FORT VALLEY, Ga. - Blue Bird (NASDAQ:BLBD) Corporation (NASDAQ: BLBD), known for its electric and low-emission school buses, has been selected to receive an $80 million grant from the U.S. Department of Energy (DOE).
This grant is intended to enhance the company's electric vehicle production and workforce development. The funding is part of a broader $2 billion U.S. initiative aimed at converting automotive facilities to electric vehicle manufacturing, supporting jobs, and strengthening domestic supply chains.
The grant, which represents half of the $160 million needed for the project, will be used to transform a former diesel motorhome manufacturing site in Fort Valley, Ga., into a modern electric vehicle facility.
The site, which previously produced Wanderlodge motorhomes until 2019, will be repurposed to increase the production of Type-D electric school buses, responding to the growing demand for clean student transportation. The project is expected to create over 400 new manufacturing jobs.
U.S. Secretary of Energy Jennifer M. Granholm highlighted the importance of the grant in keeping the U.S. automotive industry competitive and maintaining jobs in communities with a long history of supporting the auto industry. Phil Horlock, CEO of Blue Bird Corporation, expressed gratitude for the DOE's support, emphasizing the investment in middle Georgia and the expansion of the workforce.
Blue Bird is the only U.S.-owned and operated school bus manufacturer, with nearly 2,000 zero-emission vehicles currently in service. The company aims to lead the shift towards cleaner student transportation, which aligns with its commitment to safety, reliability, and durability.
The announcement is based on a press release statement and is subject to final contract and funding negotiations between the DOE and Blue Bird, which could take up to 120 days to finalize.
In other recent news, Blue Bird Corporation, a leading manufacturer of electric and low-emission school buses, has announced a series of notable developments.
The company declared a significant upgrade in safety features for its vehicles, including three-point seat belts for all student passengers and a steering wheel deployed air bag for drivers. This safety overhaul, in collaboration with IMMI, also includes high-intensity LED lighting, high-resolution cameras, and enhanced visibility elements.
Analysts from Craig-Hallum and DA Davidson have raised their price targets on Blue Bird shares, reflecting the company's strong financial performance and market position, particularly in the electric school bus segment. Meanwhile, Barclays (LON:BARC) has maintained its Overweight rating on Blue Bird, highlighting the company's potential expansion due to its step van offering.
Blue Bird has also successfully negotiated a three-year collective bargaining agreement with the United Steelworkers union, enhancing employee offerings and reinforcing its reputation as a preferred employer in the industry.
In terms of leadership, the company has made strategic changes to its Sales and Marketing division, promoting several key personnel. These recent developments underline Blue Bird's commitment to advancing student transportation and its position in the market.
InvestingPro Insights
As Blue Bird Corporation (NASDAQ: BLBD) gears up to expand its electric vehicle production capabilities with the help of a significant DOE grant, the company's financial health and market performance provide additional insights for investors.
With a market cap of approximately $1.61 billion USD and a notable revenue growth of 26.17% in the last twelve months as of Q2 2024, Blue Bird showcases a strong trajectory in its financial metrics. The company's operating income margin stands at 9.69%, indicating a healthy balance between its revenue and the costs incurred during operations.
Investors interested in Blue Bird's future prospects should note that the company's stock has experienced a significant price uptick over the last six months, with a 93.99% total return, and an impressive 116.42% return over the last year. This performance is particularly noteworthy considering the volatile nature of the stock, as identified by InvestingPro Tips. The company has been profitable over the last twelve months, and analysts are optimistic about its net income growth this year.
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