Aebi Schmidt Group reported third‑quarter 2025 results that fell short of consensus expectations, with revenue of $471.3 million versus the $488.1 million consensus estimate and earnings per share of $0.02 against a $0.11 estimate. Net income declined to $1.2 million from $7.4 million in the same quarter a year earlier, largely due to transaction costs and restructuring charges associated with the July 1 acquisition of The Shyft Group.
Revenue missed expectations by roughly $16.8 million, a shortfall driven by softness in walk‑in vans and truck bodies in North America and a modest decline in demand for specialty vehicle platforms in Europe. The company’s core North American segment, which includes walk‑in vans, experienced a 3.2 % year‑over‑year increase, but this growth was offset by a 5 % decline in the European specialty vehicle segment, resulting in the overall revenue miss.
The earnings miss was largely attributable to one‑time transaction costs of $4.5 million and restructuring expenses of $1.8 million that were recorded in the quarter. These charges reduced net income and, in turn, EPS, even as operating cash flow remained strong. The company’s adjusted EBITDA, which excludes these non‑recurring items, rose 25 % year‑over‑year to $42.2 million, reflecting improved operating leverage and cost discipline.
Adjusted EBITDA margin expanded to 9.0 %, up 160 basis points from 7.8 % in the prior year. The margin gain was driven by higher pricing power in the specialty vehicle platform segment and by the integration of Shyft’s efficient manufacturing processes, which lowered unit costs. The company also achieved a 25 % increase in operating cash flow, supporting its target of a leverage ratio below 3.0× by year‑end 2025.
Management reaffirmed its full‑year 2025 guidance, maintaining sales guidance of $1.85 billion to $2.0 billion and adjusted EBITDA guidance of $145 million to $165 million. The company highlighted a 5.6 % year‑over‑year growth in its order backlog, now at $1.13 billion, and emphasized that the Shyft integration is accelerating synergies and expanding market share in North America. The strategic vision of $3 billion in revenue and mid‑teens adjusted EBITDA margin remains unchanged.
Barend Fruithof, Group CEO, said, “We are very happy to see a significant step‑up in profitability in the first quarter after closing the transaction. We also see the significant potential from our sales excellence methodology uplifting the Shyft business, with our governance and operating model fully implemented in the combined Group.” He added that the company will continue to execute the integration of the former Shyft Group, delivering synergies and growing market share.
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