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

Aebi Schmidt (AEBI) reported Q3 2025 earnings that missed market expectations, with revenue rising 79.6% to $471.32 million but EPS declining 81.8% to $0.02. The company reaffirmed full-year 2025 guidance, maintaining sales targets of $1.85–$2.0 billion and adjusted EBITDA of $145–$165 million. Despite soft demand in North America, strategic integration and backlog growth underpin a “very strong” fourth-quarter outlook.

Revenue

Revenue surged 79.6% year-over-year to $471.32 million in Q3 2025, driven by a 33% year-over-year order intake and the integration of the Shyft Group. North America sales remained flat at $336.0 million due to softness in walk-in vans and truck bodies, while Europe and the Rest of the World (RoW) saw a 14.6% increase to $135.4 million. The company’s order backlog grew 5.6% to $1.13 billion, reflecting robust demand and future revenue potential.

Earnings/Net Income

Aebi Schmidt’s EPS plummeted 81.8% to $0.02 in Q3 2025, down from $0.11 in Q3 2024, while net income fell 72.4% to $1.19 million. The decline was attributed to transaction and restructuring costs from the Shyft merger, offset by a 25.2% year-over-year rise in adjusted EBITDA to $42.2 million. The EPS and net income declines reflect integration costs and soft demand in key markets.

Post-Earnings Price Action Review

Despite missing earnings and revenue forecasts, Aebi Schmidt’s stock gained 3.91% in pre-market trading on Nov 13, 2025, reaching $11.15. The rally followed the company’s reaffirmation of full-year guidance and a $1.13 billion backlog, signaling long-term growth potential. Investors appeared to prioritize strategic initiatives, including electrified sweeper innovations and the Chicago supercenter, over short-term earnings misses. The stock’s 4.19% month-to-date decline highlighted near-term volatility, though its 52-week high of $33.00 suggested room for recovery if operational improvements materialize.

CEO Commentary

CEO Barend Fruithof emphasized strong order momentum and a $1.13 billion backlog, projecting a “very strong” fourth-quarter. Strategic priorities include $40 million in synergies by mid-2027, cost savings, and electrification investments. Fruithof expressed confidence in achieving mid-teens EBITDA margins by 2026, supported by deleveraging and working capital efficiency gains.

Guidance

Aebi Schmidt confirmed full-year 2025 sales guidance of $1.85–$2.0 billion and adjusted EBITDA of $145–$165 million, with Q3 results aligning with the midpoint of revenue and the upper half of EBITDA. The company aims for net leverage below 2.0 by year-end 2026, with half of $40 million in synergies realized by mid-2026.

Additional News

Aebi Schmidt announced a $0.025 quarterly dividend, marking its first payout post-Nasdaq listing. The company also completed its Shyft Group integration ahead of schedule, accelerating synergy realization to $40 million. Additionally, CEO Barend Fruithof highlighted a $1.13 billion backlog and “ambitious 2026 growth targets,” underscoring confidence in long-term profitability.