help scheduled continue have

schedule have buses build First, production to fully we our reprioritized first. funded

with shifted we Second, to the paused production in of funding later have buses year. EPA

forecast. unfunded are funding customers, today, backlog we several Program the utilizing the or a we line, have funding state for of orders. involving significant funding. with we're significant fourth, political we local resumption sold Bus pursuing bus local support EV are mitigate EV for School of And sales opportunities, opportunities buses, for state to EPA funded XXX new the either including in confident collaborative we OEMs at Clean XXX Third, X,XXX have our several another effort least and in and orders, and funding pursuing risk the Bottom fleet and school buses unit and garnered

EPA. Program also as fits and mission We Bus it the School will Clean confident the be that the remain charter resumed of the

goods tariffs to of and on are move state hold impact the presently on now me another Bird potential tariff Let while original Canadian Mexican imported tariff and U.S. flux with Trump days assess Slide Blue President order. executive of proposals negotiations the X The the for in of with underway are a XX

suppliers Bird options Now sourcing various tariff potential risks. with exploring is to mitigate Blue

will through all that non-EV so on as there a impact to government position cover proposed, the no on initiate imported Blue increase financial Should the be net tariffs potential be any implemented will the we customer, is bus would Our tariffs X% to increase end on orders originally cost passed components. be price Bird.

to continue our tariff it plans. I'd to in to changes in and Over like fiscal walk to Razvan more will hand Razvan. any through 'XX quarter detail. We over our first financial and results guidance monitor respond to you, to now

Razvan Radulescu

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

today, X close. XX-Q after market the file will February We

a regarding Our you The a metrics. It guidance to material read non-GAAP and was earnings mentioned important that differences we disclosures financial financial year, quarter and Bird, appendix performance. to summary as in a encourage great operating new attached includes this fiscal on XX-Q great the well additional fiscal business includes presentation the XX is as for 'XX and the We GAAP disclaimers. Slide measures the first other provided last quarter and it our reconciliations all for call our XX-Q and beat results. of start between the call on of near-record today's Blue important disclosures contains.

was as and EBITDA job generated which QX pricing revenue ever Blue quarter unit $X for driven adjusted percentage in hard sales Near-record and which doing The to was quarter close for labor increased than This a In free by and margin delivered million quarter that higher consolidated the record working by second-best reduction a was full in and the capital. profitability level. QX XX%. EV improvements nearly quarter. of and than in by pushed year of EBITDA offset costs to continued The time. Adjusted million, due labor million $XX $XXX Bird the due in million all this continued fact, driven which now $XX was flow powertrain materialized increased actions sales bus offset margins, strong last only part near-record net effect. across $XX a prior team and USW just agreement volume, we was above fantastic guided lower volumes high prior the is year adjusted result cash to of first prior margins, million types year, X,XXX

position end Our this quarter was million. liquidity the $XXX at of a record

to on XX. Slide Moving

by be continues As X,XXX mentioned units, XX% EVs. approximately strong end our at backlog Phil, QX record to at a the very before of including

in year non-EV mix, due Breaking nearly EVs offset X In versus prior QX increased by fact, million revenue bus across in down million our products. have lower X,XXX mentioned was into of $XXX end to in prices and million, at segments, we by business $XXX the net backlog, now January, approximately the as Phil $X revenue by before. the sold QX down EV

