BLUE BIRD CORP, 10-Q filed on 5/7/2025
Quarterly Report
v3.25.1
Document and Entity Information - shares
 6 Months Ended
Mar. 29, 2025
May 02, 2025
Document and Entity Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 29, 2025  
Document Transition Report false  
Entity File Number 001-36267  
Entity Registrant Name BLUE BIRD CORPORATION  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 46-3891989  
Entity Address, Address Line One 3920 Arkwright Road  
Entity Address, Address Line Two 2nd Floor  
Entity Address, City or Town Macon  
Entity Address, State or Province GA  
Entity Address, Postal Zip Code 31210  
City Area Code 478  
Local Phone Number 822-2801  
Title of 12(b) Security Common stock, $0.0001 par value  
Trading Symbol BLBD  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   31,565,453
Entity Central Index Key 0001589526  
Current Fiscal Year End Date --09-27  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.25.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 29, 2025
Sep. 28, 2024
Current assets    
Cash and cash equivalents $ 130,749 $ 127,687
Accounts receivable, net 15,786 59,099
Inventories 163,832 127,798
Other current assets 18,052 8,795
Total current assets 328,419 323,379
Property, plant and equipment, net 104,022 97,322
Goodwill 18,825 18,825
Intangible assets, net 42,620 43,554
Equity investment in affiliates 35,967 32,089
Deferred tax assets 5,075 2,399
Finance lease right-of-use assets 78 332
Pension 6,563 4,649
Other assets 2,129 2,345
Total assets 543,698 524,894
Current liabilities    
Accounts payable 153,730 143,156
Warranty 7,164 7,166
Accrued expenses 42,454 55,775
Deferred warranty income 10,281 9,421
Finance lease obligations 377 975
Other current liabilities 7,640 14,480
Current portion of long-term debt 5,000 5,000
Total current liabilities 226,646 235,973
Long-term liabilities    
Revolving credit facility 0 0
Long-term debt 87,661 89,994
Warranty 9,181 9,013
Deferred warranty income 20,167 18,541
Deferred tax liabilities 1,530 2,783
Finance lease obligations 0 6
Other liabilities 8,121 9,020
Total long-term liabilities 126,660 129,357
Guarantees, commitments and contingencies (Note 6)
Stockholders' equity    
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at March 29, 2025 and September 28, 2024 0 0
Common stock, $0.0001 par value, 100,000,000 shares authorized, 31,674,003 and 32,268,022 shares issued and outstanding at March 29, 2025 and September 28, 2024, respectively 3 3
Additional paid-in capital 191,985 185,977
Retained earnings 24,715 0
Accumulated other comprehensive loss (26,311) (26,416)
Total stockholders' equity 190,392 159,564
Total liabilities and stockholders' equity $ 543,698 $ 524,894
v3.25.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 29, 2025
Sep. 28, 2024
Statement of Financial Position [Abstract]    
Preferred Stock, Par Value (in dollars per share) $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par Value (in dollars per share) $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 100,000,000 100,000,000
Common Stock, Shares Outstanding 31,674,003 32,268,022
v3.25.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Income Statement [Abstract]        
Net sales $ 358,851 $ 345,915 $ 672,723 $ 663,575
Cost of goods sold 287,997 282,276 541,552 536,378
Gross profit 70,854 63,639 131,171 127,197
Operating expenses        
Selling, general and administrative expenses 37,143 27,571 64,418 53,173
Operating profit 33,711 36,068 66,753 74,024
Interest expense (1,813) (2,812) (3,728) (6,443)
Interest income 1,258 1,054 2,826 2,142
Other income (expense), net 444 (1,968) 3,360 (3,189)
Loss on debt refinancing 0 0 0 (1,558)
Income before income taxes 33,600 32,342 69,211 64,976
Income tax expense (9,129) (8,261) (17,822) (16,707)
Equity in net income of non-consolidated affiliates 1,575 1,942 3,379 3,904
Net income $ 26,046 $ 26,023 $ 54,768 $ 52,173
Earnings per share:        
Basic weighted average shares outstanding 31,917,407 32,240,458 32,072,354 32,205,657
Diluted weighted average shares outstanding 32,885,993 33,074,592 33,152,066 32,828,339
Basic earnings per share (in dollars per share) $ 0.82 $ 0.81 $ 1.71 $ 1.62
Diluted earnings per share (in dollars per share) $ 0.79 $ 0.79 $ 1.65 $ 1.59
v3.25.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net income $ 26,046 $ 26,023 $ 54,768 $ 52,173
Other comprehensive income, net of tax:        
Net change in defined benefit pension plan 52 131 105 262
Total other comprehensive income 52 131 105 262
Comprehensive income $ 26,098 $ 26,154 $ 54,873 $ 52,435
v3.25.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Cash flows from operating activities    
Net income $ 54,768 $ 52,173
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 7,710 7,255
Non-cash interest expense 167 219
Share-based compensation expense 9,940 4,543
Equity in net income of non-consolidated affiliates (3,379) (3,904)
Dividend from equity investment in affiliates 0 2,991
Loss on disposal of fixed assets 285 25
Deferred income tax (benefit) expense (3,962) 1,825
Amortization of deferred actuarial pension losses 139 344
Loss on debt refinancing 0 1,558
Changes in assets and liabilities:    
Accounts receivable 43,313 1,149
Inventories (36,034) (10,115)
Other assets (10,955) (10,016)
Accounts payable 9,929 2,298
Accrued expenses, pension and other liabilities (17,741) 4,426
Total adjustments (588) 2,598
Total cash provided by operating activities 54,180 54,771
Cash flows from investing activities    
Cash paid for fixed assets (13,616) (5,643)
Equity investment in affiliates (Note 12) (500) 0
Total cash used in investing activities (14,116) (5,643)
Cash flows from financing activities    
Revolving credit facility borrowings 0 36,220
Revolving credit facility repayments 0 (36,220)
Term loan borrowings 0 100,000
Term loan repayments (2,500) (133,050)
Principal payments on finance leases (604) (292)
Cash paid for debt costs 0 (3,128)
Repurchase of common stock in connection with repurchase program (Note 13) (30,053) 0
Repurchase of common stock in connection with stock award exercises (4,412) (301)
Cash received from stock option exercises 567 1,751
Total cash used in financing activities (37,002) (35,020)
Change in cash and cash equivalents 3,062 14,108
Cash and cash equivalents at beginning of period 127,687 78,988
Cash and cash equivalents at end of period 130,749 93,096
Supplemental disclosures of cash flow information    
Interest paid 4,048 5,820
Interest received (2,761) (2,142)
Income tax paid, net of tax refunds 30,695 9,443
Non-cash investing and financing activities:    
Changes in accounts payable for capital additions to property, plant and equipment 2,521 780
Warrants issued for equity investment in affiliate (note 12) 0 7,416
Right-of-use assets obtained in exchange for operating lease obligations $ 0 $ 1,241
v3.25.1
Consolidated Statement of Stockholders' Deficit Statement - USD ($)
Total
Common Stock
Additional Paid-In-Capital
Accumulated Other Comprehensive Loss
Retained Earnings (Accumulated Deficit)
Treasury Stock
Beginning Balance (in shares) at Sep. 30, 2023   32,165,225        
Beginning balance (in shares) at Sep. 30, 2023           1,782,568
Beginning Balance at Sep. 30, 2023 $ 39,998,000 $ 3,000 $ 177,861,000 $ (31,884,000) $ (55,700,000) $ (50,282,000)
Issuance of warrants (Note 12) 7,416,000   7,416,000      
Restricted stock activity (in shares)   22,115        
Restricted stock activity (301,000)   (301,000)      
Stock option activity (in shares)   111,725        
Stock option activity 1,751,000   1,751,000      
Share-based compensation expense 4,489,000   4,489,000      
Share repurchases (Note 13) 0          
Net income 52,173,000       52,173,000  
Other comprehensive income, net of tax 262,000     262,000    
Ending Balance (in shares) at Mar. 30, 2024   32,299,065        
Ending balance (in shares) at Mar. 30, 2024           1,782,568
Ending Balance at Mar. 30, 2024 105,788,000 $ 3,000 191,216,000 (31,622,000) (3,527,000) $ (50,282,000)
Beginning Balance (in shares) at Dec. 30, 2023   32,198,592        
Beginning balance (in shares) at Dec. 30, 2023           1,782,568
Beginning Balance at Dec. 30, 2023 75,577,000 $ 3,000 187,159,000 (31,753,000) (29,550,000) $ (50,282,000)
Stock option activity (in shares)   100,473        
Stock option activity 1,602,000   1,602,000      
Share-based compensation expense 2,455,000   2,455,000      
Net income 26,023,000       26,023,000  
Other comprehensive income, net of tax 131,000          
Other comprehensive income, net of tax 131,000     131,000    
Ending Balance (in shares) at Mar. 30, 2024   32,299,065        
Ending balance (in shares) at Mar. 30, 2024           1,782,568
Ending Balance at Mar. 30, 2024 105,788,000 $ 3,000 191,216,000 (31,622,000) (3,527,000) $ (50,282,000)
Beginning Balance (in shares) at Sep. 28, 2024   32,268,022        
Beginning balance (in shares) at Sep. 28, 2024           0
Beginning Balance at Sep. 28, 2024 159,564,000 $ 3,000 185,977,000 (26,416,000) 0 $ 0
Restricted stock activity (in shares)   168,852        
Restricted stock activity (4,412,000)   (4,412,000)      
Stock option activity (in shares)   39,931        
Stock option activity 567,000   567,000      
Share-based compensation expense $ 9,853,000   9,853,000      
Share repurchases (Note 13) (in shares) (802,802)          
Share repurchases (Note 13) $ (30,053,000)       (30,053,000)  
Net income 54,768,000       54,768,000  
Other comprehensive income, net of tax 105,000     105,000    
Ending Balance (in shares) at Mar. 29, 2025   31,674,003        
Ending balance (in shares) at Mar. 29, 2025           0
Ending Balance at Mar. 29, 2025 190,392,000 $ 3,000 191,985,000 (26,311,000) 24,715,000 $ 0
Beginning Balance (in shares) at Dec. 28, 2024   32,111,078        
Beginning balance (in shares) at Dec. 28, 2024           0
Beginning Balance at Dec. 28, 2024 179,705,000 $ 3,000 187,379,000 (26,363,000) 18,686,000 $ 0
Restricted stock activity (in shares)   111,432        
Restricted stock activity (2,966,000)   (2,966,000)      
Stock option activity (in shares)   10,845        
Stock option activity 182,000   182,000      
Share-based compensation expense $ 7,390,000   7,390,000      
Share repurchases (Note 13) (in shares) (559,352)          
Share repurchases (Note 13) $ (20,017,000)       (20,017,000)  
Net income 26,046,000       26,046,000  
Other comprehensive income, net of tax 52,000     52,000    
Ending Balance (in shares) at Mar. 29, 2025   31,674,003        
Ending balance (in shares) at Mar. 29, 2025           0
Ending Balance at Mar. 29, 2025 $ 190,392,000 $ 3,000 $ 191,985,000 $ (26,311,000) $ 24,715,000 $ 0
v3.25.1
Nature of Business and Basis of Presentation
 6 Months Ended
Mar. 29, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Basis of Presentation
1. Nature of Business and Basis of Presentation

