The Shyft (US:SHYF)2025-04-24 18:32Financial Data and Key Metrics Changes - The company reported Q1 2025 sales of $204.6 million, a 3% increase from $197.9 million in the prior year [22] - 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 [24] - 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 [23] 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, with adjusted EBITDA improving to $3.6 million or 3.8% of sales [25] - Specialty Vehicles segment reported sales of $82.2 million, a 9% decrease from $90.1 million in the prior year, with adjusted EBITDA at $14.3 million or 17.3% of sales [27] Market Data and Key Metrics Changes - The FVS backlog was $245.3 million at quarter end, down 31% year-over-year and flat compared to year-end 2024 [25] - Specialty Vehicles backlog was $90 million at quarter end, up 8% year-over-year and up 31% compared to year-end [28] Company Strategy and Development Direction - The company is focused on customer-centric innovation and expanding its product portfolio, particularly in electric vehicles [9][19] - The proposed merger with Aebi Schmidt is expected to create a leading global force in the specialty vehicles industry, enhancing growth in high-margin markets [32][33] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the timing of recovery in the parcel and motorhome markets, expecting approximately 70% of full-year adjusted EBITDA to be delivered in the second half of the year [30] - 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 [29] Other Important Information - The company maintains a solid balance sheet with a net leverage ratio of less than 2x, allowing flexibility for strategic investments [13] - The company has successfully syndicated a $600 million credit facility to support the merger with Aebi Schmidt [36] Q&A Session Summary Question: Update on Blue Arc vehicle orders and revenue - Management confirmed that the 150-unit order for FedEx will be completed in Q2, with additional orders in the pipeline [42][61] 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 [44][48] Question: Trends in Aebi Schmidt's business - Management refrained from commenting on Aebi Schmidt's performance as the S-4 filing is still under review by the SEC [50] Question: Customer order timing related to tariffs - Management indicated that there was no significant pull-forward of orders due to tariffs [53] 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 [56]