Blue Bird Corporation (NASDAQ: BLBD) demonstrated resilience by achieving a 1.07% gain, closing the previous trading session at $21.81. This positive momentum extended into the after-market session, propelling the stock to a further increase of 6.92%. The upswing was spurred by investor confidence following the release of the company’s financial results subsequent to the conclusion of the regular session.
Blue Bird (BLBD) disclosed its fiscal performance for the fourth quarter and full year of 2023. During the quarter, net sales reached $303.0 million, marking a notable uptick of $45.3 million, equivalent to a 17.6% surge from the corresponding period in the previous year. This increase resulted from strategic product and mix adjustments, along with pricing measures implemented by management in response to heightened inventory purchase costs.
Additionally, there was a 5.0% growth in the number of units booked, with 2,116 units in the fourth quarter of fiscal 2023 compared to 2,016 units in the same period of fiscal 2022. After adjustments, BLBD’s net income for the quarter amounted to $21.3 million. That represented a substantial $42.7 million increase compared to the corresponding quarter last year. This notable improvement was primarily attributable to the $41.7 million surge in net income.
In response to the escalating demand for electric school buses, Blue Bird recently established a joint venture (JV) named Clean Bus Solutions, LLC, in collaboration with Generate Capital, a prominent sustainable investment and operating company. The purpose of this JV is to address the growing need for clean transportation for students in North America and expedite the adoption of electric vehicles (EVs).
The JV’s comprehensive fleet electrification-as-a-service offering aims to facilitate school districts’ transition to advanced electric vehicles by providing electric school buses and associated charging infrastructure through an affordable monthly subscription. This turnkey electrification solution encompasses BLBD’s leading range of electric school buses, financing for both vehicles and charging infrastructure, project planning and management, as well as fleet and charging optimization.
To accommodate the increasing demand for electric vehicles, Blue Bird is actively expanding its production capacity. The company recently inaugurated its Electric Vehicle (EV) Build-up Center, a specialized 40,000 sq.ft. facility designed to significantly augment the production of electric school buses. This facility is poised to enable BLBD to manufacture up to 5,000 EVs annually in the years ahead.
