Skip to content
    AEBI
    Earnings call· Jun 2026(Q2 FY26)

    Aebi Schmidt Holding AG Q2 FY26 earnings call AEBI

    Aug 13, 2026 Source

    Executive summary

    Aebi Schmidt Q2 FY26 — Strong Profitability Improvement and Strategic Progress

    Aebi Schmidt delivered significantly improved profitability in Q2 FY26, driven by operational efficiencies and accelerated synergy realization from The Shyft Group acquisition. The company maintained strong order momentum and backlog growth, while strategically investing in supply chain resilience. Management remains confident in its long-term growth and margin expansion targets, despite near-term gross margin pressures and a slight adjustment to its leverage target.

    Highlights

    5

    • Order intake increased by 16% to $516 million and order backlog grew 20% to $1.3 billion year-over-year.

    • Adjusted EBITDA grew by 22% to $42 million, with margin expanding by 19 basis points to 8.5%.

    • Net income increased by $18 million year-over-year.

    • Successfully integrated The Shyft Group acquisition, increasing synergy target to over $40 million annual run rate.

    • North America sales grew 11% and Europe & Rest of World sales grew 7%, contributing to 9.4% organic growth.

    Concerns

    2

    • Updated full-year 2026 leverage target from "2x or slightly below" to "2x or slightly above" due to temporary investments in supply chain and material cost inflation.

    • Temporary pressure on gross margins due to unexpected supply chain challenges and material cost pressure.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Net Sales
    Confirmed
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    Confirmed
    high materiality
    High
    Leverage target
    2x or slightly above
    high materiality
    Medium
    Long-term revenue ambition
    Over $3 billion
    high materiality
    High
    Long-term Adjusted EBITDA margin ambition
    Above 13%
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    North America
    Strong quarter driven by top-line execution, backlog conversion, and overproportional profitability improvement. Robust order momentum in Airport and Chassis, supported by major project awards. Secured a 7-year $96 million frame contract with a strategic U.S. customer, including cargo vans. Joliet production ramp-up successfully completed.
    Order backlog: increased around 27% year-over-yearService body production (Royal): increased by more than 20% compared to historical averages
    		—11%—Adjusted EBITDA increased by approximately 22%
    Europe and Rest of World
    Strong quarter driven by exceptional order intake momentum and continued profitability improvement. Major U.K. airport group selected Aebi Schmidt as preferred supplier. Secured an $11 million German motorway contract. Benefiting from increasing demand for electrified municipal vehicles. Launch of new Aebi Terratrac generated strong customer interest.
    Order intake: increased approximately 20% compared with last year
    		—7%—Adjusted EBITDA increased by 25%

    Operational metrics

    14
    Adjusted EBITDA
    $42Mup 22% YoY
    Q2 FY26

    Reflecting production ramp-ups, operational efficiency, synergy realization, and strict cost control.

    Adjusted EBITDA margin
    8.5%up 19 bps YoY
    Q2 FY26

    Increased due to improved operating efficiency, completed ramp-ups, and strong contributions from Airport and Royal.

    Net income increase
    $18MYoY
    Q2 FY26

    Increased over proportionally compared to sales.

    Organic growth
    9.4%YoY
    Q2 FY26

    Mainly driven by North America (11% sales growth) and Europe & Rest of World (7% sales growth).

    Net working capital
    $449Mimproved YoY
    Q2 FY26

    Despite continued strong sales growth, reflecting ongoing efficiency improvements and disciplined working capital management.

    Net working capital to net sales ratio
    23.0%down 200 bps YoY
    Q2 FY26

    Midterm target is to reach 20% within 2-2.5 years.

    Net debt
    $450Mdown $5M from March
    Q2 FY26

    Relatively flat at quarter end.

    Leverage (Net Debt/Adjusted EBITDA)
    2.7xdown more than half a turn YoY
    Q2 FY26

    Well on track towards deleveraging target, despite temporary investments.

    Synergy target (annual run rate)
    more than $40Mincreased
    Annual

    Increased in connection with the Shyft acquisition anniversary.

    Synergies realized
    $37M
    by year-end 2026

    Accelerated realization, with remaining synergies from XP Service body PRO production and cross-selling.

