Aebi Schmidt 2025 Q3 Earnings Misses Expectations, Net Income Drops 72.4%

Aebi Schmidt (AEBI) reported fiscal 2025 Q3 earnings on Nov 13, 2025, with revenue surging 79.6% year-over-year but EPS and net income declining sharply. The company reaffirmed full-year 2025 sales guidance at $1.85B–$2.0B and adjusted EBITDA guidance at the upper half of $145M–$165M, despite missing Q3 revenue estimates by $17.3M and EPS forecasts by $0.045.

Revenue

Aebi Schmidt’s total revenue rose to $471.32 million in 2025 Q3, up 79.6% from $262.45 million in 2024 Q3. This growth was driven by $227.06 million in revenue from products transferred at a point in time and $244.27 million from products and services transferred over time. The performance reflects strong demand across its diversified offerings.

Earnings/Net Income

The company’s earnings per share (EPS) plummeted 81.8% to $0.02 in 2025 Q3, down from $0.11 in 2024 Q3. Net income also declined to $1.19 million, a 72.4% drop from $4.32 million a year ago. These results underscore significant margin pressures and operational challenges.

Price Action

Aebi Schmidt’s stock edged up 0.45% during the latest trading day and 1.73% for the week, but fell 4.19% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Aebi Schmidt shares on the date of its revenue raise announcement and holding for 30 days showed favorable performance over the past three years, with a cumulative return of 24.8%—outperforming the 14.2% passive strategy. This positive reaction suggests market optimism around revenue growth, though short-term gains may not guarantee long-term sustainability.

CEO Commentary

Group CEO Barend Fruithof highlighted strong order momentum, with a 33% year-over-year intake, and emphasized integration progress post-Shyft Group merger. North America sales remained flat due to soft demand in walk-in vans and truck bodies, but adjusted EBITDA rose 25% to $42.2 million. Strategic priorities include launching a Chicago supercenter, accelerating $40M in synergies by mid-2027, and deleveraging to a net leverage ratio below 2.0 by 2026.

Guidance

Aebi Schmidt reaffirmed 2025 sales guidance at the midpoint of $1.85B–$2.0B and adjusted EBITDA at the upper half of $145M–$165M. The company projected “significant sales growth” in Q4, leveraging seasonal strength and a $1.13B backlog. Synergy targets were raised to $40M, with half expected by mid-2026.

Additional News

1. M&A Activity: The acquisition of Shyft Group in July 2025 has accelerated synergy realization, with $40M in expected savings by mid-2027.

2. Strategic Expansion: A new Chicago supercenter is set to launch, enhancing operational efficiency and customer reach.

3. Leadership Confidence: CEO Barend Fruithof emphasized a $1.13B backlog and a 10.2% adjusted EBITDA margin in North America, signaling confidence in 2026 growth amid regional recovery.