Nature of Business

Blue Bird Body Company ("BBBC"), a wholly-owned subsidiary of Blue Bird Corporation, was incorporated in 1958 and has manufactured, assembled and sold school buses to a variety of municipal, federal and commercial customers since 1927. The majority of BBBC’s sales are made to an independent dealer network, which in turn sells buses to ultimate end users. References in these notes to condensed consolidated financial statements to “Blue Bird,” the “Company,” “we,” “our,” or “us” relate to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise. We are headquartered in Macon, Georgia.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and Article 10 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. The fiscal years ending September 27, 2025 ("fiscal 2025") and ended September 28, 2024 ("fiscal 2024") consist or consisted of 52 weeks. The second quarters of fiscal 2025 and fiscal 2024 both included 13 weeks. The six month periods in fiscal 2025 and 2024 both included 26 weeks.

In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The Condensed Consolidated Balance Sheet data as of September 28, 2024 was derived from the Company’s audited financial statements but does not include all disclosures required by U.S. GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes as of and for the fiscal year ended September 28, 2024 as set forth in the Company's fiscal 2024 Form 10-K filed with the Securities and Exchange Commission ("SEC") on November 25, 2024.

Impacts of Supply Chain Constraints on Our Business

The global automotive industry supply chain constraints that arose subsequent to the novel coronavirus pandemic known as "COVID-19" and that were further exacerbated by additional stress resulting from Russia’s invasion of Ukraine in February 2022 continued to impact our business and operations during the second quarters of fiscal 2024 and 2025. Specifically, they continued to result in higher purchasing costs, including freight costs incurred to deliver critical components, to procure the raw materials inventory needed to produce buses to fulfill sales orders. Additionally, there were still occasional shortages of certain critical components that limited the number and/or mix of school buses that we could produce and sell. Nonetheless, ongoing improvements in manufacturing operations that have resulted in the consistent production of buses, when coupled with periodic pricing actions taken to ensure that the increased sales prices charged for buses keep pace with increased costs to procure inventory to produce buses, have resulted in the Company reporting gross profit and gross margin in the second quarters of fiscal 2025 and 2024 that exceeded those reported in pre-pandemic fiscal years.

Significant uncertainty still exists concerning the magnitude and duration of the ongoing supply chain constraints and accordingly, precludes any prediction as to the ultimate severity of the adverse impacts on our business, financial condition, results of operations, and liquidity.

