BLBD

Financial and Operational Results

• Bluebird beat guidance on all metrics for the 15th consecutive quarter, delivering record Q3 profit.
• Total backlog ended the quarter at 4,900 units (1,300 MicroBird units, ~3,600 Type C and D units, ~800 EV units), with much of the EV backlog scheduled for delivery in fiscal 2027.
• Trailing 12-month industry orders rose 7%, while Bluebird order intake rose 9%, positioning the company well in the school bus market.
• All-powered Bluebird buses made up 54% of Q3 unit sales; EV order backlog extended into 2027, and the company remains optimistic about EV demand for school buses supported by EPA Clean School Bus Program funding and state mandates.
• The MicroBird acquisition closed in the quarter, bringing consolidated Type A school bus revenue, future growth in the commercial shuttle bus segment, and the Ecotuned integrated EV platform.

Major Strategic Announcement: Ford Collaboration and Detroit Chassis Acquisition

• Bluebird expanded its collaboration with Ford Motor Company into the Class 5 and 6 commercial strip chassis market, and will acquire Detroit Chassis LLC's Detroit Assembly Plant assets.
• Under the agreement, Bluebird will take over design, manufacturing, and sales responsibility for next-generation F53 and F59 commercial strip chassis, with Ford supplying next-generation medium-duty powertrains, through 2033 (with an extension option to 2036).
• The asset purchase is expected to close in calendar Q1 2027, with production of new chassis starting in calendar Q1 2028. The deal expands Bluebird's total addressable market by $1.4 billion in the largely two-player commercial delivery and RV segments.
• Technical design work for the new chassis will have read-across to Bluebird's future bus designs, enabling scalable expansion into additional product offerings long-term.

Long-Term Corporate Strategy

• Business Continuity & Stability: Invest in updating manufacturing facilities and products, including a new assembly plant planned to launch production in late calendar 2028, to support infrastructure and competitive product offerings.
• Profitable Growth: Capitalize on projected school bus market growth, and expand into adjacent markets to increase total addressable market (TAM has grown 150% in units and over 85% in dollars in just one year via MicroBird and the chassis deal, reshaping Bluebird from a pure school bus manufacturer to a growing specialty vehicle player).
• Margin Expansion: Advance competitiveness and cost reduction via ongoing automation (Industry 3.0) and future Industry 4.0 initiatives at the new manufacturing plant.
• Balance Sheet Deployment: Pursue strategic opportunistic acquisitions and investments while maintaining a strong, pristine balance sheet with ample liquidity.

• Full fiscal 2026 revenue guidance is maintained at a range of $1.74 to $1.76 billion, with the same midpoint as prior guidance. Adjusted EBITDA guidance is raised to a range of $245 to $250 million (midpoint $247 million, ~14% margin), driven by stronger than expected Q3 results. Adjusted free cash flow guidance is maintained at $125 to $135 million, consistent with the target of ~50% of adjusted EBITDA.
• Short-term pro forma (including full year MicroBird consolidation) for 2026/2027 is approximately $2 billion in revenue and ~$260 million adjusted EBITDA (13% margin), prior to non-capitalized chassis investment and new product development spending. Full fiscal 2027 guidance will be provided on the next earnings call.
• The new commercial chassis segment is projected to ramp to 10,000 units by 2030, and generate long-term adjusted EBITDA of over $100 million (14% to 15% margin).
• Medium-term adjusted EBITDA target is raised to over $300 million (previously $275 million), with long-term (post-chassis launch) guidance raised to $3 billion in total revenue and $400 to $500+ million adjusted EBITDA (14.5% to 15%+ margin).
• Capital allocation plan: The company intends to refinance and expand its credit facility by the end of calendar 2026, maintain a leverage ratio below 2x adjusted EBITDA, and continue opportunistic share buybacks with ~$90 million remaining on the existing buyback program.

