MACON, Ga.-Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2025 third quarter results.
“I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time quarterly record revenue and profit,” said John Wyskiel, President & CEO of Blue Bird Corporation. “The Blue Bird team continued to exceed expectations, improving operations, navigating tariffs, and expanding our leadership in alternative-powered buses. Our backlog remains strong with approximately 3,900 units at the end of the third quarter, despite industry orders slowing due to tariff-related pricing actions. Unit sales were above the same period as last year, and revenue was up by $65M, driven by product mix and pricing. We delivered an exceptional Adj. EBITDA of $58.5M for Q3 2025, a new all-time record for the Company.

“In our push to expand our leadership in alternative-powered school buses, we delivered a record 271 electric-powered buses this quarter. As of the end of the quarter, we have 1,200 EV buses either sold or in our firm order backlog, which supports our EV sales target for 2025.

“Based on our strong Q3 performance, we’ve raised our full-year financial guidance for Adjusted EBITDA to $210 million, with a 14.5% margin. This will be an all-time full-year record for Blue Bird, and we look forward to sustained profitable growth in the coming years.”

Raising FY2025 Guidance and Long-Term Outlook

“We are very pleased with the third quarter results, with our highest ever quarterly Adj. EBITDA,” said Razvan Radulescu, CFO of Blue Bird Corporation. “Our business is in a very strong position and we continue to deliver ahead of the plan we have been messaging. We are tightening our full-year 2025 guidance for Net Revenue at ~$1.45 Billion and raising our Adj. EBITDA guidance to $205-215 million and Adj. Free Cash Flow to $90-$100 million. Additionally, we are raising our long-term profit outlook towards an Adjusted EBITDA margin of 16%+ on ~$2 billion in revenue. We are confident in our profitable growth plans and are excited to announce a new $100 million share repurchase program.”

Fiscal 2025 Third Quarter Results

Net Sales

Net sales were $398.0 million for the third quarter of fiscal 2025, an increase of $64.6 million, or 19.4%, compared to $333.4 million for the third quarter of fiscal 2024. The increase in net sales is primarily due to an increase in Bus unit bookings, Bus customer and product mix changes and cumulative Bus price increases, including an increase that was intended to mitigate the impact of increased procurement costs for certain of our imported inventory as a result of the imposition of tariffs beginning during the third quarter of fiscal 2025, as well as a small increase in Parts sales.

Bus sales increased $64.2 million, or 20.8%, reflecting a 14.7% increase in unit bookings and a 5.4% increase in average sales price per unit. In the third quarter of fiscal 2025, 2,467 units booked compared to 2,151 units booked for the same period in fiscal 2024. The increase in unit price for the third quarter of fiscal 2025 compared to the same period in fiscal 2024 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs.

Parts sales increased $0.4 million, or 1.7%, for the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024. This increase is primarily attributed to price increases implemented to offset increases in inventory costs that were partially offset by slight variations due to product and channel mix.

Gross Profit

Third quarter gross profit of $85.9 million represented an increase of $16.6 million from the third quarter of last year. The increase was primarily driven by the $64.6 million increase in net sales, discussed above, and partially offset by a corresponding increase of $48.1 million in cost of goods sold.

Net Income

Net income was $36.5 million for the third quarter of fiscal 2025, an increase of $7.7 million from the third quarter of last year. Among other smaller fluctuations, the $16.6 million increase in gross profit, discussed above, was offset by an increase of $6.2 million in selling, general and administrative expenses, primarily due to an increase in a) research and development expense in the third quarter of fiscal 2025 and b) labor costs.

Adjusted Net Income

Adjusted net income of $38.7 million represented an increase of $8.1 million from the third quarter of last year. The increase was primarily driven by the $7.7 million increase in Net Income, discussed above.

Adjusted EBITDA

Adjusted EBITDA was $58.5 million, which was an increase of $10.2 million compared with the third quarter of fiscal 2024. The increase primarily relates to the increase in gross profit, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the gross profit discussion above that was partially offset by a smaller increase in selling, general and administrative expenses, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as discussed above.

Year-to-Date Fiscal 2025 Results

Net Sales

Net sales were $1,070.7 million for the nine months ended June 28, 2025, an increase of $73.8 million, or 7.4%, compared to $996.9 million for the nine months ended June 29, 2024. The increase in net sales is primarily due to an increase in Bus unit bookings, Bus customer and product mix changes and cumulative Bus price increases, including an increase that was intended to mitigate the impact of increased procurement costs for certain of our imported inventory as a result of the imposition of tariffs beginning during the third quarter of fiscal 2025, as well as a small increase in Parts sales.

