Aebi Schmidt Group achieves significant step-up in profitability following the integration of the Shyft Group; strong order momentum and continued backlog growth

Core Insights - Aebi Schmidt Group reports a significant increase in profitability following the acquisition of the Shyft Group, with a focus on integration and realizing expected synergies [1][3][6] Financial Performance - The company achieved net sales of $471 million in Q3 2025, a 3% increase year-over-year, with a strong order backlog exceeding $1.1 billion [3][4] - Adjusted EBITDA reached $42.2 million, reflecting a 25% year-over-year increase and a margin improvement of 160 basis points to 9.0% [3][4] - The order intake surged by 33% year-over-year, with a notable 79.3% increase in legacy Shyft orders due to recovering demand [4][3] Regional Performance - Sales in Europe and the Rest of the World increased by 14.6% to $135.4 million, while North American sales remained flat at $336 million, impacted by a decline in legacy Shyft sales [4][3] Strategic Outlook - The company aims for revenues of $3 billion and a mid-teens Adjusted EBITDA margin, with expectations of continued growth and market share expansion [6][5] - Aebi Schmidt anticipates strong positive cash flow in Q4 2025, with leverage expected to drop below 3.0x by year-end 2025 and below 2.0x by year-end 2026 [5][6] Operational Efficiency - The company is focused on improving working capital efficiency, particularly in collections and inventory management, to support significant sales growth [5][6] - Net working capital improved by 7.3% year-over-year, while net debt increased by 5.0% due to non-recurring transaction expenses and high working capital needs [4][5]