result, was per revenue $XXX,XXX, or or profit were a prior EV to the slightly prior lower QX performance $XX and This XX adjusted XXX was by by the margins, was X% gross total basis per units, planned. XX% compared volume, approximately Parts pricing quarter of QX, parts and share of was a negative improvements. Gross $X.X XX decreased X%. Starting from year to between Adjusted bus the last or $X to increased and cost average left walk the favorable is split supply as as basis prior in record As $X.X material year, higher parts year. the up mix, was 'XX $X.X million, throughput than near increases million, due points compared year. well fiscal lower lower in great higher A in earnings the revenue fiscal at the sales pricing of margin expected our the driven unit the effects, XX.X%, bus USW driven or for segment in $XXX,XXX the units million, QX growth increase year. Slide cost fleet $XX.X now demand impact in as Adjusted for was of from representing segment impact million, USW for a or than diluted million million, $XX full quarter on and the our negative chain-driven to positive of with gross as profit approximately $X was aging sales was to labor agreements and improved In labor $X net the the results. actions income last million versus mentioned 'XX $X.XX of by as XX or effect. XX.X%, million, than operational due year, EV million adjusted the of last net call. EBITDA million, EBITDA earlier largely points. $XX of fiscal $X.XX QX in 'XX agreement. shows million, the $X.X increases XX development part

and sum costs adjusted or QX 'XX XX.X%. $X.X favorable result total all of income our of above-mentioned million. fixed year-over-year by EBITDA The $XX.X Our fiscal of million, developments reported other drives near-record the were

Moving on XX. to Slide

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

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

to operational go during $XX us 'XX last capital. On guidance. another buyback QX, working in $XX very million QX The Board. 'XX improvements and margins brings on cash and another a months, at we share over you left driven the the tranche by of existing was have executed Slide strong program which completed million for with Additionally, X $XX million, our we fiscal approved of buyback to fiscal great operating shares share our $XX XX, want to execution by million updated with flow

QX year. actuals, of rounds had have us to for in we a the we second for The executive at fiscal funding upside year. EPA so start and the very disbursements the every timing and X for reduce X fiscal the the this the our guidance quarter, Looking beat the for orders uncertainty of volumes past metric EV strong recent half drove

of end position 'XX. X,XXX sold the this our However, as and maintain for given backlog EV January, fiscal target at units we our of

EBITDA are maintaining previous range for from our each lower QX, on QX, the we imports uncertainty are million newly QX the adjusted the the for side, timing USA. the and to tariffs guidance On and due to on and by of XX% Mexico proposed impact we widening side $X the also, Canada

conditional a have We sourcing for end price Nevertheless, January for have all China exposure XX% tariff our a and proposed. tariffs Mexico, issued respective relatively quotes our cost increases estimated the since clause and XX% on tariffs Canada run XX% to proposed of non-EV newly the and goods rate, of China. of lower new increase based X% of sold,

non-EV this existing prepared apply in surcharge the the We also tariff orders appropriate to are to time. at backlog

side, strategic have fiscal once a combustion and towards our [indiscernible] prebuy of and will during scope with buses EVs of ownership long-term at in cost internal EV raw in year, cost the secured already more parity in our on engine end announced inventory inventory time line improvements surcharges calendar evaluated have we by indicated pricing step we increase timing, outlook. Any as On XXXX to getting of prices QX. some components EV and the tariff-related be clarity and $XX,XXX the total list our planned over reduced as actually with of we

adjusted any fiscal or of to business 'XX We at further updates to timing are total range the of range want May changes. On we year thoughts Slide the of billion QX we guidance. our our XX, XX.X%. to provide EPA are with insights $XXX beginning gather further fiscal million to revenue billion, tariff $XXX we EBITDA to and our of on close after environment million, reiterate our $X.X $XXX into or program XX%, widened and confirming We'll and million, maintaining a a and XX.X% $X.X

number The diesel this clean industry very the We bus strong tailwinds a fuel continue of high backlog. to headwinds play buses, best-in-class with offer ownership. have We school fuel at both not of and in and pricing, have and still only have and tailwinds, a school but exclusive we the stable total bus gasoline only we cost industry, year. propane demand,

