Blue Bird reports Q1 2025 profit as electric bus orders grow and ICE sales drive margins
Blue Bird reported strong profitability in Q1 2025, driven by steady demand for ICE buses, growing EV orders, and operational efficiencies.
With a solid backlog and reaffirmed financial targets, the company remains positioned for continued profitability and growth in both traditional and electric school buses.
The company reported $28.7 million in net income and $45.8 million in adjusted EBITDA.
While revenue declined 1.2% to $313.9 million, strong sales of internal combustion engine (ICE) buses, along with emission credit sales, helped drive profitability.
The company reaffirmed its full-year guidance, projecting up to $1.5 billion in revenue and $215 million in adjusted EBITDA, and highlighted continued growth in electric school bus orders, with 1,000 units now in its backlog.
Revenue and unit sales performance
Blue Bird’s $313.9 million in revenue for Q1 2025 marked a $3.8 million decline (1.2%) from the previous year. The company sold 2,130 school buses, consistent with Q1 2024.
The revenue decline was primarily due to a 1.9% decrease in the average selling price per bus, reflecting changes in product and customer mix, including lower electric vehicle (EV) sales. However, parts sales increased by 6.2% ($1.5 million) due to price adjustments and higher demand.
Profitability and margins
Despite lower revenue, Blue Bird remained profitable, with net income increasing $2.6 million year-over-year to $28.7 million. This was largely due to $2.6 million in emission credit sales, recorded under other income, which did not occur in the prior year.
Gross profit for the quarter was $60.3 million, a $3.2 million decline from Q1 2024, driven by lower sales volume.
Adjusted EBITDA was $45.8 million, down $1.9 million from the previous year, primarily due to the reduction in gross profit. However, operational efficiencies and emission credit sales helped maintain profitability.
CFO Razvan Radulescu emphasized the company’s strong financial standing:
“We are very pleased with the first quarter results, with the second highest ever Q1 Adj. EBITDA. Our business is in a very strong position and we continue to deliver ahead of the plan we have been messaging.”
ICE and electric bus sales
94% of Q1 bus sales were internal combustion engine (ICE) models, reflecting the continued strength of Blue Bird’s core business.
Over 130 electric buses were delivered, exceeding expectations.
Electric bus orders continue to grow, driven by EPA’s Clean School Bus Program and state/local funding.
The company’s EV backlog now stands at approximately 1,000 units.
Blue Bird’s total order backlog remains strong at nearly 4,400 units, supporting stable production levels for the coming quarters.
FY 2025 guidance and long-term outlook
Blue Bird reaffirmed its full-year 2025 guidance:
Net revenue: $1.4 billion to $1.5 billion
Adjusted EBITDA: $185 million to $215 million
Adjusted free cash flow: $40 million to $60 million
The company also reiterated its long-term target of achieving a 15%+ adjusted EBITDA margin on $2 billion in revenue.
CEO Phil Horlock said Blue Bird continues to strengthen its market position:
“I am incredibly proud of our team’s achievements in delivering another outstanding result and near record profit in the first quarter. The Blue Bird team continued to exceed expectations, improving operations, driving new orders, and expanding our leadership in alternative-powered buses.”
