Aebi Schmidt Group Sees Strong Order Backlog, Upside Synergies After Merger.

• Aebi Schmidt merges with The Shyft Group on July 1, 2025. • Creates global specialty vehicle leader with two reporting segments: North America and Europe/Rest of World. • Resilient to trade tariffs with "local for local" production strategy. • Merger integration progresses well, confirming synergies of $25-$30 million and additional upside. • Strong order backlog of $1.1 billion as of June 30, 2025. • Secures expected ramp-up in second half of the year. • North America customer quoting activity strong with parcel and commercial truck fleet customers. • Solid sales momentum.

On July 1, 2025, Aebi Schmidt Group (NASDAQ: AEBI) successfully merged with The Shyft Group, creating a global specialty vehicle leader with a strong market position. The merger, which closed just 45 days prior, has bolstered Aebi Schmidt's market-leading businesses and world-class operations, setting the stage for significant growth opportunities [1].

The newly formed company, Aebi Schmidt Group, comprises two reporting segments: North America and Europe/Rest of World. The merger integration is progressing well, with the delivery of synergies of at least $25 to $30 million confirmed, along with additional significant upside identified [1]. The combined company's order backlog as of June 30, 2025, stood at $1.1 billion, securing an expected ramp-up in the second half of the year [1].

Strong customer quoting activity in North America, particularly with parcel and commercial truck fleet customers, has been a notable highlight. Sales momentum in Europe and the Rest of the World is also solid, with significant airport and municipal deal wins contributing to this growth [1]. The company's "local for local" production strategy has proven resilient to trade tariffs, ensuring a stable supply chain [1].

Barend Fruithof, Aebi Schmidt Group Chief Executive Officer, expressed optimism about the potential of the combined company, stating, "Our merger integration activities are already yielding immediate results, positioning us well to meet our customers' evolving needs. With a resilient business model and a high-performing, aligned organization, we are confident in our ability to create long-term value for shareholders" [1].

Marco Portmann, Aebi Schmidt Group Chief Financial Officer, commented on the company's financial outlook, noting that the combined order backlog provides good revenue visibility for the second half of 2025. The company is targeting substantial deleveraging until year-end 2026 to maintain flexibility for opportunistic tuck-in acquisitions and is committed to a competitive quarterly dividend [1].

The combined company's net debt as of June 30, 2025, was $446 million, with a balance sheet equity well over $700 million, representing an equity ratio of approximately 40%. The company's first quarterly cash dividend of $0.025 per share of common stock was declared on August 14, 2025, and will be payable on September 29, 2025, to shareholders of record as of August 29, 2025 [1].

The company expects sales of $1.85 to $2.0 billion and adjusted EBITDA of $145 to $165 million for the full year 2025, reflecting a dynamic operating environment for their customers. Despite a dynamic environment, the company sees good order momentum in Europe and the Rest of World, including improving margins. In North America, increased demand for walk-in-vans and further opportunities to secure significant customer awards are expected [1].

The Aebi Schmidt Group will host its second quarter 2025 earnings conference call on Thursday, August 14, 2025, at 8:30 A.M. Eastern Time. Participants can access the conference call webcast at the following link: [https://edge.media-server.com/mmc/p/otytpqv2](https://edge.media-server.com/mmc/p/otytpqv2) [1].

References:
[1] https://www.prnewswire.com/news-releases/aebi-schmidt-group-building-momentum-after-merging-with-the-shyft-group-strong-order-backlog-additional-synergy-upside-and-commitment-to-delever-302529935.html