Use of Estimates and Assumptions

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported
amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory; the allowance for doubtful accounts; potential impairment of long-lived assets, goodwill and intangible assets; and the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including the extent and duration of continued supply chain constraints and their related economic impacts, and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used.
v3.25.1
Summary of Significant Accounting Policies and Recently Issued Accounting Standards
 6 Months Ended
Mar. 29, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Recently Issued Accounting Standards
2. Summary of Significant Accounting Policies and Recently Issued Accounting Standards

The Company’s significant accounting policies are described in the Company’s fiscal 2024 Form 10-K, filed with the SEC on November 25, 2024. Our senior management has reviewed these significant accounting policies and related disclosures and determined that there were no significant changes in our critical accounting policies in the six months ended March 29, 2025.

Recently Issued Accounting Standards

ASU 2023-07 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public business entities ("PBEs") to disclose information about their reportable segments’ significant expenses on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted.

ASU 2023-09 On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. PBEs are required to provide this incremental detail in a numerical, tabular format. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The ASU is effective for PBEs in fiscal years beginning after December 15, 2024, with early adoption permitted.

ASUs 2024-03 & 2025-01 On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires PBEs to disclose disaggregated information about certain income statement expense line items. On January 6, 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, to clarify the effective date of ASU 2024-03, which is for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027.

The new ASUs will not impact amounts recorded in the financial statements but instead, will require more detailed disclosures in the footnotes to the financial statements. The Company plans to provide the updated disclosures required by the ASUs in the periods in which they are effective.
v3.25.1
Supplemental Financial Information
 6 Months Ended
Mar. 29, 2025
Condensed Financial Information [Abstract]  
Supplemental Financial Information
3. Supplemental Financial Information

Inventories

The following table presents the components of inventories at the dates indicated:
(in thousands of dollars)March 29, 2025September 28, 2024
Raw materials$87,556 $83,027 
Work in process43,519 32,556 
Finished goods32,757 12,215 
Total inventories$163,832 $127,798 
Product Warranties

The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Balance at beginning of period$16,127 $15,283 $16,179 $15,434 
Add current period accruals2,698 2,512 5,236 4,853 
Current period reductions of accrual(2,480)(2,319)(5,070)(4,811)
Balance at end of period$16,345 $15,476 $16,345 $15,476 
Extended Warranties
The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years, for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Balance at beginning of period$29,559 $24,118 $27,962 $23,123 
Add current period deferred income3,337 3,562 7,266 6,560 
Current period recognition of income(2,448)(2,117)(4,780)(4,120)
Balance at end of period$30,448 $25,563 $30,448 $25,563 

The outstanding balance of deferred warranty income in the table above is considered a "contract liability," and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $5.2 million of the outstanding contract liability during the remainder of fiscal 2025, $9.4 million in fiscal 2026, and the remaining balance thereafter.

Self-Insurance

The following table reflects our total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:
(in thousands of dollars)March 29, 2025September 28, 2024
Current portion$4,427 $5,008 
Long-term portion2,389 2,248 
Total accrued self-insurance$6,816 $7,256 

The current and long-term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the Condensed Consolidated Balance Sheets.

Shipping and Handling Revenues

Shipping and handling revenues were $5.2 million and $5.0 million for the three months ended March 29, 2025 and March 30, 2024, respectively, and $10.3 million and $9.7 million for the six months ended March 29, 2025 and March 30, 2024, respectively. The related cost of goods sold was $4.7 million and $4.4 million for the three months ended March 29, 2025 and March 30, 2024, respectively, and $9.3 million and $8.7 million for the six months ended March 29, 2025 and March 30, 2024, respectively.
Pension (Income) Expense

Components of net periodic pension benefit (income) expense were as follows for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Interest cost$1,312 $1,484 $2,624 $2,968 
Expected return on plan assets(1,819)(1,620)(3,638)(3,240)
Amortization of prior loss69 172 139 344 
Net periodic pension benefit (income) expense
$(438)$36 $(875)$72 
Amortization of prior loss, recognized in other comprehensive income(69)(172)(139)(344)
Total recognized in net periodic pension benefit (income) expense and other comprehensive income
$(507)$(136)$(1,014)$(272)
v3.25.1
Debt
 6 Months Ended
Mar. 29, 2025
Debt Disclosure [Abstract]  
Debt
4. Debt

Term loan borrowings consisted of the following at the dates indicated:

(in thousands of dollars)March 29, 2025September 28, 2024
Term loan borrowings, net of deferred financing costs of $1,089 and $1,256, respectively
$92,661 $94,994 
Less: current portion of long-term debt5,000 5,000 
Long-term debt, net of current portion$87,661 $89,994 

Term loan borrowings are recognized on the Condensed Consolidated Balance Sheets at the unpaid principal balance, and are not subject to fair value measurement; however, given the variable rates on the loans, the Company estimates that the unpaid principal balance approximates fair value. If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy. At March 29, 2025 and September 28, 2024, $93.8 million and $96.3 million, respectively, were outstanding on the term loans.

At March 29, 2025 and September 28, 2024, the stated interest rates on the term loans were 6.2% and 6.9%, respectively. At March 29, 2025 and September 28, 2024, the weighted-average annual effective interest rates for the term loans were 6.7% and 8.2%, respectively, which include amortization of the deferred financing costs.

At March 29, 2025, $6.7 million of letters of credit were outstanding, which reduces the availability on the revolving line of credit. There were no borrowings outstanding on the Revolving Credit Facility; therefore, the Company would have been able to borrow $143.3 million on the revolving line of credit.

Interest expense on all indebtedness was $1.8 million and $2.8 million for the three months ended March 29, 2025 and March 30, 2024, respectively, and $3.7 million and $6.4 million for the six months ended March 29, 2025 and March 30, 2024, respectively.

The schedule of remaining principal payments through maturity for the term loans is as follows:
(in thousands of dollars)
Fiscal YearPrincipal Payments
2025$2,500 
20265,000 
20275,000 
20285,000 
202976,250 
Total remaining principal payments$93,750 
v3.25.1
Income Taxes
 6 Months Ended
Mar. 29, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
5. Income Taxes

Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items that are required to be discretely recognized within the current interim period. The effective tax rates in the periods presented are largely based upon the annual forecasted pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business, primarily in the United States of America ("U.S."). In periods where our pre-tax income approximates or is equal to break-even, the effective tax rates for quarter-to-date and full-year periods may not be meaningful due to discrete period items.

Three Months

The effective tax rate for the three months ended March 29, 2025 was 27.2% and differed from the statutory federal income tax rate of 21%. The increase was primarily due to the impacts from state taxes and certain permanent items on the federal rate, which were partially offset by the impacts from federal and state tax credits (net of valuation allowances) and discrete period items during the quarter.

The effective tax rate for the three months ended March 30, 2024 was 25.5% and differed from the statutory federal income tax rate of 21%. The increase was primarily due to the impacts from state taxes and certain permanent items on the federal rate, which were partially offset by the impacts from federal and state tax credits (net of valuation allowances) and discrete period items during the quarter.

