Blue Bird Corporation: Alternative Power Leadership And Replacement Demand Support Long-Term Growth
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ABI Invest283 FollowersFollow5ShareSavePlay(12min)CommentsSummaryBlue Bird Corporation is rated Buy, driven by favorable replacement cycles, disciplined pricing, and leadership in alternative power buses.BLBD's Q4 2025 results showed 17% revenue growth and significant margin expansion, supported by pricing actions and a higher EV mix.Backlog rebounded to nearly 4,000 units in Q1 FY26, reflecting deferred—not lost—demand after tariff-related uncertainty.Stock trades at a significant discount to historical P/E; multi-year growth tailwinds and margin improvement are expected from automation and alternative power adoption. Pgiam/iStock via Getty Images Investment Thesis Blue Bird Corporation’s (BLBD) growth should benefit from a favorable replacement cycle, pricing actions, and mix expansion of alternative power buses. While backlog exiting FY25 was at a lower level due to tariff-related pricing uncertainty, ordersThis article was written byABI Invest283 FollowersFollowI have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managing my own money and my purpose here is to share my views and benefit from the insights of the Seeking Alpha user community. Feel free to provide your feedback on my thesis in the comment section and I would love to have a discussion even if you have a variant view. My strategy is medium-term investing in ideas where there is a catalyst to unlock value and drive upside or short selling in case there is a downside catalyst. I also like to invest in growth stories available at a reasonable price. In terms of sector preferences, I am a generalist. However, I had spent most of my professional career analyzing industrial, consumer, and technology sectors. So, this is where I usually have higher conviction while investing.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.