Aebi Schmidt 2025 Q3 Earnings Net Income Plummets 72.4% Despite Revenue Surge

Aebi Schmidt (AEBI) reported Q3 2025 earnings that missed revenue and EPS estimates but reaffirmed full-year guidance. The company’s revenue surged 79.6% year-over-year, yet net income and EPS declined sharply, reflecting integration costs and operational challenges. Management emphasized long-term growth through synergies and market expansion.

Revenue

Aebi Schmidt’s total revenue surged 79.6% to $471.32 million in Q3 2025, up from $262.45 million in 2024 Q3. The company’s product segments showed strong performance, with $227.06 million from point-in-time transfers and $244.27 million from over-time services. This growth was driven by the integration of Shyft Group and robust order intake.

Earnings/Net Income

The company’s EPS plummeted 81.8% to $0.02 in Q3 2025 from $0.11 in 2024 Q3, while net income fell 72.4% to $1.19 million. The decline was attributed to transaction costs from the Shyft merger and flat North American sales. The EPS drop highlights operational challenges despite revenue gains.

Price Action

Aebi Schmidt’s stock edged up 0.45% in the latest trading day and 1.73% for the week but fell 4.19% month-to-date. Post-earnings, the stock rose 3.91% pre-market to $11.15, reflecting investor optimism about future growth.

Post-Earnings Price Action Review

The strategy of buying Aebi Schmidt shares after revenue raises and holding for 30 days showed favorable returns over three years. A $10 investment grew to $12.46, driven by strong order intake (33.4% YoY), a 5.6% rise in backlog to $1.13 billion, and strategic moves like electrified sweepers and a Chicago supercenter. Holding shares post-earnings allowed investors to capitalize on market optimism about the company’s long-term potential.

CEO Commentary

CEO Barend Fruithof highlighted 33% YoY order growth, driven by Shyft Group’s sales excellence, and a 3% revenue rise led by Europe. Challenges in North America, including weak demand for walk-in vans, were offset by a new Chicago supercenter and $40 million in post-merger synergies. Leadership remains confident in achieving $3 billion in revenue and mid-teens EBITDA margins by 2026.

Guidance

Aebi Schmidt reaffirmed 2025 full-year sales guidance of $1.85–$2.0 billion and adjusted EBITDA of $145–$165 million. Management targets leverage below 2.0x by 2026 and $3 billion in revenue by 2026, supported by operational cost savings and market share expansion.

Additional News

1. M&A Activity: Aebi Schmidt completed its Shyft Group merger, accelerating $40 million in synergies ahead of schedule.

2. Strategic Investments: The company announced a new Chicago supercenter and expanded electrified sweeper production.

3. Dividend Initiation: Aebi Schmidt declared a $0.025 quarterly dividend, marking its first payout since the Nasdaq listing.