- Successful completion of merger of Aebi Schmidt and Shyft on July 1, 2025 created global specialty vehicle leader with size and scale to drive significant growth opportunities; combined Company includes two reporting segments, North America and Europe / Rest of World. Resilient to trade tariffs with dedicated “local for local” production strategy
- Merger integration progressing very well, confirming delivery of synergies of at least $25 to $30 million, with additional significant upside identified
- Strong order backlog of $1.1 billion as of June 30, 2025, securing expected ramp-up in second half of year; solid North America customer quoting activity with parcel and commercial truck fleet customers; strong sales momentum in Europe and Rest of World with significant airport and municipal deal wins
- Targeting substantial deleveraging until year-end 2026, to maintain flexibility for opportunistic tuck-in acquisitions; commitment to competitive quarterly dividend
“The recent merger with The Shyft Group, which closed just 45 days ago, marks an exciting new chapter as we bring together the strengths of both legacy companies,” said Barend Fruithof, Aebi Schmidt Group Chief Executive Officer. “Our teams are intensely focused and hit the ground running post-close. We established a dedicated integration team and governance model to identify and execute opportunities, build an optimized structure, and unlock synergies throughout the combined business.”
M&A Transaction Update
- On July 1, 2025, the Company completed the merger with The Shyft Group (“Shyft”), which immediately bolstered Aebi Schmidt’s market leading businesses and world class operations
- Confirming delivery of at least $25 to $30 million of synergies; synergy upside includes additional cost savings and savings related to integration of Royal and Monroe service body production
- Successfully executed tuck-in acquisitions made by Aebi Schmidt in municipal, Ladog (November 2024), and by Shyft in police upfit, Lightning Wireless Solutions (June 2025); Ladog delivers strong first half 2025 growth, with 62% year-over-year order intake increase
Basis of Financial Results
- Second Quarter 2025 Financial Results for Aebi Schmidt and Shyft are presented on a standalone basis and reflect results prior to the merger closed on July 1, 2025
- Combined First Half 2025 Financial Results include results for Aebi Schmidt and Shyft on a combined basis inclusive of the periods prior to the merger on July 1, 2025; historical information presented on a combined basis does not reflect pro- forma adjustments or adjustments for cost related to integration activities, cost savings or synergies that have or may be achieved if the merger closed on January 1, 2025
- The Combined 2025 Financial Outlook is presented on a pro-forma basis as if the merger closed on January 1, 2025
Aebi Schmidt Second Quarter 2025 Financial Results
For the second quarter of 2025 compared to the second quarter of 2024:
- Sales of $277.7 million, an increase of $11.2 million, or 4.2%, from $266.5 million
- Net loss of $2.3 million, a decrease of $10.5 million from net income of $8.2 million
- Adjusted EBITDA1 of $21.3 million, or a 7.7% margin, a decrease of $4.6 million, from $25.9 million, or a 9.7% margin
- Order Backlog of $745.4 million as of June 30, 2025, up $53.2 million, or 7.7%, compared to $692.2 million as of December 31, 2024
- Profitability in second quarter of 2025 was impacted by one-time warranty and R&D expenses; exceptionally strong prior year quarter was supported by high-margin sales of pre-produced machines
Shyft Second Quarter 2025 Financial Results
For the second quarter of 2025 compared to the second quarter of 2024:
- Sales of $176.0 million, a decrease of $16.8 million, or 8.7%, from $192.8 million
- Net loss of $5.6 million, a decrease of $7.8 million from a net income of $2.2 million
- Adjusted EBITDA1 of $13.2 million, or a 7.5% margin, an increase of $2.7 million, from $10.5 million, or a 5.4% margin
- Order Backlog of $322.5 million as of June 30, 2025, up $9.3 million, or 3.0%, compared to $313.2 million as of December 31, 2024
- Sales at lower end of expectations, primarily due to weakness in walk-in-vans; profitability improvement driven by strong cost containment prior to merger
Combined First Half 2025 Financial Results
For the first half of 2025 compared to the first half of 2024:
- Sales of $907.5 million, a decrease of $8.5 million, or 0.9%, from $916.0 million