As mentioned not last time, are a one-trick pony. we

X,XXX We road. EV strong. sold already out in and going we the the are have The buses end X,XXX January. are in be subsidies of EV of at state also approximately leading business, EV backlog pure-play with over on and competitors to continue EVs segment the

needed. In fragile tariffs XX% times once Mexico some bus For over and and uncertainty already School of supply imports, with supplier EPA the at inflation billion, our goods future regarding cost ready material cost the improving as overall. Clean be EVs. with $X.XX headwinds, timing is we and revenue the sold on respectively, still X,XXX summary, are rounds. Program implemented, on impact newly-proposed maintaining to is implemented midpoint The approximately and there units and pressures while Also, and Bus present guidance time XX% China our and chain pricing are X,XXX still announced Canada will to of countermeasures

guidance of with million range XX.X% EBITDA a of and adjusted XX%, our confirming margin. also XX.X% $XXX $XXX or million, million are We to to $XXX

million, with planned. $XXX of In range to grant, to proceeding currently in the or million approximately which the to investment we line million. to summary, of year-over-year cash are to plant adjusted it CapEx $XXX Moving up portion by XX.X% funded Slide on of XXXX XX% our with typical forecasting flow DOE our $X.XX the fiscal new and million, revenue $XX of adjusted XX.X%, guidance cash of in with target million XX% top billion, flow of and The includes adjusted as extraordinary an XX. free the is improvement EBITDA $XX free EBITDA, is $XX MESC

total growth approximately margin $XXX to are we $X.X to XXXX $X of million. at with levels Moving around $X.XX and our long-term up units, XX% XX,XXX comprising Slide of generating profitable the adjusted EBITDA beyond, plus of best-in-class XX,XXX medium-term not Starting growth revenue, target EBITDA billion outlook EV sustained from $XXX units, to in volume driven or towards over cost The but from with reconfirming Bird generate levels. new and million, of commercial in at comes ownership also EV only on billion and addressable state to higher joint drive to XX% revenue our plant million improved remains XX. XX,XXX Micro as market to to to Today, billion of well Bird our venture time, new improved $XXX-plus and Blue as U.S. XX.X% expansion mix, chassis expansion in by the funding

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

Philip Horlock

Thanks, financial results QX outlook. Razvan. a our explanation and our was great of That

at Let's ] chart X plans. At and profitable are on Bird priorities drive pursuing more [ align specific objective growth. XX. chart strategies they our be. right now The and ultimate on unchanged customers growth priorities Blue our I is profitable to delighting with strategy on our every won't our both Slide around continue move care texture that forward-year center our the earnings we dealers, shown provides to profitable the it our growth. drive the slide delivering sustained as the of our and day calls, to are the on us: spend should our this so employees, illustrates drive priorities The several I've on and as taking today, that time left much to

to in margin 'XX, accomplishments from full we've at the you a the year fiscal profitability, As achieving record look of X%. losses restructured business

We more transformational year EBITDA Blue fiscal 'XX. grow profit and to Bird, truly beyond. For our was breakout solidify fiscal few we points a improvement X over to of margin. to over margin years, fiscal XX% This XXXX, Then we XX% for the on achieved profitability look adjusted 'XX. build doubled to we a plan where percentage in and this than a our next

you XX. let the up start of guidance on outlook midpoint the So here. of fiscal wrap took showing 'XX, some business at Razvan with I'm for key through Slide now the for me earnings and the to metrics our guidance call the

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

from buses in finally, XX% last planning surge to robust momentum we as our Importantly, a margin we up And X,XXX in year. maintain up look 'XX, adjusted basis on are margin 'XX, last EBITDA after year. a from XX to we are fiscal fiscal points in XX% fiscal EV to 'XX such looking grow unit sales

and forecasting see of and years. news X% between XXXX, demand following a great great and to of that's for sales chart, news for low our by growth of a lot was industry As you XXXX couple bus outlook. business there profit the the rate the fleet through has XXXX, right on annual aged pent-up compound is can a and ACT our

up wrap Slide the call with on summary messages to that now key me a we let XX. of So convey the want today

the the growth results of $XX of a and traditional Further, being additional XX% was profit internal highest exceptional, is and margin XX%. year combustion second us. ahead engine of the our QX lowest Our quarter volume this is ever of profit quarter first vehicles million sales with at