Six Months

The effective tax rate for the six months ended March 29, 2025 was 25.8% and differed from the statutory federal income tax rate of 21%. The increase was primarily due to the impacts from state taxes and certain permanent items on the federal rate, which were partially offset by the impacts from federal and state tax credits (net of valuation allowances) and discrete period items during the quarter.

The effective tax rate for the six months ended March 30, 2024 was 25.7% and differed from the statutory federal income tax rate of 21%. The increase was primarily due to the impacts from state taxes and certain permanent items on the federal rate, which were partially offset by the impacts from federal and state tax credits (net of valuation allowances) and discrete period items during the period.
v3.25.1
Guarantees, Commitments and Contingencies
 6 Months Ended
Mar. 29, 2025
Commitments and Contingencies Disclosure [Abstract]  
Guarantees, Commitments and Contingencies
6. Guarantees, Commitments and Contingencies

Litigation

At March 29, 2025, the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial statements.

Environmental
The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes. Failure by the Company to comply with present and future regulations could subject it to future liabilities. In addition, such regulations could require the Company to acquire costly equipment or to incur other significant expenses to comply with environmental regulations. The Company is currently not involved in any material environmental proceedings and therefore, management believes that the resolution of pending environmental matters will not have a material adverse effect on the Company’s financial statements.
v3.25.1
Segment Information
 6 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Segment Information
7. Segment Information

We manage our business in two operating segments: (i) the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the U.S., Canada and in certain limited international markets; and (ii) the Parts segment, which consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network and certain large fleet customers. Management evaluates the segments based primarily upon revenues and gross profit, which are reflected in the tables below for the periods presented:

Net sales
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Bus (1)$332,712 $317,959 $620,859 $611,396 
Parts (1)26,139 27,956 51,864 52,179 
Segment net sales$358,851 $345,915 $672,723 $663,575 
(1)    Parts segment revenue includes $1.9 million and $2.7 million for the three months ended March 29, 2025 and March 30, 2024, respectively, and $3.8 million and $4.3 million for the six months ended March 29, 2025 and March 30, 2024, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.
Gross profit
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Bus$57,634 $49,589 $104,806 $100,883 
Parts13,220 14,050 26,365 26,314 
Segment gross profit$70,854 $63,639 $131,171 $127,197 

The following table is a reconciliation of segment gross profit to consolidated income before income taxes for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Segment gross profit$70,854 $63,639 $131,171 $127,197 
Adjustments:
Selling, general and administrative expenses(37,143)(27,571)(64,418)(53,173)
Interest expense(1,813)(2,812)(3,728)(6,443)
Interest income1,258 1,054 2,826 2,142 
Other income (expense), net
444 (1,968)3,360 (3,189)
Loss on debt refinancing
— — — (1,558)
Income before income taxes
$33,600 $32,342 $69,211 $64,976 

Sales are attributable to geographic areas based on customer location and were as follows for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
U.S.
$299,274 $316,583 $587,231 $619,115 
Canada59,471 29,058 84,074 44,177 
Rest of world106 274 1,418 283 
Total net sales$358,851 $345,915 $672,723 $663,575 
v3.25.1
Revenue
 6 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
8. Revenue

The following table disaggregates revenue by product category for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Diesel buses$117,611 $123,444 $241,983 $208,442 
Alternative power buses (1)199,462 180,162 348,384 375,491 
Other (2)16,285 14,991 31,772 28,688 
Parts25,493 27,318 50,584 50,954 
Net sales$358,851 $345,915 $672,723 $663,575 
(1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG") or electric).
(2) Includes shipping and handling revenue, extended warranty income, surcharges and chassis and bus shell sales.
v3.25.1
Earnings Per Share
 6 Months Ended
Mar. 29, 2025
Earnings Per Share [Abstract]  
Earnings Per Share
9. Earnings Per Share

The following table presents the earnings per share computation for the periods presented:
Three Months EndedSix Months Ended
(in thousands except for share data)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Numerator:
Net income
$26,046 $26,023 $54,768 $52,173 
Denominator:
Weighted-average common shares outstanding31,917,407 32,240,458 32,072,354 32,205,657 
Weighted-average dilutive securities, restricted stock432,673 390,498 475,526 283,078 
Weighted-average dilutive securities, stock options216,937 183,538 239,056 153,044 
Weighted-average dilutive securities, warrants
318,976 260,098 365,130 186,560 
Weighted-average shares and dilutive potential common shares (1)32,885,993 33,074,592 33,152,066 32,828,339 
Earnings per share:
Basic earnings per share
$0.82 $0.81 $1.71 $1.62 
Diluted earnings per share
$0.79 $0.79 $1.65 $1.59 
v3.25.1
Accumulated Other Comprehensive Loss
 6 Months Ended
Mar. 29, 2025
Equity [Abstract]  
Accumulated Other Comprehensive Loss
10. Accumulated Other Comprehensive Loss

The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)Defined Benefit Pension PlanTotal AOCLDefined Benefit Pension PlanTotal AOCL
March 29, 2025
Beginning Balance$(26,363)$(26,363)$(26,416)$(26,416)
Amounts reclassified and included in earnings69 69 139 139 
Total before taxes69 69 139 139 
Income taxes(17)(17)(34)(34)
Ending Balance March 29, 2025$(26,311)$(26,311)$(26,311)$(26,311)
March 30, 2024
Beginning Balance$(31,753)$(31,753)$(31,884)$(31,884)
Amounts reclassified and included in earnings172 172 344 344 
Total before taxes172 172 344 344 
Income taxes(41)(41)(82)(82)
Ending Balance March 30, 2024$(31,622)$(31,622)$(31,622)$(31,622)
v3.25.1
Stockholder Transaction Costs
 6 Months Ended
Mar. 29, 2025
Equity [Abstract]  
Stockholder Transaction Costs
11. Stockholder Transaction Costs

On December 14, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc. and Barclays Capital Inc., as representatives of the several underwriters and American Securities LLC ("Selling Stockholder"), pursuant to which Selling Stockholder agreed to sell 2,500,000 shares of common stock at a purchase price of $25.10 per share (“December Offering”).

On February 15, 2024, the Company entered into an underwriting agreement with Barclays Capital Inc., as representative of the several underwriters and Selling Stockholder, pursuant to which Selling Stockholder agreed to sell 4,042,650 shares of common stock at a purchase price of $32.90 per share (“February Offering,” and collectively with the December Offering,“Offerings”).

The Offerings were conducted pursuant to prospectus supplements, dated December 14, 2023 and February 15, 2024, respectively, both to the prospectus dated December 22, 2021 included in the Company’s registration statement on Form S-3 (File No. 333-261858) that was initially filed with the SEC on December 23, 2021.

