Shyft and Isuzu strengthen North American operations

NOVI, Mich. - The Shyft Group, Inc. (NASDAQ: SHYF), a leader in North American specialty vehicle manufacturing with a market capitalization of $368 million and annual revenue of $786 million, announced today its expanded collaboration with Isuzu North America Corporation. According to InvestingPro analysis, while the company has faced recent challenges with its stock down about 25% over the past six months, analysts expect net income growth this year. This move is set to bolster Shyft’s growth and establish new operations in proximity to Isuzu’s upcoming production facility in Greenville County, South Carolina.

The partnership, which began in 2011, is expected to generate new revenue opportunities for Shyft, including a dedicated upfit and modification center and a new body program designed for the North American market. This expansion comes at a crucial time, as InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.63, while analysts project 13% revenue growth for the upcoming fiscal year. For deeper insights into Shyft Group’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Jacob Farmer, President of Fleet Vehicles & Services and Specialty Vehicles at The Shyft Group, emphasized the importance of this collaboration in expanding the company’s capabilities and delivering increased value to both Isuzu and Shyft’s customers.

Shyft will maintain the assembly of key Isuzu vehicle lines, such as the N-Series Gas, N-Series EV, and F-Series trucks, at its Charlotte, Michigan campus during the multi-year production ramp-up in Greenville. The company’s expertise will also aid in planning and launching the new South Carolina facility, ensuring a seamless transition and continuous production.

Further plans include establishing Shyft as a long-term provider of upfit and vehicle solutions for Isuzu’s North American operations, with a dedicated upfit and modification center near the Greenville plant. This center will support Port-Installed Options (PIO), final vehicle modifications, and other upfit services for vehicles produced at the new location.

Noboru Murakami, President of Isuzu North America Corporation, expressed that Shyft’s assembly and upfit expertise will be vital as they scale the new production facility and continue delivering commercial vehicles to the North American market.

Isuzu’s Greenville facility, a 1,000,000-square-foot plant, will consolidate production, vehicle preparation, and logistics to enhance efficiency and support growth plans. Initial production is slated to begin in 2027, with further expansion in 2028. The plant is expected to produce up to 50,000 vehicles annually and create over 700 jobs. The transition will be gradual to minimize disruptions and ensure a steady supply of vehicles.

This announcement is based on a press release statement from The Shyft Group, which reported sales of $786 million in 2024 and employs approximately 2,900 people across various locations. The company is known for its quality, durability, and innovative specialty vehicle offerings in the commercial, retail, and service markets. Notable for investors, the company has maintained dividend payments for 38 consecutive years, currently yielding 1.89%. InvestingPro analysis indicates the stock is currently undervalued based on their proprietary Fair Value model, with 12 additional ProTips available to subscribers regarding the company’s financial outlook and market position.

In other recent news, The Shyft Group reported its fourth-quarter 2024 earnings, which presented a mixed picture for investors. The company’s earnings per share (EPS) met expectations at $0.15, but revenue fell short, coming in at $201.4 million against an anticipated $213.24 million. Despite the revenue miss, adjusted EBITDA showed significant improvement, rising to $15.9 million from $2.3 million in the previous year, indicating operational efficiencies and a focus on cost management. The Shyft Group also announced its strategic move to merge with Aebi Schmidt, a development that is expected to enhance their market position and create synergies in the specialty vehicles sector.

DA Davidson reaffirmed a Buy rating on The Shyft Group, maintaining a $15 price target, citing anticipated EBITDA growth of 37% and potential benefits from the Aebi Schmidt merger. The firm expressed optimism about the company’s growth prospects, despite the guidance for 2025 slightly trailing expectations. The Shyft Group has also been making strides in its electric vehicle segment, with BlueARC EV truck production and deliveries to FedEx (NYSE:FDX) underway, highlighting its commitment to expanding its EV offerings. Looking ahead, the company projects sales between $870 million and $970 million for 2025, with adjusted EBITDA expected to range from $62 million to $72 million.

These developments reflect The Shyft Group’s strategic initiatives and operational improvements, as it navigates market challenges and positions itself for future growth.

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