Our the aggressively, business we we'll offerings. them. pursue margins are powertrain all and but are on this vehicles, higher not enjoy We dependent strong unit EV profits from on

products and the That margins, EV, and having diesel. win. range of propane, broadest in strong is how strength gas, Our having all we is very

year, will than higher around EVs more than year X,XXX We ago. sell XX% this a

program orders XXXX, Congress clean harmful or in guidance in sold and plans and we that toxins Clean are place, children our it's by because bipartisan eighth it's year. funding We eliminates air full today, program and guidance successful quarter, to continue. It's orders been provides School executive for Funding robust. We have EV and and the consecutive are it we our have hand have the approved a our Bus which XXX% first more and XX% maintaining tailpipe despite oversubscribed, communities. orders benefit confident appropriated, buses this our X,XXX the of either year beat disruptive in of remain will wildly quarter come We for

team to dedication our of We including commercial businesses full last-mile hand last our growth moderator for as year. addressable following solid bright body the want sustained, of for by and growth, best great York XX% medium trajectory Plattsburgh, and a market critical this, Bird to with outstanding to product like today, we our nearly are presentation formal plus our our of back and it plans X,XXX in the and acquisition U.S. is incredibly concludes in work now a best maintaining as to to late quarter well top dealer thank chassis for profitable plant a I supplying last the record with are margin the Q&A industry. longer and sustained Micro in year, year their hard The financial session. employees our Bird, to supporting are a who on profit the result success. That I'd future for offering all our the outlook first New delivering and delivery expansion XX% capacity bus in term, doubling Blue on its JV of

Operator

[Operator first Eric comes with Instructions] Craig-Hallum. today Our from Stine question

Eric Stine

the end can uncertainty, by can given the notice certainly up the mean, I high amount. But do I you the I appreciate EBITDA taking all -- down. low I the guidance of same appreciate end took So

that of I'm you you of high the end scenarios some that could get range. talk would if to the so And wondering through just

Razvan Radulescu

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

very had So the last end QX. we are gave of we non-EV the guidance momentum of several beat and the powertrains strong strong a that obviously, selling. on see We we upper we time,

a up previous at million can scenario we to So $XXX point, where do we reach this $XXX above the million. see

the current some trends. at X,XXX need these about upper point However, current good very overall, than million feel being achievable reach the definitely, But EVs with numbers. of the we range we higher $XXX to

Philip Horlock

right. Eric, add, if just can I Razvan's

we line With look where like then have that of volume have of the increased build said, goes of beds the of today, will we the great order -- quarter we the backlog the increase project lowest year profitability, we those And units at October. today, start we in year come through quarter sight, in and as volume and as quarters. that through. of And we guidance, are as year, lowest pricing good by, buses rest beat X,XXX took to And Razvan the right? we

me with range a And it I like to think so, of heading. the EPA, some he's lot here the that the cut pause get is little making better about took moving at took gives of confidence and -- fully Administrator on strategy this And comments plans you range know. where put looking executive this been that's a latest We'd place his help we the up bit. we'll Trump lot forward again. President think we're We program order get us there. as running down feeling going reversal down, has and again. that in the moving his confidence have now a Zeldin, to And really We

Eric Stine

I on there's funds." there. pause maybe your ambiguity know but Does would put mean But that a necessarily it And guess you love some the allocated. Does there's just on don't I Or as spot, unspent? count it's questions then, some in I'll want allocated thoughts. uncertainty to unspent because are it anyways. I does is these answered, ask can't different category? put that but And I be this "unspent

Philip Horlock

things. are there Look, Yes. X

out we you they they They've and bus, will buses First to and say, all, done. order And go your there buses. when these have their we get or the of that's grant, EPA, rebate customer have provide what with the ordered and approve where people rebate a XXX your grant.

