Blue Bird names new CEO and Chairman

MACON, Ga. - Blue Bird (NASDAQ:BLBD) Corporation (NASDAQ:BLBD), a notable player in the electric and low-emission school bus market, has announced leadership changes with Britton Smith set to become President & CEO on September 29, 2024, and Doug Grimm taking over as Chairman of the Board effective immediately.

Smith, who has been with Blue Bird since 2022 and served as President since June 2023, will succeed Phil Horlock. Horlock, who has been at the helm since 2011 and returned to the role in May 2023, will remain on the Board to assist with the transition. Smith's elevation to CEO is the culmination of a detailed transition plan, following his successful oversight of the company's electric vehicle (EV) segment and growth strategy.

Horlock praised Smith's qualifications and readiness for the CEO role, highlighting the successful execution of their transition plan. He also expressed gratitude to the Blue Bird team and dealers for their role in making the company a leader in alternative-powered school buses.

In conjunction with the CEO transition, Grimm will replace Kevin Penn as Chairman. Penn, who has filled the role since 2016, will continue as a member of the Board. Grimm, who joined the Board in 2017, acknowledged the company's transformation and leadership position, expressing enthusiasm for Blue Bird's continued growth.

In other recent news, Blue Bird Corp has seen significant developments in its business strategy and market positioning. Needham maintained a Buy rating on the company and raised its price target to $65, reflecting optimism about the growth of the electric school bus market and Blue Bird's strong position within the industry. The company also announced a partnership with IMMI to introduce advanced safety features on its vehicles from 2024, which includes three-point seat belts for all passengers and a steering wheel deployed airbag for drivers.

Craig-Hallum and DA Davidson also raised their price targets on Blue Bird shares, indicating the company's robust financial performance and market position, especially in the electric school bus segment. Barclays maintained its Overweight rating on Blue Bird, highlighting the company's market expansion due to its step van offering.

Blue Bird successfully negotiated a three-year collective bargaining agreement with the United Steelworkers union, enhancing employee offerings and reinforcing its reputation as a preferred employer. The company also announced strategic changes in its Sales and Marketing division, promoting several individuals to key roles. These are the recent developments that mark a significant period for Blue Bird.

InvestingPro Insights

As Blue Bird Corporation (NASDAQ:BLBD) gears up for a leadership transition with an eye on furthering its growth in the electric vehicle segment, the company's financial health and market performance provide a canvas for understanding its potential trajectory. Here are some key insights from InvestingPro that shed light on Blue Bird's current standing:

According to recent metrics, Blue Bird boasts a robust market capitalization of $1.56 billion, reflecting investor confidence in the company's market position and future prospects. The company's revenue growth has been impressive, with a 26.17% increase over the last twelve months as of Q2 2024, signaling strong sales performance and market demand for its products. Additionally, Blue Bird's operating income margin stands at a healthy 9.69%, indicating efficient management of its operations and cost structure.

From an investment standpoint, one of the InvestingPro Tips highlights that Blue Bird's stock price movements have exhibited considerable volatility, which may appeal to certain investors looking for dynamic trading opportunities. Moreover, analysts have a positive outlook on the company's profitability, with revisions to earnings estimates trending upwards for the upcoming period. This optimism is further supported by the company's strong return on assets of 19.53%, showcasing its ability to generate profits from its asset base.

For those seeking more in-depth analysis and additional InvestingPro Tips, there are currently 12 more tips available on the company's profile, which can be accessed through InvestingPro's dedicated portal for Blue Bird (https://www.investing.com/pro/BLBD).

As Blue Bird continues to navigate the competitive landscape of electric and low-emission school buses, these financial metrics and expert insights will be essential for stakeholders and potential investors to monitor the company's performance and strategic direction under the new leadership.

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