The following is a summary of the Blue Bird Corporation (BLBD) Q2 2024 Earnings Call Transcript:
Financial Performance:
Blue Bird reported record Q2 profit of $46 million, marking their highest ever for Q2 and the second-best quarterly profit overall.
Their Q2 net revenue reached $346 million, a 15% increase from last year, driven significantly by higher pricing and a larger mix of electric vehicles (EVs).
The average selling price per bus in fiscal '24 was 19% higher than the previous year.
Q2 adjusted EBITDA of $46 million exceeded their guidance range and amounted to $25 million more than the previous year.
The company reported an adjusted EBITDA margin of 13% in Q2 and raised their full-year adjusted EBITDA margin guidance to 12%.
Free cash flow for Q2 was reported at an impressive $54 million.
Business Progress:
There is strong market demand for school buses, with a 30% increase in firm orders for Blue Bird buses from Q1, reaching 5900 units.
The number of electric buses delivered in Q2 marked a record high being 50% more than the previous year and constituting 9% of total unit sales.
The company plans to enhance investments in engineering, business upgrades, and new product development over the next two to three years.
Supply chain issues are gradually easing, though restrictions in the availability of certain chassis components persist.
Three exclusive engine contracts were renewed with Ford and Roush till 2030, bolstering Blue Bird's leadership position in the industry for propane and gasoline engines.
In response to solid Q2 results and robust future prospects, the full-year guidance has been uplifted for net revenue, adjusted EBITDA, and free cash flow.
Blue Bird anticipates growing their electric vehicle unit sales to 800 buses in fiscal 2024, marking a growth of 47% from the previous fiscal year.
The company is in the pilot phase of the electric vehicle chassis business, with customer feedback and exhibitions expected later in the year.
Work is underway to adhere to the 2027 emission standards which will increase the need for Blue Bird's alternative powered vehicles.
More details: Blue Bird IR
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