MACON, Ga. - Blue Bird (NASDAQ:BLBD) Corporation (NASDAQ:BLBD), known for its electric and low-emission school buses, has announced the extension of its partnership with Ford (NYSE:F) Component Sales and ROUSH CleanTech through 2030. This collaboration is aimed at reinforcing Blue Bird's position in the market for low- and zero-emission student transportation solutions.
As a result of this agreement, Blue Bird will remain the sole manufacturer in the U.S. to offer propane- and gasoline-powered school buses that comply with upcoming stricter emission standards set for 2027.
Since the beginning of their partnership in 2012, Blue Bird has deployed over 40,000 alternative-fuel-powered school buses. These vehicles are powered by Ford's 7.3L V8 engine, which is known for its compact design, durability, and ease of maintenance. ROUSH CleanTech integrates this engine into Blue Bird's low-emission powertrain options for their propane- and gasoline-powered buses.
The current propane engines used in Blue Bird buses are 90 percent cleaner than the most stringent federal emission standards, according to the U.S. Environmental Protection Agency (EPA). With new emission standards scheduled to take effect in 2027, Blue Bird has already positioned its propane-powered buses to exceed these future requirements.
Britton Smith, president of Blue Bird Corporation, expressed excitement about the extension, emphasizing the company's unique position in providing propane- and gasoline-powered buses nationwide. Douglas Chase, director of OEM sales at Ford Component Sales, and Todd Mouw, executive vice president of sales at ROUSH CleanTech, also conveyed their enthusiasm for the continued partnership and its role in driving innovation and lowering emissions in the school bus industry.
The use of propane-powered school buses has been linked to significant cost savings for school districts and contractors, with potential savings of up to $3,700 per bus each year in fuel and maintenance costs. Currently, over 1.3 million students in more than 1,000 school districts are transported to school in propane-powered buses daily.
This announcement is based on a press release statement from Blue Bird Corporation.
InvestingPro Insights
Blue Bird Corporation (NASDAQ:BLBD) continues to make strides in the school bus industry with its focus on low- and zero-emission vehicles. In the financial realm, the company's market capitalization stands at a solid 1060M USD, reflecting investor confidence in its business model and growth prospects. Blue Bird's commitment to innovation and environmental standards is further underscored by an impressive revenue growth of 33.91% over the last twelve months as of Q1 2024. This growth is indicative of the increasing demand for cleaner transportation options in the school sector.
Investors have seen a substantial return with a 70.31% increase in the stock's price over the last year, as of the current date. This performance is a testament to the company's successful strategy and operational execution. The recent partnership extension with Ford Component Sales and ROUSH CleanTech is likely to bolster this trajectory, as it ensures Blue Bird's competitive edge in meeting future emission standards.
Looking at the company's valuation metrics, Blue Bird is trading at a high Price / Book multiple of 14.04, suggesting that the market has high expectations for the company's book value growth. This is complemented by a moderate Price/Earnings (P/E) ratio of 16.98, which could indicate that the stock is reasonably valued given its earnings outlook. An InvestingPro Tip highlights that analysts predict the company will be profitable this year, which aligns with Blue Bird's positive basic and diluted earnings per share (EPS) of 1.91 USD and 1.9 USD, respectively.
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