The December Offering closed on December 19, 2023 and the February Offering closed on February 21, 2024. Although the Company did not sell any shares or receive any proceeds from the Offerings, it was required to pay certain expenses in connection with the Offerings that totaled approximately $1.9 million and $3.2 million for the three and six months ended March 30, 2024, respectively. The $1.9 million and $3.2 million of expense is included within other income (expense), net on the Condensed Consolidated Statements of Operations for the three and six months ended March 30, 2024, respectively. No such expense was incurred in the six months ended March 29, 2025.
13. Stockholders’ Equity

Share Repurchase Program and Common Stock Retirement

On January 31, 2024, the Board of Directors of the Company authorized and approved a share repurchase program for up to $60 million of outstanding shares of the Company’s common stock over a period of 24 months, expiring January 31, 2026. Under the share repurchase program, the Company may repurchase shares through open market purchases, privately negotiated transactions, accelerated share repurchase transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

During the three and six months ended March 29, 2025, the Company repurchased 559,352 and 802,802 shares of its common stock, respectively, for $20.0 million and $30.1 million, respectively, pursuant to the share repurchase plan. The Company constructively retired these shares immediately after repurchase, with the $20.0 million and $30.1 million amount paid in excess of the $0.0001 par value of each share recorded as a reduction in retained earnings. No such repurchases were made during the six months ended March 30, 2024. The total remaining authorization for future common stock repurchases under the Company's share repurchase program was $20.0 million as of March 29, 2025.
v3.25.1
Joint Ventures
 6 Months Ended
Mar. 29, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Joint Ventures
12. Equity Investment in Affiliates

The Company has made investments in the below entities and utilizes the equity method of accounting to record its interest in them as it does not have control to direct the activities that most significantly impact their financial performance based on the shared powers of the venture partners. The carrying amount of the equity method investments is adjusted for any contribution that the Company makes to them as well as for the Company’s proportionate share of net earnings or losses and any dividends received.

Micro Bird Holdings, Inc.

The Company holds a 50% equity interest in Micro Bird Holdings, Inc. ("Micro Bird"), our unconsolidated Canadian joint venture that produces Blue Bird Micro Bird by Girardin Type A buses in Drummondville, Quebec.

In recognizing the Company’s 50% portion of Micro Bird's net income or loss, the Company recorded equity in net income of non-consolidated affiliates on the Condensed Consolidated Statements of Operations totaling $2.0 million for each of the three months
ended March 29, 2025 and March 30, 2024, and $4.1 million and $3.9 million for the six months ended March 29, 2025 and March 30, 2024, respectively.

In December 2023, Micro Bird paid dividends to all common stockholders, with the Company's proportionate share totaling $3.0 million, gross of required withholding taxes. The dividend was recorded as a reduction in the balance of equity investment in affiliates on the Condensed Consolidated Balance Sheets and is presented as a cash inflow in the operating section of the Condensed Consolidated Statements of Cash Flows. No dividends were paid in the six months ended March 29, 2025.

At March 29, 2025 and September 28, 2024, the carrying value of the Company's investment in Micro Bird included within equity investment in affiliates on the Condensed Consolidated Balance Sheets was $28.5 million and $24.4 million, respectively.

Clean Bus Solutions, LLC

The Company holds a 50% equity interest in Clean Bus Solutions, LLC ("CBS"), our unconsolidated joint venture that provides a fleet-as-a-service ("FaaS") offering using electric school buses manufactured and sold by the Company. The service is offered to qualified customers of the Company by providing them with turnkey electrification solutions, including a wide product range consisting of, among others, electric school buses, financing of electric buses and supporting charging infrastructure, project planning and management, and fleet optimization.

During the six months ended March 29, 2025, the Company made a $0.5 million cash contribution to CBS, and during the six months ended March 30, 2024, the Company recorded the $7.4 million fair value of warrants it issued to the joint venture partner as its initial investment in CBS, both of which increased the balance of equity investment in affiliates on the Condensed Consolidated Balance Sheets.

In recognizing the Company’s 50% portion of CBS' net income or loss, the Company recorded $(0.4) million and $(0.7) million (losses) in equity in net income of non-consolidated affiliates on the Condensed Consolidated Statements of Operations for the three and six months ended March 29, 2025, respectively, while no amount was recorded in the six months ended March 30, 2024. CBS paid no dividends in any period.

At March 29, 2025 and September 28, 2024, the carrying value of the Company's investment in CBS included within equity investment in affiliates on the Condensed Consolidated Balance Sheets was $7.5 million and $7.7 million, respectively.
v3.25.1
Stockholders' Deficit
 6 Months Ended
Mar. 29, 2025
Equity [Abstract]  
Stockholders' Equity
11. Stockholder Transaction Costs

On December 14, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc. and Barclays Capital Inc., as representatives of the several underwriters and American Securities LLC ("Selling Stockholder"), pursuant to which Selling Stockholder agreed to sell 2,500,000 shares of common stock at a purchase price of $25.10 per share (“December Offering”).

On February 15, 2024, the Company entered into an underwriting agreement with Barclays Capital Inc., as representative of the several underwriters and Selling Stockholder, pursuant to which Selling Stockholder agreed to sell 4,042,650 shares of common stock at a purchase price of $32.90 per share (“February Offering,” and collectively with the December Offering,“Offerings”).

The Offerings were conducted pursuant to prospectus supplements, dated December 14, 2023 and February 15, 2024, respectively, both to the prospectus dated December 22, 2021 included in the Company’s registration statement on Form S-3 (File No. 333-261858) that was initially filed with the SEC on December 23, 2021.

The December Offering closed on December 19, 2023 and the February Offering closed on February 21, 2024. Although the Company did not sell any shares or receive any proceeds from the Offerings, it was required to pay certain expenses in connection with the Offerings that totaled approximately $1.9 million and $3.2 million for the three and six months ended March 30, 2024, respectively. The $1.9 million and $3.2 million of expense is included within other income (expense), net on the Condensed Consolidated Statements of Operations for the three and six months ended March 30, 2024, respectively. No such expense was incurred in the six months ended March 29, 2025.
13. Stockholders’ Equity

Share Repurchase Program and Common Stock Retirement

On January 31, 2024, the Board of Directors of the Company authorized and approved a share repurchase program for up to $60 million of outstanding shares of the Company’s common stock over a period of 24 months, expiring January 31, 2026. Under the share repurchase program, the Company may repurchase shares through open market purchases, privately negotiated transactions, accelerated share repurchase transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

During the three and six months ended March 29, 2025, the Company repurchased 559,352 and 802,802 shares of its common stock, respectively, for $20.0 million and $30.1 million, respectively, pursuant to the share repurchase plan. The Company constructively retired these shares immediately after repurchase, with the $20.0 million and $30.1 million amount paid in excess of the $0.0001 par value of each share recorded as a reduction in retained earnings. No such repurchases were made during the six months ended March 30, 2024. The total remaining authorization for future common stock repurchases under the Company's share repurchase program was $20.0 million as of March 29, 2025.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Pay vs Performance Disclosure        
Net income $ 26,046 $ 26,023 $ 54,768 $ 52,173
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 29, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Nature of Business and Basis of Presentation (Policies)
 6 Months Ended
Mar. 29, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and Article 10 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. The fiscal years ending September 27, 2025 ("fiscal 2025") and ended September 28, 2024 ("fiscal 2024") consist or consisted of 52 weeks. The second quarters of fiscal 2025 and fiscal 2024 both included 13 weeks. The six month periods in fiscal 2025 and 2024 both included 26 weeks.

