Aebi Schmidt and Shyft Merge to Form Global Specialty Vehicle Leader.

• Aebi Schmidt and Shyft merger creates global specialty vehicle leader. • Combined company has two reporting segments: North America and Europe/Rest of World. • Dedicated "local for local" production strategy is resilient to trade tariffs. • Merger integration is progressing well, confirming synergies of $25-$30 million. • Strong order backlog of $1.1 billion secures expected ramp-up in H2. • North America customer quoting activity is solid with parcel and commercial truck fleet customers. • Europe and Rest of World sales momentum is strong with significant airport and municipal deal wins. • Targeting substantial deleveraging until year-end 2026 for opportunistic acquisitions. • Commitment to competitive quarterly dividend.

Aebi Schmidt Group (NASDAQ: AEBI) and The Shyft Group have completed a merger that has created a global specialty vehicle leader, as announced on July 1, 2025. The combined entity, now known as Aebi Schmidt Group, has a combined order backlog of $1.1 billion as of June 30, 2025, representing a 6.2% increase from the end of 2024 [1].

The merger has brought together two reporting segments, North America and Europe/Rest of World. Aebi Schmidt Group's "local for local" production strategy has proven resilient against trade tariffs, ensuring a stable supply chain [1]. The integration of the two companies is progressing well, with management confirming synergies of at least $25-30 million, with additional upside potential [1].

The strong order backlog of $1.1 billion is expected to secure a robust ramp-up in the second half of 2025. North America customer quoting activity remains solid, particularly among parcel and commercial truck fleet customers [2]. Meanwhile, Europe and Rest of World sales momentum is strong, with significant airport and municipal deal wins [2].

Aebi Schmidt Group is targeting substantial deleveraging until year-end 2026 to maintain flexibility for opportunistic tuck-in acquisitions. The company's net debt stands at $446 million, excluding $59 million in subordinated shareholder loans, against equity exceeding $700 million [1]. The company has initiated a quarterly dividend of $0.025 per share, signaling confidence in sustainable free cash flow generation [1].

The combined company's 2025 financial outlook projects sales of $1.85-2.0 billion and Adjusted EBITDA of $145-165 million. This guidance appears conservative given the strong backlog and expected second-half ramp-up, potentially setting the stage for upside surprises if integration proceeds smoothly and market conditions remain stable [1].

References:
[1] https://www.stocktitan.net/news/AEBI/aebi-schmidt-group-building-momentum-after-merging-with-the-shyft-nmvqb25ppatf.html
[2] https://www.prnewswire.com/news-releases/aebi-schmidt-group-building-momentum-after-merging-with-the-shyft-group-strong-order-backlog-additional-synergy-upside-and-commitment-to-delever-302529935.html