1. Bluebird Core Bus Segment: Net revenue was $369 million, down 1% year-over-year due to elevated finished goods inventory for GSA and fleet units. The segment sold 2,290 units (Bluebird-branded units were 7% below prior year levels), including 300 EV units (up 29 units year-over-year). Average revenue per Bluebird bus increased by $10,000 year-over-year. This segment contributed 71.4% of total consolidated Q3 revenue.
2. MicroBird Segment: This is the first quarter of full consolidation following the 50% joint venture acquisition closed in April 2026. MicroBird contributed $123 million in revenue and sold 1,235 units including 55 EV units. This segment contributed 23.8% of total consolidated Q3 revenue.
3. Parts Segment: Revenue was $25 million, flat year-over-year, and contributed 4.8% of total consolidated Q3 revenue.

Overall consolidated Q3 2026 results: Total revenue $517 million (up $119 million year-over-year), 3,525 total units sold. Adjusted EBITDA was $71 million (up $13 million year-over-year, with $8 million of the increase from MicroBird consolidation). Adjusted net income was a Q3 record $45 million (up $6 million year-over-year), and adjusted diluted EPS was $1.28 (up 9 cents year-over-year). Year-to-date consolidated revenue was $1.2 billion (up 12% year-over-year), with record adjusted EBITDA of $172 million (up $19 million year-over-year) and adjusted free cash flow of $100 million (up $7 million year-over-year).

• Ongoing tariff policy volatility from the current U.S. administration creates margin pressure, though management has targeted a margin neutral outcome and is well positioned to navigate this risk via incremental tariff recovery in pricing.
• The new commercial chassis market has inherent cyclicality, particularly for the RV and last-mile delivery segments, which could lead to volume variability relative to base projections.
• Entry into the new chassis segment requires execution of manufacturing ramp-up, integration of new powertrain technology, and customer transition, which carries inherent execution risk, though management notes risk is mitigated by the collaborative transition plan with Ford.
• General macroeconomic and industry supply chain volatility could impact order intake and production timelines, though the company notes strong market fundamentals and backlog stability.

Q: Is the new Ford chassis agreement Bluebird's primary path into the commercial chassis market, and what will happen to the prior excess chassis capacity at Fort Valley? Will the 10,000 unit 2030 target require a ramp-up from launch?

A: The Ford collaboration is Bluebird's primary path into the market, offering a much larger opportunity than the company's prior standalone chassis plan. No immediate use for the Fort Valley excess capacity is planned; any future utilization will be evaluated down the road. Production start (SOP) is mid-fiscal 2028, so 2028 and 2029 are ramp-up years. Management's 10,000 unit 2030 target is conservative, with upside potential for higher volumes long-term. The market is a concentrated two-player space, and the F53/F59 platform already has an established successful track record, making this a strong opportunity.\n\nQ: Historical volumes for the F53/F59 have averaged over 15,000 units annually, so why is Bluebird's 10,000 unit 2030 target lower? Who will handle existing chassis inventory before the new generation launches in 2028, and will the new chassis support propane powertrains?

A: The lower base case target is conservative, accounts for market cyclicality in RV and last-mile delivery, and leaves clear upside for higher volumes. Ford will retain full responsibility for all existing generation F53/F59 production, inventory, and sales through the transition, so Bluebird has no involvement with the legacy product. The launch will focus on gas-powered chassis first, but propane is a logical future opportunity given Bluebird's existing history of successful propane collaborations with Ford and Roush.\n\nQ: Why were Bluebird core unit sales down 7% year-over-year in Q3, and what is the purchase price for the Detroit Chassis asset acquisition? How does the customer transition work in this two-player market, and why is this a pivot from prior plans?

A: The 7% year-over-year decline is entirely due to timing of revenue recognition for large GSA and fleet orders, which were built in Q3 but will be recognized in Q4 2026. The Detroit Chassis asset purchase price is $7 million cash, with no shareholder dilution. Total planned investment for entry into the segment is under $90 million. Ford will work hand-in-hand with Bluebird to transition existing customers (bodybuilders, RV manufacturers, fleets), which mitigates most transition risk. This is a pivot from the prior standalone chassis plan, as this opportunity is 10 times larger than the original plan, so the company prioritized this path, with EV and propane options to be added later as the market develops.