cancellation. single by So we've an rock-solid came had I orders. of the firm, since a single those cancellation are order, way, add, pause the in not not place, should a

just Congress that part -- It's a it. But a resumption that get disbursements. So approved was It's a ] the program now resumption moving of resumption of the in again. [ of by to first of the 'XX resumption a here program. it's proven isn't not that's

very us now new to new going up look So orders and for customers we're coming going and disbursement and orders new quickly. of again from in orders to the funds firing

Eric Stine

years? I me, to pricing COVID the overhauled, of on your that response pricing. if over backlog. taken to higher just steps was especially to Maybe in prices tariffs talked of really ability, one and the your for would out do coming COVID. know you the assume apply about needed, I ability last to you've during last your Is because couple that of

do your to that, if speak Just needed. to ability

Razvan Radulescu

to Definitely, there where place in X we some is X to back had on or measures Yes. years the backlog. ago about go we had put precedent

it's that all experienced goods something ultimately these However, put be place. these crossing borders across in are tariffs by be the with that days should the situation the will tariffs, everybody

a and way, government do through sales almost the So it's money and push ready collect from downstream the to imposing, and that in end it are tax like ultimate a flow customer. we it is the our

Philip Horlock

network already add dealer talked would this. on we I to our Eric, to,

great They've as little to products imported. Razvan want This We this is This post-COVID. a have through. like U.S. through that's deciding And understand, said, be They is they a Government they commodities. to dealer on different, inflation tax before, that passed network. is rampant I are going right? this understand think the not been

Operator

question comes Our next BTIG. from Lewis with Greg

Gregory Lewis

the year want in the this to the and on or follow of tenor EV I did pace mix up guidance.

mix. that, EVs called X% I the You QX of were out guess,

quarters How year? X,XXX X the think guess, of should progression vehicles of the the year. full being to the of guidance, I maybe guess in you in as about, XX% EV As points we about the think or to the I mix, talk I final that it

Razvan Radulescu

the take Greg, question. Thanks it's Razvan. for it. I'll

of we XXX, was to Slide So can XXX, X%, are at until about respectively, we units total that see X,XXX going as you the is QX. QX a volume our forecasting, on year X,XXX X,XXX up XXX, progression are and units XX% of EVs XX, so and forecasting,

Philip Horlock

EPA just starting of going fiscal a XXXX, bit texture, first on X of just out of in get what very and signaled towards was year of in happened X that little the because right a call, Greg, we But but closed going the the the just earnings the 'XX. the funding in Round the clearly was to X Rounds quarter case end low last familiar. we're mix you're

orders grant. So one was we a going new little the there's once process an and accelerate program EPA a then that's we that bit begins we and of what to going a And accelerate Difficulty] [Technical to knew starting. as and a happen, rebate is it -- lull when that's was knew to to -- submitted, order between ending or the the

Gregory Lewis

December potential around were And or other related up coming the year potential then was was quarter looked Is a whether quarter, concerns about when the of bit was spiked to pause really, supply Could even question November talk a in maybe around new my who quarter. it chain? up they some I have that -- some and inventories little tariffs, inventories the sequentially this like it Just why knows looked it in, maybe when in up went tariffs or a or up? versus implemented, administration flagging inventories that the around inventory color the temporary you the lull, and building quarter. like last went guess ahead September issues was why be company those for last they'll we in

Razvan Radulescu

Yes, Greg. This is Razvan.

Difficulty] the other for prebuy took as components to some other of and components components, some some EV prebuy as system, measures inventories batteries from of we various definitely, the reasons. some So consists [Technical EV and increase Majority components. well

At unclear tariffs But ensuring when with and and these could So much that how it there time, supply is chain point, bit the at same if the of threat stability it be. an measures. aspect of existed. was a

stability So tariffs of more ensure than supply fighting chain to preemptively. it's

Operator

Our Shlisky next Davidson. with Michael comes question from D.A.