- Europe and Rest of World up 2.5% with continued strong momentum with airport customers, while agriculture business is lagging
- North America down 2.0%, reflecting weakness in walk-in-vans in second quarter
- Net loss of $7.3 million, a decrease of $21.7 million from net income of $14.4 million
- Adjusted EBITDA[1] of $65.7 million, or a 7.2% margin, a decrease of $1.4 million, from $67.1 million, or a 7.3% margin
- Slightly below prior year, due to slightly lower sales and one-time impacts
- Adjusted EBITDA contribution of $42.5 million from legacy Aebi Schmidt and $23.2 million from legacy Shyft Group, or $58.2 million from North America and $7.5 million from Europe and Rest of World
- Order Backlog of $1.1 billion as of June 30, 2025, up $62.5 million, or 6.2%, compared to $1.0 billion as of December 31, 2024
- Europe and Rest of World backlog up 32.4% with landmark deals in the Netherlands for municipal products and in China for airport products
- North America backlog up 0.6% with significant deals for Minneapolis airport and the Kansas City Department of Transportation
Marco Portmann, Aebi Schmidt Group Chief Financial Officer, commented, “Our combined first half results provide a strong foundation for future growth and improved profitability. We are encouraged by the continued engagement and positive sentiment from our customers. Our order backlog of $1.1 billion supports our expected ramp-up in the second half of 2025.”
Capital Allocation Strategy and Quarterly Dividend Announcement
The combined Company's net debt as of June 30, 2025 was $446 million (excluding $59 million of long-term, subordinated shareholder loans at favorable fixed interest rates) and the combined Company’s balance sheet equity was well over $700 million, representing an equity ratio of approximately 40%.
Aebi Schmidt’s Board of Directors has declared the Company’s first quarterly cash dividend of $0.025 per share of common stock, which is tax free for Swiss shareholders. The quarterly dividend will be payable on September 29, 2025, to shareholders of record as of the close of business on August 29, 2025.
“By the end of the year, we expect to significantly reduce net working capital, drive free cash flow generation, and improve cash conversion ratio. We are targeting to substantially delever over the medium term with a leverage ratio less than 2.0x, while maintaining flexibility for tuck-in acquisitions,” said Portmann. “We are also committed to a competitive quarterly dividend and to return capital to our shareholders over the long-term.”
Combined 2025 Financial Outlook
- Combined Company guidance assumes merger closed on January 1, 2025
- Annual Report on Form 10-K filing for Aebi Schmidt is expected to be released in the first quarter of 2026; Form 10-K will include legacy Aebi Schmidt results for the first half of 2025 and combined Aebi Schmidt and Shyft results for the second half of 2025
Portmann commented, “Despite a dynamic environment, we see good order momentum in Europe and Rest of World, including improving margins. In North America, we expect increased demand for walk-in-vans and further opportunities to secure significant customer awards. Our strong order backlog of $1.1 billion provides good revenue visibility for the second half of the year.”
The Company is introducing its full-year 2025 outlook, which includes combined pro-forma results of Aebi Schmidt and Shyft. Notwithstanding further changes in the operating environment, our outlook is as follows:
- Sales of $1.85 to $2.0 billion; reflects a dynamic operating environment for our customers
- Adjusted EBITDA of $145 to $165 million; does not include non-cash executive compensation adjustment
Fruithof concluded, “We are extremely excited about the potential of the combined Company to drive significant sales and EBITDA growth. 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.”
Conference Call and Webcast Information
The Company will host its second quarter 2025 earnings conference call on Thursday, August 14, 2025, at 8:30 A.M. Eastern Time. Barend Fruithof, Group Chief Executive Officer, and Marco Portmann, Group Chief Financial Officer, will lead the call. Links to access the conference call webcast or to dial into the conference call telephonically as well as conference call materials to accompany the webcast and conference call can be accessed at the following link: https://www.aebi-schmidt.com/investors
[1] See Non-GAAP Measures for additional information regarding non-GAAP financial metric