Financial Data and Key Metrics Changes - The company reported sales of $204.6 million for Q1 2025, a 3% increase from $197.9 million in the prior year [15] - Adjusted EBITDA for the quarter was $12.3 million, representing 6% of sales, up from $6.1 million or 3.1% of sales in Q1 2024 [16] - GAAP net loss was $1.4 million or negative $0.04 per share, compared to a net loss of $4.7 million or negative $0.14 per share in the previous year [15][16] Business Line Data and Key Metrics Changes - Fleet Vehicles and Services segment achieved sales of $96.1 million, down 11% from $107.8 million a year ago, reflecting softness in parcel end markets [17] - Specialty Vehicles segment delivered sales of $82.2 million, a 9% decrease from $90.1 million in the prior year, with adjusted EBITDA margins remaining in the high teens [18] Market Data and Key Metrics Changes - The FES backlog was $245.3 million at quarter end, down 31% versus the prior year and flat compared to year-end 2024 [18] - Specialty Vehicles backlog was $90 million at quarter end, up 8% versus the prior year and up 31% versus year-end, driven primarily by high content service truck bodies [19] Company Strategy and Development Direction - The company is focused on customer-centric innovation and expanding its product portfolio, particularly in electric vehicles and service trucks [6][10] - The proposed merger with Abbe Schmidt is expected to create a leading global force in the specialty vehicles industry, driving growth in high-margin markets [23][24] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the timing of recovery in the parcel and motorhome markets but expects approximately 70% of full-year adjusted EBITDA to be delivered in the second half of the year [21] - The company is affirming its 2025 outlook with sales projected between $870 million to $970 million and adjusted EBITDA of $62 million to $72 million [20][21] Other Important Information - The company incurred $2.2 million in transaction costs related to the proposed merger with Abbe Schmidt [16] - The merger is anticipated to be approved in a special meeting of shareholders in mid-2025 [24] Q&A Session Summary Question: Update on BlueArc vehicle orders and revenue - Management confirmed that the order for 150 vehicles for FedEx is in process, with some revenue carryover expected into Q2 [29] Question: Impact of tariffs on guidance - Management stated that they are closely monitoring tariffs and have implemented pricing strategies to mitigate risks, which is reflected in their unchanged guidance [31][34] Question: Trends in Abbe Schmidt's business - Management refrained from commenting on Abbe Schmidt's financials as the S-four filing is still with the SEC [37] Question: Customer order timing related to tariffs - Management indicated that there was no significant pull-forward of orders due to tariff concerns [41] Question: Outlook for parcel and final mile vehicles - Management noted an increase in quoting activity from parcel customers, suggesting a potentially better second half of the year [43] Question: Update on battery supply chain - Management expressed confidence in the battery supply chain, stating that performance is meeting expectations and there are no issues in the field [49]

Company Overview - The Shyft Group, Inc. is a leader in specialty vehicle manufacturing, assembly, and upfit for commercial, retail, and service specialty vehicle markets in North America [4] - Shyft operates two core business units: Shyft Fleet Vehicles and Services™ and Shyft Specialty Vehicles™ [4] - The company reported sales of $786 million in 2024 and employs approximately 2,900 people across various facilities [4] Merger Announcement - Aebi Schmidt Group has filed a registration statement on Form S-4 with the SEC regarding a proposed merger with Shyft [1][2] - The merger is expected to close in mid-2025, subject to SEC approval and shareholder approval from Shyft [2] - Upon completion, the combined company will be named Aebi Schmidt Group and will trade on Nasdaq under the ticker symbol "AEBI" [3][7] Financial Projections - The registration statement includes pro forma U.S. GAAP financial results for 2024, projecting combined revenues of $1.9 billion and adjusted EBITDA of $148 million [2][7] Aebi Schmidt Group Overview - Aebi Schmidt is a global leader in intelligent solutions for infrastructure maintenance, generating over 1 billion EUR in net sales in 2024 [5] - The company employs around 3,000 people and operates in 16 sales organizations and over a dozen production facilities worldwide [5]

Financial Data and Key Metrics Changes - The company reported Q4 sales of $201.4 million, slightly down from $202.3 million in the prior year [12] - GAAP net loss was $3.4 million or $0.1 per share, an improvement from a net loss of $4.4 million or $0.13 per share in the previous year [12] - Adjusted EBITDA for the quarter was $15.9 million or 7.9% of sales, up from $2.3 million or 1.1% of sales in Q4 2023 [13] - Adjusted net income for the quarter was $5 million, with adjusted EPS increasing to $0.15 per share compared to a loss of $0.03 per share in Q4 2023 [13] Business Line Data and Key Metrics Changes - Fleet Vehicles and Service segment sales were $110.7 million, down 7% from $119 million a year ago, with adjusted EBITDA improving to $12.1 million from a loss of $2.6 million [12][14] - Specialty Vehicles segment sales increased to $87.5 million, a 5% increase from $83.4 million in the prior year, with adjusted EBITDA at $16.6 million or 19% of sales [15] Market Data and Key Metrics Changes - Fleet Vehicles and Service backlog was $244.8 million at year-end, down 24.7% versus 2023, reflecting continued softness in the parcel market [14] - Specialty Vehicles backlog was $68.5 million at the end of the year, down 18.8% versus 2023, primarily due to a decrease in motorhome orders [15] Company Strategy and Development Direction - The proposed merger with Abby Schmidt aims to create a competitive leader in the specialty vehicles market, enhancing scale and capabilities [6][20] - The company is focused on operational improvements and increasing efficiencies, which resulted in adjusted EBITDA growth and margin improvements [7][10] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about near-term demand for parcel and motorhome vehicles, expecting softness to persist through midyear but anticipating a modest recovery in the second half of the year [17] - The company expects 2025 sales to range from $870 million to $970 million, including approximately $50 million related to BlueArc [18] Other Important Information - The company achieved a significant milestone by bringing BlueART to production, successfully shifting EV trucks to FedEx [9] - The balance sheet remains solid with net leverage less than two times, allowing flexibility for strategic investments [9] Q&A Session Summary Question: Update on BlueArc and delivery cadence - The company is in production phase for FedEx orders and has vehicles performing well in the field, but additional orders are needed to fulfill the $50 million sales target [28][30][33] Question: Outlook for parcel demand recovery - Management is closely monitoring key parcel customers and anticipates a replacement cycle for vehicles, expecting recovery in the second half of the year [39] Question: Specialty Vehicle order trends - Weakness in the motorhome market is driving order flow issues, but steady orders are expected in the work truck segment [41][42] Question: Infrastructure growth expectations - The merger with Abby Schmidt is expected to accelerate growth, particularly in infrastructure-focused segments [47] Question: Sustainability of Fleet Vehicles and Service margins - The company expects to maintain low double-digit margins in the Fleet Vehicles and Service segment due to operational efficiencies [48][49] Question: Impact of tariffs on pricing - The company is evaluating tariff impacts and has plans to mitigate risks through supply chain strategies and potential price increases [55]