Bus sales increased $73.7 million, or 8.0%, reflecting a 5.5% increase in units booked and a 2.4% increase in average sales price per unit. 6,892 units booked in the nine months ended June 28, 2025 compared with 6,534 units booked during the same period in fiscal 2024. The increase in unit price for the first nine months of fiscal 2025 compared to the same period in fiscal 2024 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs.

Parts sales increased $0.1 million, or 0.2%, for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024. This small increase is primarily attributed to price increases implemented to offset increases in inventory costs that were partially offset by slight variations due to product and channel mix.

Gross Profit

Fiscal year-to-date gross profit was $217.1 million, an increase of $20.5 million from the same period in the prior year. The increase was primarily driven by the $73.8 million increase in net sales, discussed above, and partially offset by a corresponding increase of $53.2 million in cost of goods sold.

Net Income

Net income was $91.2 million for the nine months ended June 28, 2025, a $10.3 million increase from the same period in the prior year. The increase in net income was primarily driven by the $20.5 million increase in gross profit, discussed above, and among other smaller fluctuations, was partially offset by an increase of $17.5 million in selling, general and administrative expenses, primarily due to an increase in a) share-based compensation expense recorded in the second quarter of fiscal 2025 relating to the retirement of our former President and Chief Executive Officer, b) labor costs and c) research and development expense.

Adjusted Net Income

Adjusted net income was $100.8 million for the nine months ended June 28, 2025, an increase of $11.3 million compared to the same period in the prior year. This is primarily due to the $10.3 million increase in Net Income, discussed above.

Adjusted EBITDA

Adjusted EBITDA was $153.4 million for the nine months ended June 28, 2025, an increase of $11.8 million compared to the same period in the prior year. This increase is primarily due to the increase in gross profit, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the gross profit discussion above, that was partially offset by a smaller increase in selling, general and administrative expenses, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as discussed above.

Conference Call Details

Blue Bird will discuss its third quarter 2025 results in a conference call at 4:30 PM ET today. Participants may listen to the audio portion of the conference call either through a live audio webcast on the Company’s website or by telephone. The slide presentation and webcast can be accessed via the Investor Relations portion of Blue Bird’s website at www.blue-bird.com.

Webcast participants should log on and register at least 15 minutes prior to the start time on the Investor Relations homepage of Blue Bird’s website at http://investors.blue-bird.com. Click the link in the events box on the Investor Relations landing page.
Participants desiring audio only should dial 404-975-4839 or 833-470-1428. The access code is 189469.

A replay of the webcast will be available approximately two hours after the call concludes via the same link on Blue Bird’s website.

About Blue Bird Corporation
Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 20,000 propane, natural gas, and electric powered buses in operation today. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird’s complete product and service portfolio, visit www.blue-bird.com.

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COLUMBUS, Ind. — Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2025.

“We delivered strong second quarter results, driven by record profitability in our Power Systems and Distribution segments,” said Jennifer Rumsey, Chair and CEO. “Our employees’ resilience and commitment continue to power our success in a dynamic environment. We see a contrast across our markets with robust demand for power generation equipment supported by clear secular drivers, and our more economically sensitive markets, such as truck, where end-user confidence has declined. This contrast will become even more pronounced in the second half of the year as North America truck build rates decline sharply, starting in the third quarter. Aftermarket demand for parts and service remains stable.”

Second quarter revenues of $8.6 billion decreased 2 percent from the same quarter in 2024. Sales in North America declined 6 percent, and international revenues increased 5 pecent due to higher demand in Europe and China.

Net income attributable to Cummins in the second quarter was $890 million, or $6.43 per diluted share, compared to $726 million, or $5.26 per diluted share, in 2024.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.6 billion, or 18.4 percent of sales, compared to $1.3 billion, or 15.3 percent of sales, a year ago.

2025 Outlook

Due to continued economic uncertainty, the company will not be reinstating a full-year outlook for revenue or profitability at this time.

