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FRAUENFELD, Switzerland - Specialty vehicle manufacturer Aebi Schmidt Group (NASDAQ:AEBI), currently valued at $946 million, reported Thursday that its merger with The Shyft Group, completed on July 1, has created a global specialty vehicle leader with a strong $1.1 billion order backlog as of June 30. According to InvestingPro data, the company maintains a "Fair" financial health score, with liquid assets exceeding short-term obligations by more than 2x.
The newly combined company confirmed it expects to deliver synergies of at least $25 to $30 million, with additional upside potential. Integration efforts are "progressing very well" according to company statements based on a press release.
The merger has organized the business into two reporting segments: North America and Europe/Rest of World. The company highlighted its "local for local" production strategy, which it says makes it resilient to trade tariffs.
For the second quarter of 2025, Aebi Schmidt as a standalone entity reported sales of $277.7 million, up 4.2% from the prior year, though it posted a net loss of $2.3 million compared to an $8.2 million profit in 2024. Shyft reported second quarter sales of $176.0 million, down 8.7% year-over-year, with a net loss of $5.6 million. Despite recent challenges, InvestingPro analysis shows the stock has gained over 17% in the past week, though it’s currently trading at elevated earnings multiples. Get access to 8 more exclusive InvestingPro Tips to better understand AEBI’s investment potential.
On a combined basis for the first half of 2025, the companies reported sales of $907.5 million, down slightly from $916.0 million in the same period last year. The combined entity posted a net loss of $7.3 million compared to net income of $14.4 million in the first half of 2024.
"Our combined first half results provide a strong foundation for future growth and improved profitability," said Marco Portmann, Aebi Schmidt Group Chief Financial Officer.
The company announced its first quarterly cash dividend of $0.025 per share, payable September 29 to shareholders of record as of August 29. Management also stated it is targeting substantial deleveraging until year-end 2026 while maintaining flexibility for opportunistic acquisitions.
For full-year 2025, Aebi Schmidt projects combined sales of $1.85 to $2.0 billion and adjusted EBITDA of $145 to $165 million. Analysts tracked by InvestingPro anticipate strong sales growth this year, with revenue expected to grow by 32%. The company’s current Fair Value assessment suggests the stock is fairly valued at current levels.
In other recent news, Aebi Schmidt has completed its merger with The Shyft Group, marking a significant development for the company. Following the merger, Aebi Schmidt began trading on the Nasdaq under the ticker symbol "AEBI" on July 2, 2025. This merger aims to establish Aebi Schmidt as a leader in the specialty vehicle market across North America and Europe. The combined entity’s portfolio now includes vehicles for snow removal, airports, street sweeping, agriculture, commercial trucks, and upfitting services.
BTIG has initiated coverage on Aebi Schmidt with a Neutral rating, reflecting a cautious outlook following the merger. The merger involved a share exchange ratio of approximately 1.04, with an implied share price for Aebi Schmidt of $12.06. The final trading day for The Shyft Group was June 30, with shares closing at $12.54. These developments are pivotal as Aebi Schmidt navigates its new position in the market post-merger.
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