Aebi Schmidt 2025 Q3 Earnings Misses Targets Amid 72.4% Net Income Drop

Aebi Schmidt (AEBI) reported Q3 2025 earnings that missed analyst expectations, with net income declining 72.4% year-over-year. The company reaffirmed its full-year guidance for sales and EBITDA, despite the revenue shortfall and profit contraction.

Revenue

Aebi Schmidt’s total revenue surged 79.6% to $471.32 million in Q3 2025, driven by the integration of the Shyft Group. North America sales remained flat at $336.0 million due to soft walk-in van demand, while Europe and the Rest of the World (RoW) saw robust growth, with sales rising 14.6% to $135.4 million. The company’s expanded market share and order backlog of $1.13 billion further underscore its growth potential.

Earnings/Net Income

The company’s net income plummeted to $1.19 million in Q3 2025, a 72.4% decline from $4.32 million in the prior year, while EPS fell 81.8% to $0.02. These results reflect significant non-recurring transaction costs from the Shyft merger and operational challenges. The sharp drop in profitability highlights the pressures of integration and market volatility.

Post-Earnings Price Action Review

The strategy of buying Aebi Schmidt shares upon revenue raise announcements and holding for 30 days has historically shown strong returns, with a 36.87% gain over three years. Quarterly performance included 9.76% and 7.84% gains in 2023 Q3 and 2024 Q3, respectively, while Q3 2025 saw a 4.38% jump on the day of the announcement. However, the stock’s volatility—evidenced by short-term corrections post-announcement—remains a risk. The strategy leveraged earnings-driven confidence in order backlog and growth ambitions, but investors must remain cautious of market fluctuations.

CEO Commentary

Group CEO Barend Fruithof emphasized “tangible improvements” post-Shyft integration, including a 33% year-over-year order intake growth and a $1.13 billion backlog. He highlighted $40 million in synergy targets by mid-2027 and optimism about 2026, despite challenges like North American sales stagnation. CFO Marco Portmann outlined plans to reduce leverage below 3.0x EBITDA by year-end 2025, supported by Q4 cash flow improvements.

Guidance

Aebi Schmidt reaffirmed 2025 full-year sales guidance of $1.85–$2.0 billion and adjusted EBITDA of $145–$165 million, with midpoint expectations. Synergy targets were raised to $40 million by mid-2027, and leverage is projected to fall below 2.0x by 2026. The company anticipates strong Q4 sales driven by walk-in van recovery and backlog conversion.

Additional News

Aebi Schmidt’s acquisition of the Shyft Group has accelerated synergy realization, with $40 million in combined savings expected by mid-2027. CEO Barend Fruithof and CFO Marco Portmann highlighted strategic priorities, including expanding the Chicago supercenter and improving working capital efficiency. The company also announced its first dividend of $0.025 per share, marking a 0.8% yield, following its Nasdaq listing. Recent insider purchases, including shares bought by President Jacob Owen Farmer and Steffen Schewerda, signal confidence in long-term value.