“Our diversified portfolio, disciplined cost management and strong execution have enabled us to navigate recent industry challenges,” said Rumsey. “However, persistent economic and regulatory uncertainty continues to impact a number of our key markets and cloud our near-term outlook for both business and market performance. We remain focused on delivering for our customers and look forward to providing additional clarity as this uncertainty subsides.”

Second Quarter 2025 Highlights

Cummins announced an increase in the quarterly common stock cash dividend from $1.82 to $2.00 per share. The company has increased the quarterly dividend to shareholders for 16 consecutive years.

Cummins launched the new 17-liter engine platform generator, expanding on the success of the acclaimed Centum Series generator sets. Producing up to 1 megawatt of power, the S17 Centum genset was developed to produce a large power output within a compact footprint to meet the growing demands of power in urban environments. The new genset is designed to support a wide range of critical market segments such as commercial properties, healthcare facilities and water treatment plants.

Jennifer Rumsey was named one of Barron’s Top CEOs of 2025. Jennifer was recognized for her visionary leadership and commitment to innovation and sustainability. The annual list features 26 leaders whose deft guidance has put their companies in a stronger competitive position.

Second Quarter 2025 Detail (all comparisons to same period in 2024):

Engine Segment

• Sales – $2.9 billion, down 8 percent
• Segment EBITDA – $400 million, or 13.8 percent of sales, compared to $445 million, or 14.1 percent of sales

Revenues decreased 8 percent in North America and 7 percent in international markets due to lower on-highway demand in the United States and Mexico.

Components Segment

• Sales – $2.7 billion, down 9 percent
• Segment EBITDA – $397 million, or 14.7 percent of sales, compared to $406 million, or 13.6 percent of sales

Revenues in North America decreased by 15% and international sales were flat primarily due to lower on-highway demand in the United States.
Distribution Segment

• Sales – $3.0 billion, up 7 percent
• Segment EBITDA – $445 million, or 14.6 percent of sales, compared to $314 million, or 11.1 percent of sales

Revenues in North America increased 9 percent and international sales increased by 4% primarily due to increased demand for power generation products in the United States.
Power Systems Segment

• Sales – $1.9 billion, up 19%
• Segment EBITDA – $430 million, or 22.8% of sales, compared to $301 million, or 18.9% of sales

Revenues in North America increased 23% and international sales increased 16% driven primarily by increased power generation demand, particularly for the data center and mission critical markets.

Accelera Segment

• Sales – $105 million, down 5 percent
• Segment EBITDA loss – $100 million, compared to $117 million

Revenues decreased due to lower electrolyzer installations. The company remains committed to pacing and focusing our zero emissions investments on the most promising paths in order to ensure we are set up for long-term success as part of our Destination Zero strategy. These continued investments contributed to the EBITDA losses.
About Cummins Inc.

Cummins Inc., a global power solutions leader, is comprised of five business segments – Engine, Components, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, electrified power systems with innovative components and subsystems, including battery, fuel cell and electric power technologies and hydrogen production technologies. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 69,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $3.9 billion on sales of $34.1 billion in 2024. See how Cummins is powering a world that’s always on by accessing news releases and more information at https://www.cummins.com.

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Amid a stunning financial turnaround over the found its leader to succeed Phil Horlock as both president and CEO. Personal reasons forced Blue Bird to go in a different direction last fall after Britton Smith unceremoniously resigned. But the company didn’t have to look far for the best candidate to step up and into the position.

Wyskiel had spent the previous two decades leading Magna International, the last five years as global president of the manufacturer’s seating division. But he knows school buses intimately. He came to Magna over 15 years ago from Canadian Blue Bird Coach, where he was general manager of Type A and Type C school bus body and assembly production.

“John’s deep and varied expertise in operational excellence and manufacturing leadership makes him an ideal fit for this role at this time,” Doug Grimm, chairman of Blue Bird, said when Wyskiel’s name was announced in January. “His proven track record will be invaluable as we expand our footprint and improve our operational processes to support our customers.”

School Transportation News caught up with Wyskiel shortly after he started on Feb. 17 to discuss the company’s evolution as it prepares to celebrate its 100th birthday in 2027, the same year the industry is poised to meet the latest federal emissions standards that were still under review by the new Trump administration EPA. Editor’s note Wyskiel declined to comment on tariff impacts, referring instead to a previous statement made by Horlock in January that Blue Bird would pass along any additional manufacturing costs to customers.

STN: How has Blue Bird changed since you were last mpart of the company 20 years ago?

