Aebi Schmidt stock falls after merger with Shyft Group leads to Q2 loss

Published 14/08/2025, 14:18
© Reuters.

Investing.com -- Aebi Schmidt Holding AG (NASDAQ:AEBI) stock tumbles 15.4% after the specialty vehicle manufacturer reported a net loss for the second quarter following its recent merger with The Shyft Group.

The company, which completed the merger on July 1, posted second-quarter sales of $277.7 million, up 4.2% from $266.5 million in the same period last year. However, Aebi Schmidt recorded a net loss of $2.3 million for the quarter, compared to net income of $8.2 million a year earlier.

Meanwhile, The Shyft Group reported second-quarter sales of $176.0 million, down 8.7% YoY from $192.8 million, with a net loss of $5.6 million versus net income of $2.2 million in 2024.

For the first half of 2025, the combined company’s sales reached $907.5 million, representing a slight decline of 0.9% from $916.0 million in the prior year period. The company reported a net loss of $7.3 million for the six-month period, compared to net income of $14.4 million in the first half of 2024.

Despite the losses, Aebi Schmidt confirmed that the merger is expected to deliver synergies of $25 million to $30 million, with additional cost savings identified. The company also declared its first quarterly dividend of $0.025 per share, payable September 29 to shareholders of record as of August 29.

The newly combined entity reported a $1.1 billion order backlog as of June 30, with combined net debt of $446 million, excluding $59 million in subordinated shareholder loans. Management aims to substantially reduce leverage through year-end 2026 to maintain flexibility for future acquisitions.

For 2025, Aebi Schmidt projects combined sales of $1.85 billion to $2.0 billion and adjusted EBITDA of $145 million to $165 million on a pro-forma basis.

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