The following is a summary of the Blue Bird Corporation (BLBD) Q4 2024 Earnings Call Transcript:
Financial Performance:
Blue Bird Corporation reported record financial results for fiscal 2024 with substantial increases across key financial metrics.
Adjusted EBITDA for the full year reached $183 million, a significant increase from the prior year, achieving a remarkable margin of 13.6%.
Net sales revenue amounted to $1.35 billion, a 19% increase year-over-year, driven by higher unit sales and increased average bus selling prices.The company achieved an adjusted free cash flow of $99 million, which was well above their target of 50% of EBITDA.
Business Progress:
Blue Bird significantly expanded its electric vehicle (EV) production, delivering over 700 units, a nearly 30% increase from the previous year, and ended the year with a record EV order backlog.
The company successfully implemented lean manufacturing processes, contributing to enhanced operational efficiency and throughput.
A major $160 million expansion plan is set for the Fort Valley, Georgia location, supported by an $80 million grant from the Department of Energy.
Opportunities:
Strong market demand for Blue Bird's school buses is evident with bus orders up 16% year-over-year, and a substantial backlog of over 4,800 units.
Continued leadership in alternative powered vehicles and expansions in EV production are poised to benefit from federal support and funding initiatives.
The growth in parts sales, breaking the $100 million revenue mark, highlights increased demand and signals potential for further expansion in this segment.
Risks:
Supply chain issues, although easing, were noted as a significant ongoing risk that could impact production and delivery schedules.
Economic fluctuations remain a concern, potentially impacting purchasing patterns and financial stability.
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