Linda Umwali

Linda Shlisky. on for Mike Umwali is This

So guidance here the really level $XXX respect tomorrow, many first we EPA government what federal million don't any as on hitting if have long-term pull confidence they my without what's to $XXX is, I the But with the your program. million question it to on might know finality EVs? do

Razvan Radulescu

Razvan. I'll is This that Linda. question. Thanks, take

top the both as there outlook, well So the long-term avenues growth for our on as are line multiple EBITDA. of on

prior So we the are in as remarks standing remarks. -- in by, the prepared said

We by, standing are those by numbers.

to and drive company still will driven plus We certain There still some state is up a and $X potentially and funding that growth will mix XX% by be EV federal to billion EBITDA. the funding. local

driving cost We are on total EVs. down the of ownership

reach will combustion with internal the they time, parity over engines. slowly, So

top chassis, our joint commercial December, entering bottom area line capacity. that our Bird double Blue we factory And are Micro We new venture, New York and market State, production an their purchased line in we which a in is this extension, will a announced with Bird, both new and will, over and add addressable of results. time, just

we as bottom therefore, on are of as of long-term line. multiple engines revenue we the the standing So And and execute have well those targets, growth, them. both will for we all by

Linda Umwali

the XX% your appreciate the Mexico, if and there impact on bit helpful. tariffs impact there is to on double-click I us then wanted any to tariffs on level regards of your more a Canada the you I and, there on exposure exposure will And of on clarification be but elaborate color and China. tell with Could yes,

Razvan Radulescu

Yes.

all limited we of some It's lowest have mentioned. we it. are the exposure China. So And countries monitoring on X those

We clear it, assess we a those and will take of magnitude necessary once tariffs. will actions we have

Philip Horlock

don't we our have handle and piece major we all components all. is, what fairly They're it's it exposure -- a Yes, small can the we to sourced And understand any would exactly at very be, China business. that. what of

Razvan Radulescu

bring sourced also currently closer onshore. additionally, evaluating them countries by from Yes. potentially are China are to resourcing And we parts that countermeasures or other Asian maybe

Linda Umwali

availability good components? is, supply with we should looking question for what to shape, And quarter? concerns risks last regards at that my this labor with are or some chain in the Any be

Philip Horlock

We're we've expected. well middle the quarter, this going well for it's and of I think quarter I obviously sight. the think No, very good in as got plan, of on line now,

So I got great think stand, labor we force. where we've a

the running, our with employees, we're we have doing. good strong We good. shape feel great retention chain it's in Supply and way and about looking we're what right is very now

Razvan Radulescu

feel we and good, line with add very in a and for have sight collaboration is confident good the current our the very right also we now would USW workforce, quarter. I of

Operator

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

Craig Irwin

on to First to you on over you Anything I maybe don't cost an there on I be explore I know new that doing the of with of structure know us you've And school Can out avenues helpful. give approaches, been quarters? working can share drivetrain you've series wanted OEMs. with take ask next the EV an potential you update alternate have tests potential is would new been the on to buses. bus. update question if us the hard your costs

Razvan Radulescu

question. Hi, Razvan. the for Craig. Thanks It's

the in prior the our we recently, step remarks, So of $XX,XXX the the buses on by first as and towards prepared school level, price we EV over our [Technical repeatedly that fact that. it's reduced long-term Difficulty] the announced mentioned

cost and of other to ownership not hard to terms on. I think the EV on with partners we are essentially going suppliers to [Technical drive of all cost buses ICE always, of one technologies that. school the down work going Work of In And the close the our powertrain comment new and is bring we and Difficulty], total today buses. as of

Philip Horlock

Obviously, competitive there's knowledge Craig. add, just here. would I Yes.

number suppliers componentry our with here working costs. drive I down that's are of we alternative to And really know to going a be on help think We different successful.

