Q3 2024 Blue Bird Corp Earnings Call Transcript
Key Points
- Blue Bird Corp (BLBD) achieved an all-time record profit for any quarter in its history during Q3 2024.
- The company reported an outstanding adjusted EBITDA margin of 14.5%, more than 4 percentage points higher than the previous year.
- Market demand for school buses remains strong, with a quarter-end backlog of firm orders for over 5,200 units.
- Electric vehicle (EV) sales saw significant growth, with over 200 units delivered in Q3, representing 9% of total unit sales.
- Blue Bird Corp (BLBD) was awarded an $80 million grant by the Department of Energy to increase EV and overall production capacity, enhancing future growth prospects.
- Despite easing supply chain issues, there are still select constraints on chassis components affecting production and deliveries.
- Adjusted free cash flow for the quarter was slightly negative, impacted by extended payment terms for significant sales to national fleets.
- The company faces ongoing material and labor cost inflation pressures, which could impact future margins.
- The recent collective bargaining agreement with the United Steelworkers Union will increase labor costs by approximately 1% of company revenues on a run-rate basis.
- Lower EV sales are expected in the first half of fiscal 2025 due to the timing of EPA orders and requested delivery schedules.
Hello all and welcome to Blue Bird's fiscal 2024 third quarter earnings conference Call. My name is Lydia and I'll be your operator today. After the prepared remarks there'll be an opportunity to ask questions. (Operator Instructions)
I'll now hand you over to Mark Benfield, head of investor relations, to begin. Please go ahead.
Thank you and welcome to Blue Bird's fiscal 2024 third quarter earnings conference call. The audio for our call is webcast live on blue-bird.com under the investor relations tab. You can access the supporting slides on our website by clicking on the presentations box on the IR landing page.
Our comments today include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted on the two slides and in our filings with the SEC. Blue Bird disclaims any obligation to update the information in this call.
This afternoon you will hear from Blue Bird CEO
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