Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Investor Presentation (May 2025)
35 slides from Blue Bird's investor presentation, May 2025
Slide 1: Blue Bird Corporation Investor Presentation May 2025
“A Leader in zero- and low-emission transportation” BLUE BIRD CORPORATION (NASDAQ: BLBD) Investor Presentation May 2025
Slide 2: Important Disclaimers: Forward Looking Statements
Important Disclaimers Forward Looking Statements This presentation includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance,
Slide 3: Important Disclaimers: Non-GAAP Financial Measures
Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: “Adjusted EBITDA,” "Adjusted EBITDA Margin," “Adjusted Net Income,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is def
Slide 4: Agenda
Agenda Investment Highlights School Bus Industry Overview Company & Product Highlights FY2025 Objectives Growth Runway 4
Slide 5: Investment Highlights
Investment Highlights Countercyclical Strong industry growth ahead with a backdrop of healthy funding and an aging school bus fleet National Commitment Beneficiary of Federal and State subsidies for the electrification of school buses The Leader Leading market position in alternative power and elect
Slide 6: School Bus Industry Overview
School Bus Industry Overview 6
Slide 7: Industry Highlights
Industry Highlights OEMs School Bus Customers ~3,400 Contractors 500k+ Thomas Blue Bird ~10,000 School Districts IC High barriers to entry Highly specialized product -- Complex state and customer requirements -- Dealer and service network -- Customer relationship driven business Demand Drivers Popul
Slide 8: Type C & D School Bus Industry
Type C & D School Bus Industry Mean: 30,520 27,200 Historical Registrations Long Term Avg. ('85-'24) ▪ Industry avg size is 30,500 new units annually based on S&P Global Mobility registrations (formerly Polk) ▪ Total fleet of school buses is ~570k units and average age is about 11 years ▪ Industry s
Slide 9: Fleet Age Profile Supports Elevated Replacement Demand
Fleet Age Profile Supports Elevated Replacement Demand ~570K School Buses on the Road Low replacements due to 40,000 supply chain challenges Average fleet age ~11 years 35,000 30,000 25,000 47%+ of School Buses are 20,000 10 years and older! 15,000 10,000 5,000 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Slide 10: Company & Product Highlights
Company & Product Highlights 10
Slide 11: Introduction to Blue Bird
Introduction to Blue Bird ▪ Headquartered in Macon, Georgia Dedicated Manufacturing Micro Bird JV Facility ▪ Leader in alternative power; #1 in electric & propane school buses (Drummondville, Quebec, Canada) ▪ 60%+ of Blue Bird sales are non-diesel; <10-20% for competitors Footprint Parts Distributi
Slide 12: Proven Leadership in Clean Technologies
Proven Leadership in Clean Technologies ▪ Proven track record of leadership in new technologies; more than 60% of unit sales are non- diesel ▪ Leader in electric and propane- powered school buses; the future of school transportation ▪ Beneficiary of Federal and State subsidies for electric school bu
Slide 13: Build Complete Ecosystem for EV School Bus Deployment
Build Complete Ecosystem for EV School Bus Deployment END OF LIFE ASSESSMENT Determine recycling program for Determine what bus best fits the used batteries after use customer’s needs based on terrain, climate and route planning SERVICE & SUPPORT FINANCING Connect with dealer and EV system Identify
Slide 14: Blue Bird Commercial Chassis – TAM Expansion
Blue Bird Commercial Chassis – TAM Expansion Product Debut ▪ Best-in-Class Offering & Features: ✓ Electric ✓ Propane ✓ 55° Wheel Cut ✓ Front Axle Clearance ✓ Galvanized Frame Rails ✓ Class 5-6 Chassis ▪ Tremendous response to the product ▪ Immediate interest in both propane and EV from multiple cust
Slide 15: FY2025 Objectives
FY2025 Objectives 15
Slide 16: The Blue Bird Value System
The Blue Bird Value System Leader in Safety Best Great Products Service & Features Sustained Profitable Growth 8% 14% 15%+ EBITDA Margin Highest Competitive Quality & Cost Durability Alt Power Leader The Blue Bird Value System, it’s about results, and how we get there 16
Slide 17: FY2025 Quarterly Guidance – Updated and Confirmed
FY2025 Quarterly Guidance – UPDATED and CONFIRMED Rev. $314 $359 ~$375 ~$400 $1,425 - $1,475 $M ✓ Growing EV sales, and Revenue per QTR to ~$400M in Q4 200 Adj. EBITDA 1 ✓ Approx. 1,100 EV sold and in backlog, tariff EV volume risk for Q4 190 - 210 ✓ Growing Adj. EBITDA in the $45M - $60M range ✓ Co
Slide 18: FY2025 Full Year Guidance – Confirm $200M and ~14% Margin
