Aebi Schmidt (NASDAQ:AEBI) reported higher second-quarter sales, orders and profitability, citing stronger backlog conversion, operational efficiency gains and progress on integration synergies following its acquisition of The Shyft Group.
Group order intake increased 16% year over year to EUR 516 million, while order backlog rose nearly 20% to approximately EUR 1.3 billion. Net sales increased 9.4% organically to EUR 496 million. Adjusted EBITDA rose 22% to EUR 42 million, and the adjusted EBITDA margin expanded about 90 basis points to 8.5%.
North America posts stronger sales and backlog
North America delivered 11% sales growth during the quarter, with demand and backlog conversion in walk-in vans contributing to the increase, according to CEO of North America Steffen Schewerda. The segment’s backlog increased about 27% year over year, while adjusted EBITDA rose approximately 22%.
Schewerda said the business benefited from completed production ramp-ups, stronger airport operations, and a record quarter at Royal, where service-body production increased more than 20% above historical averages. The company also completed its Joliet production ramp-up, with customer deliveries proceeding as planned, and began commercial upfitting operations at its Iowa site. Municipal operations are expected to follow at that location.
During the quarter, Aebi Schmidt secured a seven-year, $96 million frame agreement with a strategic U.S. customer for walk-in vans and cargo vans. Schewerda said the agreement marked an expansion of the company’s offering with that customer, which has been a partner for more than two decades.
However, management said the agreement was not included in reported backlog because the company generally books frame contracts only after receiving purchase orders. The first revenue from the contract is expected in 2027.
Fruithof also addressed changes in the walk-in-van chassis market, saying the planned transition of Ford chassis production to Blue Bird was viewed positively because it could stabilize supply and reduce risks associated with emissions certification requirements. He said some customers have shifted toward FCCC chassis, while Aebi Schmidt continues to monitor the planned introduction of a new chassis in 2028.
Europe and Rest of World gains from airport, municipal demand
Europe and Rest of World reported approximately 20% growth in order intake, 7% sales growth and a 25% increase in adjusted EBITDA. CEO Henning Schröder said results reflected demand across Southern and Central Europe, contract wins, higher gross margins, aftermarket performance and disciplined spending.
The company said a major U.K. airport group selected Aebi Schmidt as its preferred supplier of winter-maintenance and airfield-sweeping equipment. It also cross-sold Ladog vehicles into the airport market. In municipal operations, the company secured an EUR 11 million German motorway contract.
Schröder said the launch of the new Aebi Terratrac agricultural vehicle generated strong customer interest, while demand continued to grow for electrified municipal vehicles.
Synergies, working capital and leverage
Management highlighted further progress in combining Aebi Schmidt and The Shyft Group. Fruithof said that, comparing the 12 months before and after the acquisition, order intake increased 26%, adjusted EBITDA grew 22%, and EBITDA margin improved by approximately 120 basis points.
The company increased its annual synergy target to more than $40 million on a run-rate basis. CFO Marco Portmann said Aebi Schmidt expects to realize EUR 37 million in synergies by the end of 2026, with roughly EUR 5 million more expected in 2027. He said remaining gains would include benefits from in-house production of the ServicePRO XP service body and cross-selling opportunities across the combined organization.
Net working capital was EUR 449 million at quarter-end, improving from a year earlier despite sales growth. Portmann said working capital as a percentage of net sales declined to 23% from 25% a year earlier, with a medium-term objective of about 20%.
Net debt stood at EUR 450 million, down EUR 5 million from the end of March, while leverage declined to 2.7 times. The company slightly revised its year-end leverage expectation to approximately 2 times or slightly above, from a previous target of 2 times or slightly below.
Portmann said temporary investments in safety stock and larger purchasing batches are expected to affect working capital through year-end and into the first quarter of 2027. The measures are intended to address supply-chain risks and material-cost inflation.
Guidance maintained amid cost pressures
Aebi Schmidt confirmed its full-year 2026 guidance for net sales and adjusted EBITDA, though management did not restate the numerical targets during the call.
The company said geopolitical uncertainty, tariff discussions, supply-chain disruptions and higher material costs have created temporary pressure on gross margins. Portmann said recent selling-price increases should support margins, though their effect will be delayed because of the company’s sizable backlog.
Fruithof said price increases are expected to have a greater effect by the end of 2026 and into early 2027. He added that the company’s local operating model limits direct tariff exposure, although it remains indirectly affected by cost pressures, including higher energy-related material costs.
Looking further ahead, Aebi Schmidt reiterated its ambition to exceed EUR 3 billion in annual revenue and achieve an adjusted EBITDA margin above 13% by 2030, supported by organic growth, market recovery, acquisitions, synergies, pricing, product mix and further operational improvements.
About Aebi Schmidt (NASDAQ:AEBI)
Aebi Schmidt is a Swiss-based company that designs, manufactures and services specialized equipment for municipal and commercial surface maintenance. The company’s offerings focus on machines and attachment systems used for snow-clearing, street sweeping, vegetation management, and related upkeep of roads, paths and public spaces. Aebi Schmidt supplies complete vehicle systems as well as modular implements that can be mounted on carriers for year‑round use.
Product lines typically include multi‑purpose maintenance vehicles, snowplows and salt spreaders, street sweepers, mowers and verge management tools, plus a range of hydraulic attachments and consumable parts.