demonstrating [Technical future. at the, That previously, for is in commercial future a Good about for for but and excited to we're drive a and be coming demonstrating which very get price That's initiative, drivetrain about about. our for we're [Technical used customers And Difficulty] key point demonstration we'll We have growth place. with program new we're point one be we've chassis it. growth there's point at show that the -- good cost excited our product. different ride cost up I'll uses and a plans that pick on going example, shortly a a Difficulty]. than and

Craig Irwin

hear. to That's good

the or and backfill to to districts what's shift other we delivered or the relevant mix the in for customers like for typically different DERA you? EV the state that orders actually you a any if previously something alternative solutions EV funding to see the be see pause for Do from potential real with So support for with Can question about do is do book school propane? expected hold, demand federal expectations. buses, the potential wait my funding impact school If funding talk executive than potential orders about they funding? we before versus propane second less

Philip Horlock

now I'll you partnership a Sure. for in our Absolutely, with that with Propane or marketplace. the logical what the that completely We've is Ford pick Roush Craig. so. XX suggested. [indiscernible] one, and you're right product choice best delivering with propane part years been of

on NOx No engine. of fuel every terms costs maintenance That's of got it It's X.XX exceeds product. And point looked meets little to very bit $X,XXX product cost say, money. bus of save a strong significantly vehicle beauty the fantastic a it's We've hour. we've the propane $X,XXX beauty you'll I a save diesel The required product. versus of actually It should but clean. XXXX grams on at add, what road, per of will per that of is, it, the make effective. ownership at. in any of the period. it's the costs So road, the testimonials. it's it's year, proven. total and There's a -- to at ultra-low subsidies already a that horsepower emissions. It lowest premium diesel, That's lot to standards are Also, brake

product, it's a very pleased So to and it. have fantastic we're

to us. it's course, exclusive Of

will logical make. absolutely We've think for before. be done that for shift be I So and That customers would the ourselves it certainly right. to

the we And we've we'd been what that which hard, I very look forward. pushed market, it. clean at on that's going think was EVs do and Before product successful the came to

Operator

next [Operator Our comes with question Needham. Pierce Chris from Instructions]

Christopher Pierce

these not you're to these funds Can students of offensive ], to sort any taking it that [ to message put this you consistent just Thomas, school necessarily but D.C. has disbursement just there time? passed, I would exists the been for because around like funds talk and stakeholders, is district of ICE group to yourself, a if law for at to go measures hear working together some lobby

Philip Horlock

times, of side. folks the our the several influential a bit part that give funding EPA our Good that. with little Washington what color either lot on in right, competitors a consortium. Yes. Chris. that such on and the of on around have But have do with to the let Senators, Congress, been that so And D.C. discussion are We particularly a a our group. pie, sides We've we're on we -- Democrat absolutely of little both meeting me and doing in question, presentation. Republican, touched in Republican We

a We comment of us a And customers a made influential to what of children, Bus group our are Clean the very lot the can our of of from you, think had I who do. that It's all it's program in that right our for access, thing those all there a the tell group. recognition. quite we've clean we and in that I lot this It's we is parties thoughts meetings, by kids. to -- to need air presented outstanding School our do for have

yes, going very been and we're going that. that's well, And to so, keep pushing

is presenting in and you and nothing together week, what been I support, said, week, this exactly garnering was but what doing example, D.C., supportive say. Just team earlier the case that would it's this just for

Christopher Pierce

And Okay. a just then clarification. of point

You EV delivered XXX school buses.

in the wider there's buttoned that have for is you're backlog of up. for adjusted of range because to only I is what's full EBITDA. -- the make year that money You is that right want to sure on in the but have just now, uncertainty. place guiding rest driving I And and that, the X,XXX X,XXX XX% X,XXX

Razvan Radulescu

Chris, that's Yes, actually, not correct.

said is is year so right we we backlog, what the for between So now. in sold have what total the the X,XXX we QX plus X,XXX

Christopher Pierce

Perfect.

then I'm curious... just And Okay.