In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The Condensed Consolidated Balance Sheet data as of September 28, 2024 was derived from the Company’s audited financial statements but does not include all disclosures required by U.S. GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes as of and for the fiscal year ended September 28, 2024 as set forth in the Company's fiscal 2024 Form 10-K filed with the Securities and Exchange Commission ("SEC") on November 25, 2024.
Use of Estimates and Assumptions
Use of Estimates and Assumptions

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported
amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory; the allowance for doubtful accounts; potential impairment of long-lived assets, goodwill and intangible assets; and the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including the extent and duration of continued supply chain constraints and their related economic impacts, and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used.
Recently Issued Accounting Standards and Recently Adopted Accounting Standards
Recently Issued Accounting Standards

ASU 2023-07 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public business entities ("PBEs") to disclose information about their reportable segments’ significant expenses on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted.

ASU 2023-09 On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. PBEs are required to provide this incremental detail in a numerical, tabular format. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The ASU is effective for PBEs in fiscal years beginning after December 15, 2024, with early adoption permitted.

ASUs 2024-03 & 2025-01 On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires PBEs to disclose disaggregated information about certain income statement expense line items. On January 6, 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, to clarify the effective date of ASU 2024-03, which is for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027.

The new ASUs will not impact amounts recorded in the financial statements but instead, will require more detailed disclosures in the footnotes to the financial statements. The Company plans to provide the updated disclosures required by the ASUs in the periods in which they are effective.
v3.25.1
Supplemental Financial Information (Tables)
 6 Months Ended
Mar. 29, 2025
Condensed Financial Information [Abstract]  
Inventories The following table presents the components of inventories at the dates indicated:
(in thousands of dollars)March 29, 2025September 28, 2024
Raw materials$87,556 $83,027 
Work in process43,519 32,556 
Finished goods32,757 12,215 
Total inventories$163,832 $127,798 
Product Warranties
The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Balance at beginning of period$16,127 $15,283 $16,179 $15,434 
Add current period accruals2,698 2,512 5,236 4,853 
Current period reductions of accrual(2,480)(2,319)(5,070)(4,811)
Balance at end of period$16,345 $15,476 $16,345 $15,476 
Extended Warranties
The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years, for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Balance at beginning of period$29,559 $24,118 $27,962 $23,123 
Add current period deferred income3,337 3,562 7,266 6,560 
Current period recognition of income(2,448)(2,117)(4,780)(4,120)
Balance at end of period$30,448 $25,563 $30,448 $25,563 
Self-Insurance
The following table reflects our total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:
(in thousands of dollars)March 29, 2025September 28, 2024
Current portion$4,427 $5,008 
Long-term portion2,389 2,248 
Total accrued self-insurance$6,816 $7,256 
Pension Expense
Components of net periodic pension benefit (income) expense were as follows for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Interest cost$1,312 $1,484 $2,624 $2,968 
Expected return on plan assets(1,819)(1,620)(3,638)(3,240)
Amortization of prior loss69 172 139 344 
Net periodic pension benefit (income) expense
$(438)$36 $(875)$72 
Amortization of prior loss, recognized in other comprehensive income(69)(172)(139)(344)
Total recognized in net periodic pension benefit (income) expense and other comprehensive income
$(507)$(136)$(1,014)$(272)
v3.25.1
Debt (Tables)
 6 Months Ended
Mar. 29, 2025
Debt Disclosure [Abstract]  
Schedule of Term Debt Instruments
Term loan borrowings consisted of the following at the dates indicated:

