Blue Bird Corp (NASDAQ:BLBD) stock surges 14.26% (As on December 12, 11:39:32 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth-quarter financial results and increased full-year 2024 revenue guidance. The Blue Bird team executed a rigorous transformational plan over the past two years to improve operations and throughput, control fixed costs, recover economics through pricing and expand the leadership position in alternative-powered buses. The market demand for Blue Bird’s school buses remains very strong with approximately 4,600 units in our order backlog. Unit sales in the year were up 25% from a year ago and the company grew revenue by an exceptional 41%, to a record $1.13 billion. Adjusted EBITDA was a record $88 million, which is an outstanding increase of $103 million compared with last year, while the Adjusted Free Cash Flow in 2023 was another record high and $144 million better than last year.

Further, in expanding the leadership position in alternative-powered school buses, the company achieved outstanding growth in zero-emission EV unit sales, which more than doubled from last year. Additionally, at fiscal year end, the company had almost 600 electric school bus orders in the backlog, representing a 12% mix. The company have seen strong growth in EV orders from the EPA’s Clean School Bus Program, which awarded nearly $1 billion in funding from Phase 1 of the program in 2023. The company is excited to see the launch of Phase 2 (A and B) of the 5-year program, offering a combined $900M+ in grant and rebate funding for electric school buses.

BLBD in the fourth quarter of FY 23 has reported the adjusted earnings per share of 66 cents, beating the analysts’ estimates for the adjusted earnings per share of 47 cents. The company had reported the adjusted revenue growth of 17.6 percent to $302.96 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $290.11 million. Net income was $18.6 million for the fourth quarter of fiscal 2023, which was a $41.7 million increase compared with the same period last year.

Blue Bird increased its full-year 2024 revenue guidance to between $1.15 billion and $1.25 billion, versus the $1.12 billion estimate. The company stated it is reconfirming its long-term outlook of profitable growth towards approximately $2 billion in revenues and adjusted EBITDA margins of 12%+.

The company also increased its full-year 2024 adjusted EBITDA outlook to $115 million or approximately a 10% margin.