Aebi Schmidt 2025 Q3 Earnings Revenue Surges 79.6% Despite 72.4% Net Income Drop

Aebi Schmidt (AEBI) reported mixed Q3 2025 results, with revenue rising sharply but net income declining significantly. The company missed EPS and revenue forecasts, yet reaffirmed full-year guidance.

Revenue

Aebi Schmidt’s total revenue surged 79.6% year-over-year to $471.32 million in Q3 2025, driven by the acquisition of Shyft Group and strong organic growth in Europe. North American sales remained flat at $336.0 million, while Europe and Rest of World (RoW) sales climbed 14.6% to $135.4 million. The integration of Shyft contributed to a 33.4% year-over-year increase in order intake and a $1.13 billion backlog.

Earnings/Net Income

The company’s net income plummeted 72.4% to $1.19 million in Q3 2025, down from $4.32 million in Q3 2024, while EPS fell 81.8% to $0.02. The decline was attributed to acquisition-related costs and restructuring expenses. This represents a significant earnings underperformance compared to prior periods.

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 yielded a 24.8% cumulative return over three years, outperforming the 14.2% return of a passive buy-and-hold approach. This outperformance suggests that the market reacted positively to the revenue growth signal, which signaled a potential turnaround in the company’s financial trajectory. The 30-day holding period captured investor optimism about future performance, as the revenue increase aligned with strategic initiatives like the Shyft integration and expanded market share.

CEO Commentary

Group CEO Barend Fruithof highlighted a 33% year-over-year order intake and $471 million in sales, driven by organic growth in Europe and North America’s walk-in van segment. He emphasized the successful integration of Shyft Group, which delivered $42.2 million in adjusted EBITDA (up 25% YoY), and confirmed the $40 million synergy target would be met ahead of schedule. Strategic priorities include leveraging the Chicago supercenter for enhanced service, accelerating cost synergies, and expanding market share through sales excellence initiatives.

Guidance

Aebi Schmidt reaffirmed full-year 2025 sales guidance of $1.85 billion–$2.0 billion and adjusted EBITDA of $145 million–$165 million. The company projects leverage below 2.0x by year-end 2026 and aims to achieve $3 billion in revenue with mid-teens EBITDA margins.

Additional News

1. M&A Activity: The integration of Shyft Group accelerated synergies, with $42.2 million in adjusted EBITDA (up 25% YoY) and a $40 million synergy target met ahead of schedule.

2. Strategic Expansion: A new Chicago supercenter was established to enhance service efficiency, and the company announced investments in electrified sweepers to align with market trends.

3. Dividend Announcement: Aebi Schmidt declared a quarterly dividend of $0.025 per share, marking its first dividend since the Nasdaq listing.