(in thousands of dollars)March 29, 2025September 28, 2024
Term loan borrowings, net of deferred financing costs of $1,089 and $1,256, respectively
$92,661 $94,994 
Less: current portion of long-term debt5,000 5,000 
Long-term debt, net of current portion$87,661 $89,994 
Schedule of Maturities of Long-term Debt
The schedule of remaining principal payments through maturity for the term loans is as follows:
(in thousands of dollars)
Fiscal YearPrincipal Payments
2025$2,500 
20265,000 
20275,000 
20285,000 
202976,250 
Total remaining principal payments$93,750 
v3.25.1
Segment Information (Tables)
 6 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment Management evaluates the segments based primarily upon revenues and gross profit, which are reflected in the tables below for the periods presented:
Net sales
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Bus (1)$332,712 $317,959 $620,859 $611,396 
Parts (1)26,139 27,956 51,864 52,179 
Segment net sales$358,851 $345,915 $672,723 $663,575 
(1)    Parts segment revenue includes $1.9 million and $2.7 million for the three months ended March 29, 2025 and March 30, 2024, respectively, and $3.8 million and $4.3 million for the six months ended March 29, 2025 and March 30, 2024, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.
Gross profit
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Bus$57,634 $49,589 $104,806 $100,883 
Parts13,220 14,050 26,365 26,314 
Segment gross profit$70,854 $63,639 $131,171 $127,197 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The following table is a reconciliation of segment gross profit to consolidated income before income taxes for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Segment gross profit$70,854 $63,639 $131,171 $127,197 
Adjustments:
Selling, general and administrative expenses(37,143)(27,571)(64,418)(53,173)
Interest expense(1,813)(2,812)(3,728)(6,443)
Interest income1,258 1,054 2,826 2,142 
Other income (expense), net
444 (1,968)3,360 (3,189)
Loss on debt refinancing
— — — (1,558)
Income before income taxes
$33,600 $32,342 $69,211 $64,976 
Revenue from External Customers by Geographic Areas
Sales are attributable to geographic areas based on customer location and were as follows for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
U.S.
$299,274 $316,583 $587,231 $619,115 
Canada59,471 29,058 84,074 44,177 
Rest of world106 274 1,418 283 
Total net sales$358,851 $345,915 $672,723 $663,575 
v3.25.1
Revenue (Tables)
 6 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table disaggregates revenue by product category for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Diesel buses$117,611 $123,444 $241,983 $208,442 
Alternative power buses (1)199,462 180,162 348,384 375,491 
Other (2)16,285 14,991 31,772 28,688 
Parts25,493 27,318 50,584 50,954 
Net sales$358,851 $345,915 $672,723 $663,575 
(1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG") or electric).
(2) Includes shipping and handling revenue, extended warranty income, surcharges and chassis and bus shell sales
v3.25.1
Earnings Per Share (Tables)
 6 Months Ended
Mar. 29, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table presents the earnings per share computation for the periods presented:
Three Months EndedSix Months Ended
(in thousands except for share data)March 29, 2025March 30, 2024March 29, 2025March 30, 2024
Numerator:
Net income
$26,046 $26,023 $54,768 $52,173 
Denominator:
Weighted-average common shares outstanding31,917,407 32,240,458 32,072,354 32,205,657 
Weighted-average dilutive securities, restricted stock432,673 390,498 475,526 283,078 
Weighted-average dilutive securities, stock options216,937 183,538 239,056 153,044 
Weighted-average dilutive securities, warrants
318,976 260,098 365,130 186,560 
Weighted-average shares and dilutive potential common shares (1)32,885,993 33,074,592 33,152,066 32,828,339 
Earnings per share:
Basic earnings per share
$0.82 $0.81 $1.71 $1.62 
Diluted earnings per share
$0.79 $0.79 $1.65 $1.59 
v3.25.1
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Mar. 29, 2025
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented:
Three Months EndedSix Months Ended
(in thousands of dollars)Defined Benefit Pension PlanTotal AOCLDefined Benefit Pension PlanTotal AOCL
March 29, 2025
Beginning Balance$(26,363)$(26,363)$(26,416)$(26,416)
Amounts reclassified and included in earnings69 69 139 139 
Total before taxes69 69 139 139 
Income taxes(17)(17)(34)(34)
Ending Balance March 29, 2025$(26,311)$(26,311)$(26,311)$(26,311)
March 30, 2024
Beginning Balance$(31,753)$(31,753)$(31,884)$(31,884)
Amounts reclassified and included in earnings172 172 344 344 
Total before taxes172 172 344 344 
Income taxes(41)(41)(82)(82)
Ending Balance March 30, 2024$(31,622)$(31,622)$(31,622)$(31,622)
v3.25.1
Supplemental Financial Information - Inventories (Details) - USD ($)
$ in Thousands
Mar. 29, 2025
Sep. 28, 2024
Condensed Financial Information [Abstract]    
Raw materials $ 87,556 $ 83,027
Work in process 43,519 32,556
Finished goods 32,757 12,215
Total inventories $ 163,832 $ 127,798
v3.25.1
Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Movement in Standard Product Warranty Accrual [Roll Forward]        
Balance at beginning of period $ 16,127 $ 15,283 $ 16,179 $ 15,434
Add current period accruals 2,698 2,512 5,236 4,853
Current period reductions of accrual (2,480) (2,319) (5,070) (4,811)
Balance at end of period $ 16,345 $ 15,476 $ 16,345 $ 15,476
v3.25.1
Supplemental Financial Information - Extended Warranty Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Movement in Extended Product Warranty Accrual [Roll Forward]        
Balance at beginning of period $ 29,559 $ 24,118 $ 27,962 $ 23,123
Add current period deferred income 3,337 3,562 7,266 6,560
Current period recognition of income (2,448) (2,117) (4,780) (4,120)
Balance at end of period $ 30,448 $ 25,563 $ 30,448 $ 25,563
v3.25.1
Supplemental Financial Information Remaining Performance Obligation (Details)
$ in Millions
Mar. 29, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-30  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 5.2
Revenue, performance obligation, (in years) 6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-28  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 9.4
Revenue, performance obligation, (in years) 1 year
v3.25.1
Supplemental Financial Information - Self Insurance (Details) - USD ($)
$ in Thousands
Mar. 29, 2025
Sep. 28, 2024
Condensed Financial Information [Abstract]    
Current portion $ 4,427 $ 5,008
Long-term portion 2,389 2,248
Total accrued self-insurance $ 6,816 $ 7,256
v3.25.1
Supplemental Financial Information - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Product Warranty Liability [Line Items]        
Shipping and handling revenues $ 358,851 $ 345,915 $ 672,723 $ 663,575
Minimum        
Product Warranty Liability [Line Items]        
Extended product warranty, period     2 years  
Maximum        
Product Warranty Liability [Line Items]        
Extended product warranty, period     5 years  
Shipping and Handling        
Product Warranty Liability [Line Items]        
Shipping and handling revenues 5,200 5,000 $ 10,300 9,700
Shipping and handling cost of goods sold $ 4,700 $ 4,400 $ 9,300 $ 8,700
v3.25.1
Supplemental Financial Information - Pension Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Condensed Financial Information [Abstract]        
Interest cost $ 1,312 $ 1,484 $ 2,624 $ 2,968
Expected return on plan assets (1,819) (1,620) (3,638) (3,240)
Amortization of prior loss 69 172 139 344
Net periodic pension benefit (income) expense (438) 36 (875) 72
Amortization of prior loss, recognized in other comprehensive income (69) (172) (139) (344)
Total recognized in net periodic pension benefit (income) expense and other comprehensive income $ (507) $ (136) $ (1,014) $ (272)
v3.25.1
Debt - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Sep. 28, 2024
Debt Instrument [Line Items]          
Interest expense $ 1,800,000 $ 2,800,000 $ 3,700,000 $ 6,400,000  
Senior Term Loan | Senior Credit Facility          
Debt Instrument [Line Items]          
Long-term line of credit $ 93,800,000   $ 93,800,000   $ 96,300,000
Stated interest rate (as a percent) 6.20%   6.20%   6.90%