FY2025 Full Year Guidance – Confirm $200M and ~14% Margin Tailwinds FY25 Scenarios Headwinds Downside Guidance Upside • Strong ICE demand Supply / EPA EV • Tariffs (mainly EV) • Stable Gross Margins Units 9,100 9,300 9,500 • Supply chain t/o EV Units ~800 ~900 ~1,000 • Propane/Gas exclusive • Labor
Slide 19: FY2025 Full Year Guidance – Confirm $200M and ~14% Margin
FY2025 Full Year Guidance – Confirm $200M and ~14% Margin FY2024 FY2025 FY2025 FY2025 B/(W) $ Millions Actuals Guidance February May Vs. Prior Year Guidance Guidance Net Revenue $1,347 $1,400 - $1,500 $1,400 - $1,500 $1,425 - $1,475 $78 - $128 Adj. EBITDA1 $183 $190 - $210 $185 - $215 $190 - $210 $7
Slide 20: Blue Bird Awarded $80M MESC Grant by DOE for New Plant
Blue Bird Awarded $80M MESC Grant by DOE for New Plant ▪ New 600k sq.ft. Type D / EV production facility in Fort Valley, GA ▪ Total Investment ~$160M, 50% funded by Blue Bird ▪ Build-out 2 years, launch expected by mid CY 2027 ▪ FCF CAPEX impact in FY25 of up to $30M ▪ Raises total capacity on one s
Slide 21: Record Profit Outlook in FY2025 & Beyond
Record Profit Outlook in FY2025 & Beyond NA School Bus Industry Thousands Bookings 3%+ = ~9,300 units Class 6-7* 39.5 41.7 38.9 37.7 36.8 36.1 36.4 35.8 31.4 Revenue 8%+ = ~$1.45 Billion 29.6 30.5 29.3 26.4 25.7 ~6% CAGR Adj. EBITDA 9% = ~$200 Million Adj. EBITDA 40 bps = ~14% Margin EV Bookings 28%
Slide 22: Solid Growth Runway
Solid Growth Runway 22
Slide 23: We Reconfirm Our Mid Term Outlook at 14% EBITDA
We Reconfirm Our Mid Term Outlook at 14% EBITDA Revenue $M Diesel Gas/Propane EV QTR Full YR 2024 2025 Outlook Outlook Rev. Units Actual Updated Mid Term Long Term (2028+) $M 2,466 Guidance 12,000+ 2,500 2,254 2,151 2,295 400 12,000 11,000 3,000 2,129 2,130 10,000 2,000 10,000 9,000 9,300 2,500 $350
Slide 24: Strong Outlook Ahead for Blue Bird / Investment Highlights
Strong Outlook Ahead for Blue Bird / Investment Highlights Countercyclical Strong industry growth ahead with a backdrop of healthy funding and an aging school bus fleet National Commitment Beneficiary of Federal and State subsidies for the electrification of school buses The Leader Leading market po
Slide 25: Appendix
Appendix 25
Slide 26: Key FY2025 Q2 Takeaways
Key FY2025 Q2 Takeaways Beat Q2 Guidance on All Metrics; Maintaining Full Year Guidance Robust Demand, Increasing Order Share and Continuing Strong Backlog Continued Plant Operational Performance with Greater Stability Strong Pricing Being Maintained, and Competitive within Market EV Backlog Increas
Slide 27: FY2025 Q2 Financial Results and Key Business Highlights
FY2025 Q2 Financial Results and Key Business Highlights FY2025 Q2 Results Managing QUARTERLY HIGHLIGHTS BUSINESS HIGHLIGHTS Margin-Neutral Tariff Strategy UNITS NET Alt. Power sales SOLD SALES Strong mix of 57% 2,295 $359M ~$770M Backlog of 4.9k Units1 EPA Funds 1,100+ EVs +41 vs.’24 +$13M vs.’24 fl
Slide 28: FY2025 Q2 and YTD Financial Results
FY2025 Q2 and YTD Financial Results FY2025 Q2 Results FY2025 H1 Results QUARTERLY HIGHLIGHTS FIRST HALF HIGHLIGHTS UNITS NET UNITS NET SOLD SALES SOLD SALES 2,295 $359M 4,425 $673M +41 vs.’24 +$13M vs.’24 +42 vs.’24 +$9M vs.’24 Adjusted Adjusted Adjusted Adjusted EBITDA FCF EBITDA FCF $49M $19M $95M
Slide 29: Income Statement
Income Statement ($ Millions) FY2025-Q2 FY2024-Q2 B/(W) Unit Volume 2,295 2,254 41 Backlog Units 4,889 5,904 (1,015) Net Revenue $358.9 $345.9 $13.0 Bus Rev./Unit ($000's) $145.0 $141.1 $3.9 / 2.8% Gross Margin 19.7% 18.4% 1.3 ppts Adj. EBITDA1 $49.2 $45.8 $3.4 Adj. EBITDA Margin1 13.7% 13.2% 0.5 pp
Slide 30: FY24-Q2 to FY25-Q2 Adj. EBITDA Walk
FY24-Q2 to FY25-Q2 Adj. EBITDA Walk ($ Millions) Unit Volumes +3.4 FY24-Q2 2,254 8.5 FY25-Q2 2,295 Delta +41 (0.5) (0.8) 49.2 45.8 (3.8) USW Labor Costs Lower t/o EV Volumes Net Pricing, offset by Revenues SG&A and FY24-Q2 210 FY25-Q2 265 Higher EV Mix Better Efficiency from Labor Costs Delta +55 Wa
Slide 31: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($ Millions) FY2025-Q2 FY2024-Q2 B/(W) Cash $130.7 $93.1 $37.6 Debt $(92.7) $(97.3) $4.6 Liquidity $274.0 $236.4 $37.6 Operating Cash Flow $27.8 $54.6 $(26.8) Adj. Free Cash Flow1 $18.7 $53.7 $(35.0) Trade Working Capital2 $12.9 $22.1 $(9.2) Very strong core Operating Cas
Slide 32: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 32
Slide 33: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 33
Slide 34: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 34
Slide 35: Investor Relations Contact Information
Investor Relations Contact Information Mark Benfield Mark.Benfield@Blue-Bird.com 35