Wyskiel: Of course, the company is publicly traded today, and it has been successful financially. However, at its core, the DNA of this century-old American company has not changed. There is a strong sense of pride within Blue Bird reflecting a company culture that deeply cares about people. The talent within the company has continued to expand over the years in all functional areas. Operationally, you can see a much greater focus on metrics and key performance indicators, which has enabled Blue Bird to become very focused and to make data-based decisions. From a product perspective, our rich history of innovations [are] on full display, particularly around alternative powertrain offerings. All of these developments have turned Blue Bird into a high performance business and strengthened its iconic brand.

STN: How would you describe your leadership style? What is your strategic vision for Blue Bird?

Wyskiel: I am a pretty engaged operator, and I believe people work best in an environment which fosters empowerment and accountability. Plus, when there is an issue, there is no substitute for “go see.” Whether it’s on the shop floor, at a dealer or at a customer, there is no substitution. I have returned to Blue Bird after a 20-year hiatus only a few weeks ago [at interview time]. Therefore, it’s a little early to talk strategy in specifics just yet. But I think the theme will be to shift to a long-term view for our customers, dealers, team members and investors. This means investing in facilities, our products and expanding into adjacent markets where we can. This great company has been around for almost 100 years, and my objective is to set it up for success for decades to come.

STN: Blue Bird currently offers more fuel choices than any other school bus manufacturer. Why is this important especially in the current political environment?

Wyskiel: Blue Bird offers the widest powertrain portfolio in the markets diesel, gasoline, propane and, of course, electric. We believe there is no one answer for customers. They want choice for their districts. A broad product portfolio allows them to tailor the value proposition to their specific needs. It could be total cost of operation, overall durability, ease of refueling, or the advantages of zero emissions. And if you look at the current political environment, it is just a benefit to have the widest offering as we cover every area in the market regardless of where legislation ends up. Blue Bird undoubtedly has the broadest offering, our success in the marketplace validates our strategy.

Moving forward, I do hope to see a more predictable regulatory environment for our industry. Manufacturers need to plan years in advance and commit to product development and investment. So, directional stability is not simply helpful, it is essential. I think the move to zero emissions will continue to advance longer term, it just may take longer to get there. In the school bus market, it makes so much sense. The duty cycle fits electrification and charging, range is not an issue since school district routes are normally shorter, and zero emissions advances student health and performance.

STN: What is Blue Bird doing to strengthen the long-term health of the EPA’s Clean School Bus Program?

Wyskiel: The 2022 Clean School Bus Rebate Program is part of the Bipartisan Infrastructure Law, which provides a total of $5 billion over five years for clean school bus transportation. To date, the EPA has awarded almost $3 billion to fund approximately 9,000 school bus replacements, approximately 95 percent of which are zero-emission, battery-electric. Funding has been awarded to more than 1,300 school districts in nearly all 50 states and Washington, D.C.

There is no question the program had an overwhelmingly positive impact on children, communities and American manufacturing, bringing invaluable opportunities to school districts to transition their fleets to zero-emission school buses. Communities across the country have benefited from the reduction in diesel tailpipe emissions that can negatively impact student and community health. As the leader in low- and zero-emission school buses, we have communicated and promoted the benefit at all levels of government.

STN: Can you update us on the status of standard lap/shoulder seatbelts and other safety technology like driver airbags?

Wyskiel: Blue Bird is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team designs and manufactures school buses with a singular focus on safety, reliability and durability. School buses carry the most precious cargo in the world, 25 million children twice a day, making them the most trusted mode of student transportation.

Blue Bird made lap/shoulder belts standard on its buses late last year and the response has been overwhelmingly positive. Similarly, we will introduce airbags protecting drivers this fall. It’s a testimony to Blue Bird, whose school buses are designed, not adapted to the market, and whose focus on safety has been industry leading. If you could fast forward a decade, we will probably look back and wonder how school transportation didn’t include seatbelts and airbags all along. I am proud that Blue Bird has taken the lead role in this area.

STN: Thank you.

Editor’s Note: As reprinted in the May 2025 issue of School Transportation News.

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Related: (STN Podcast E259) Feel the Passion: Debates on Wi-Fi, Technology, Alternative Transportation & Safety
Related: Blue Bird Showcases Zero- and Low-Emission Commercial Vehicle Platforms at 2025 Advanced Clean Transportation (ACT) Expo
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