Weighted average effective interest rate (as a percent) 6.70%   6.70%   8.20%
Letters of Credit | Line of Credit | Senior Revolving Credit Facility          
Debt Instrument [Line Items]          
Remaining borrowing capacity $ 143,300,000   $ 143,300,000    
Letters of credit, amount outstanding 6,700,000   6,700,000    
Revolving credit facility | Line of Credit | Senior Revolving Credit Facility          
Debt Instrument [Line Items]          
Letters of credit, amount outstanding $ 0   $ 0    
v3.25.1
Debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Mar. 29, 2025
Sep. 28, 2024
Debt Instrument [Line Items]    
Current portion of long-term debt $ 5,000 $ 5,000
Long-term debt 87,661 89,994
Senior Term Loan | 2023 Term Loan    
Debt Instrument [Line Items]    
Total debt 92,661 94,994
Deferred financing costs $ 1,089 $ 1,256
v3.25.1
Debt - Maturity Schedule (Details)
$ in Thousands
Mar. 29, 2025
USD ($)
Long-term Debt, Fiscal Year Maturity  
2025 $ 2,500
2026 5,000
2027 5,000
2028 5,000
2029 76,250
Total debt $ 93,750
v3.25.1
Income Taxes (Details)
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Income Tax Disclosure [Abstract]        
Effective tax rate (as a percent) 27.20% 25.50% 25.80% 25.70%
Statutory Federal income tax rate (as a percent) 21.00% 21.00% 21.00% 21.00%
v3.25.1
Segment Information (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
USD ($)
Mar. 30, 2024
USD ($)
Mar. 29, 2025
USD ($)
segment
Mar. 30, 2024
USD ($)
Segment Reporting Information [Line Items]        
Number of Operating Segments | segment     2  
Net sales $ 358,851 $ 345,915 $ 672,723 $ 663,575
Gross profit 70,854 63,639 131,171 127,197
U.S.        
Segment Reporting Information [Line Items]        
Net sales 299,274 316,583 587,231 619,115
Canada        
Segment Reporting Information [Line Items]        
Net sales 59,471 29,058 84,074 44,177
Rest of world        
Segment Reporting Information [Line Items]        
Net sales 106 274 1,418 283
Operating Segments        
Segment Reporting Information [Line Items]        
Gross profit 70,854 63,639 131,171 127,197
Operating Segments | Bus        
Segment Reporting Information [Line Items]        
Net sales 332,712 317,959 620,859 611,396
Gross profit 57,634 49,589 104,806 100,883
Operating Segments | Parts        
Segment Reporting Information [Line Items]        
Net sales 26,139 27,956 51,864 52,179
Gross profit 13,220 14,050 26,365 26,314
Intersegment Eliminations | Parts        
Segment Reporting Information [Line Items]        
Net sales $ 1,900 $ 2,700 $ 3,800 $ 4,300
v3.25.1
Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Segment gross profit $ 70,854 $ 63,639 $ 131,171 $ 127,197
Selling, general and administrative expenses (37,143) (27,571) (64,418) (53,173)
Interest expense (1,813) (2,812) (3,728) (6,443)
Interest income 1,258 1,054 2,826 2,142
Other income (expense), net 444 (1,968) 3,360 (3,189)
Loss on debt refinancing 0 0 0 (1,558)
Income before income taxes 33,600 32,342 69,211 64,976
Operating Segments        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Segment gross profit 70,854 63,639 131,171 127,197
Segment Reconciling Items        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Selling, general and administrative expenses (37,143) (27,571) (64,418) (53,173)
Interest expense (1,813) (2,812) (3,728) (6,443)
Interest income 1,258 1,054 2,826 2,142
Other income (expense), net 444 (1,968) 3,360 (3,189)
Loss on debt refinancing $ 0 $ 0 $ 0 $ (1,558)
v3.25.1
Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Disaggregation of Revenue [Line Items]        
Net sales $ 358,851 $ 345,915 $ 672,723 $ 663,575
Diesel buses        
Disaggregation of Revenue [Line Items]        
Net sales 117,611 123,444 241,983 208,442
Alternative fuel buses        
Disaggregation of Revenue [Line Items]        
Net sales 199,462 180,162 348,384 375,491
Other        
Disaggregation of Revenue [Line Items]        
Net sales 16,285 14,991 31,772 28,688
Parts        
Disaggregation of Revenue [Line Items]        
Net sales $ 25,493 $ 27,318 $ 50,584 $ 50,954
v3.25.1
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Net income $ 26,046 $ 26,023 $ 54,768 $ 52,173
Weighted-average common shares outstanding 31,917,407 32,240,458 32,072,354 32,205,657
Weighted average diluted securities, warrants 216,937 183,538 239,056 153,044
Weighted-average shares and dilutive potential common shares 32,885,993 33,074,592 33,152,066 32,828,339
Basic earnings per share (in dollars per share) $ 0.82 $ 0.81 $ 1.71 $ 1.62
Diluted earnings per share (in dollars per share) $ 0.79 $ 0.79 $ 1.65 $ 1.59
Restricted Stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted-average dilutive securities 432,673 390,498 475,526 283,078
Options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted-average dilutive securities 318,976 260,098 365,130 186,560
v3.25.1
Earnings Per Share - Narrative (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Earnings Per Share [Abstract]      
Anti-dilutive securities excluded from computation of earnings per share (in shares) 0.1 0.0 0.0
v3.25.1
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance     $ 159,564  
Ending Balance $ 190,392   190,392  
Defined Benefit Pension Plan        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance (26,363) $ (31,753) (26,416) $ (31,884)
Amounts reclassified and included in earnings 69 172 139 344
Total before taxes 69 172 139 344
Income taxes (17) (41) (34) (82)
Ending Balance (26,311) (31,622) (26,311) (31,622)
AOCI Attributable to Parent        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance (26,363) (31,753) (26,416) (31,884)
Amounts reclassified and included in earnings 69 172 139 344
Total before taxes 69 172 139 344
Income taxes (17) (41) (34) (82)
Ending Balance $ (26,311) $ (31,622) $ (26,311) $ (31,622)
v3.25.1
Stockholder Transaction Costs (Details) - USD ($)
 3 Months Ended 6 Months Ended
Feb. 15, 2024
Dec. 14, 2023
Mar. 29, 2025
Mar. 30, 2024
Mar. 30, 2024
Subsidiary, Sale of Stock [Line Items]          
Common stock sold, price per share (in USD per share) $ 32.90 $ 25.10      
Accrue common stock issuance costs     $ 0 $ 1,900,000 $ 3,200,000
Private Placement          
Subsidiary, Sale of Stock [Line Items]          
Common stock sold (in shares) 4,042,650 2,500,000      
v3.25.1
Joint Ventures (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended
Dec. 30, 2023
Mar. 29, 2025
Mar. 30, 2024
Mar. 29, 2025
Mar. 30, 2024
Sep. 28, 2024
Schedule of Equity Method Investments [Line Items]            
Equity in net income of consolidated affiliates   $ 2,000,000 $ 2,000,000      
Equity in net income of non-consolidated affiliates   1,575,000 $ 1,942,000 $ 3,379,000 $ 3,904,000  
Equity investment in affiliates   $ 35,967,000   35,967,000   $ 32,089,000
Equity investment in affiliates (Note 12)       $ 500,000 0  
Micro Bird Holdings Inc.            
Schedule of Equity Method Investments [Line Items]            
Equity interest in equity method investment (as a percent)   50.00%   50.00%    
Equity in net income of non-consolidated affiliates       $ 4,100,000 3,900,000  
Equity investment in affiliates   $ 28,500,000   $ 28,500,000   24,400,000
Clean Bus Solutions (CBS)            
Schedule of Equity Method Investments [Line Items]            
Equity interest in equity method investment (as a percent)   50.00%   50.00%    
Equity in net income of non-consolidated affiliates   $ (400,000)   $ (700,000) 0  
Dividends       0 0  
Equity investment in affiliates   7,500,000   7,500,000   $ 7,700,000
Fair value of warrants         $ 7,400,000  
Equity investment in affiliates (Note 12)       $ 500,000    
Related party            
Schedule of Equity Method Investments [Line Items]            
Dividends $ 3,000,000 $ 0        
v3.25.1
Stockholders' Equity - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Mar. 29, 2025
Mar. 29, 2025
Mar. 30, 2024
Sep. 28, 2024
Jan. 31, 2024
Equity [Abstract]          
Authorized amount         $ 60,000,000
Term of share repurchase program   24 months      
Share repurchases (Note 13) (in shares) 559,352 802,802      
Share repurchases (Note 13) $ 20,017,000 $ 30,053,000 $ 0    
Common Stock, Par Value (in dollars per share) $ 0.0001 $ 0.0001   $ 0.0001  
Remaining authorized repurchase amount $ 20,000,000.0 $ 20,000,000.0