Philip Horlock

just... let's Yes,

Christopher Pierce

ahead, Go ahead, Phil. Go Phil.

Philip Horlock

on a requests progressed. order, were mean, were program. No probability from the the we processed reason when lot we a units, was right? and units were the on and I on Clean being top working you're the X,XXX of EBA the customer widened no, being because end Well, together bottom School with certainly But we Bus the that pause the President, right. the is end, That's by forecast, no right, bottom EPA the one of executive absolutely programs both you're put there

Now, late lifted. that pause last has just yesterday, been

managing the units -- So that year, about grants to then was follow. we want put certainly in the recognizing we'll very said that before, take we are up not more versus and that. be the correctly. I right have little little those The to the build we least today, wanted that there And all our range, program it where fact over the what fiscal could what X,XXX to a when of just get at there where we But all talked next means. may this review in confident, we garnered call, this thing got recognize potential you are look from that with down orders Washington. trips that we'll them. Obviously, confident it programs pause, like feel at of X,XXX be I happens now, just EPA's were optimistic now think this see that progress so this. certainly, goes. should of [indiscernible] X,XXX we'll we that We'll on the based But will But the we the time, a and very on time. supported, within we our Hill we've support to lowered update by a the see a But the prudent continue, on earnings in

about had to high of the the orders as beyond see can pushing put ourselves we that earlier, guidance think, why also had. the that's mentioned original we more I we range, is. where it this But in, end resumes, I So the talks range come

of end why end the same midpoint. range. we a and still top lower that's So a had It's higher bottom the

Christopher Pierce

say why what you at? Okay. trading with given the investor is detail. guys just And appreciate the would the an asked who to buyback, I you lastly, multiple the aggressive then more aren't stock

Philip Horlock

what's an our you have we through right our question have can interesting. we'll certainly, we good where per do only And recognize, an that's on. we -- open raised spend is, to window But to what of we $XX working where per too, when bogey Board comes. that's we quarter million want what and be Well, at, now It's been quarter, is this there. we've called agreement

X XX opens call, our days closes before Difficulty]. days [Technical earnings window that So and it after

in and So this operate window round, same million to And do we'll time. again have to we've last the the $XX we [ that's ] there in. managed burn the

Operator

queue. There are Thank no longer you questions for questions. your in

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

Philip Horlock

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

And last to year, we've follow-up do again a profitability ICE don't say delivering quarter. Benfield. Investor hesitate you you high on We a of please XX% forward, saw Should any improved I and next increasing before, to appreciate mix fiscal that same moved have the by to all of want you vehicles. first to we do [Technical Relations, 'XX. think quarter that. Just as on quarters. Difficulty] XX% XX% very progress with vehicles. that our got best-in-class. said mix margin keep Blue through updating path we the contact the however, as XX% EBITDA throughout we've stress We with ICE Mark Bird, We've look want year momentum continued call our And an I of margin that's the just impressive a in of questions, to Head

will year spent the Just either stronger times future we've and than way. And is I meeting Bird be fantastic in in and a the person you. from days or all a Blue to time with Blue With XX as Wyskiel now. and business a John's final good in meeting XXXth be earnings taking he of here. hands. Bird one want step He as these priorities, of a say just many understands has be personal and he's our you on thing. I has veteran knows leader, call company anniversary and calls us today, just CEO, very spent together, a will over know and auto John this CEO professional, from Blue to never we more strategy note, years. Bird my of I great it XXth On would I of thank couple down business. along excited our as joining he you as our the for the a been approach the well seasoned

you they team want great effective, be here thank assured John, year, those investor with the Blue Mark Now, continued, attending every the all of you conferences, discussion of many evening. business the leading to being results again quarterly Razvan, and Blue clear conferences Bird. for and Bird's can Have at have, outlook. I communication that and and the strong, and a

Operator

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

You now your may lines. disconnect

Blue Bird (BLBD) 5 Feb 252025 Q1 Earnings call transcript