    Order intake growth (post-acquisition)
    26%vs 12 months prior
    12 months after Shyft acquisition

    Comparing the 12 months before and after the acquisition of The Shyft Group.

    Adjusted EBITDA growth (post-acquisition)
    22%vs 12 months prior
    12 months after Shyft acquisition

    Comparing the 12 months before and after the acquisition of The Shyft Group.

    EBITDA margin improvement (post-acquisition)
    120 bpsYoY
    12 months after Shyft acquisition

    Comparing the 12 months before and after the acquisition of The Shyft Group.

    Deleveraging expectation
    at least another 0.5 turn improvement
    by end of 2026

    Expected based on profitability and working capital improvements.

    Industry KPIs

    5
    MetricValueDetails
    Capacity expansion—
    Tariff cost impact—
    Parts aftermarket business—
    Incremental margin operating leverage22%%
    Order backlog order intake by segment$516MUSD

    Orderbook & backlog

    2
    Total order intake$516MQ2 FY26

    increased 16% compared with Q2 2025

    Supported by growth in Airport and Chassis, municipal, and recovery of walk-in vans.

    Total order backlog$1.3BQ2 FY26

    increased nearly 20% year-over-year

    Provides good visibility for the remainder of 2026 and beyond.

    Product announcements

    5
    ProductTypeDetails
    Cleango 550 compact sweeperlaunch
    Aebi Terratraclaunch
    Expanded electric vehicle offeringsexpansion
    New airport equipment solutionslaunch
    Autonomous airport operation solutionsroadmap

    Deals & partnerships

    5
    Strategic U.S. customerWalk-in van frame contract$96M7-year

    Landmark contract for walk-in van frames, expanding to include cargo vans for the first time. Not booked into backlog until POs are received.

    Love's Travel StopsExpansion of AtlasCare service network

    Partnership to expand the AtlasCare service network in North America.

    Major U.K. airport groupPreferred supplier for winter maintenance and airfield sweeping equipment

    Selected Aebi Schmidt as preferred supplier.

    German motorwayMotorway maintenance contract$11M

    Strengthening position with one of Europe's key clients.

    Yeti MoveDevelopment of autonomous airport operation solutions

    Partnership to develop autonomous airport operation solutions for customers.

    Risks & headwinds

    4
    Geopolitical uncertaintiesFull-year 2026

    Assumed to continue to normalize in full-year 2026 guidance.

    Mitigation: Resilient business model, local-for-local operating model, strict cost management.

    Trade tariffs discussionsFull-year 2026

    Assumed to continue to normalize in full-year 2026 guidance.

    Mitigation: Resilient business model, local-for-local operating model, strict cost management.

    Supply chain disruptionsThrough year-end 2026 and into Q1 2027

    Triggering material cost inflation pressure; temporary pressure on gross margins.

    Mitigation: Strict cost management, strategic temporary investments in securing supply chain (increased safety stocks, bigger batch buying), recent sales price increases (to be realized late 2026/early 2027).

    Material cost inflationThrough year-end 2026 and into Q1 2027

    Triggered by supply chain disruptions and Iran war (energy prices); temporary pressure on gross margins.

    Mitigation: Strict cost management, strategic temporary investments in securing supply chain, recent sales price increases (to be realized late 2026/early 2027).

    What to watch in Q3 FY26

    5

    Leverage ratio

    Year-end 2026
    Current2.7x
    TargetCloser to 2x

    Why it matters

    Management updated its year-end leverage target due to temporary investments, and investors will watch for progress towards deleveraging.

    Accordingly, we are slightly updating our leverage target for year-end 2026 from previously 2x or slightly below to 2x or slightly above at year-end '26.

    Q&A highlights

    7

    Clarification on whether the $96M contract is in backlog, its shipment timing, and if such large orders are common.

    The $96 million, 7-year contract is not booked into backlog until purchase orders are received; first revenue realization is expected in 2027. It's unusual in that it broadens their customer portfolio beyond major parcel delivery companies and includes cargo vans in addition to walk-in vans.

    “So this is -- yes, this is a 7-year order, $96 million. We will see the first revenue realization in 2027, okay? ... Normally, we don't book any frame contracts in our backlog. We just book it once we have received the PO.”

    asked by Michael Shlisky · answered by Steffen Schewerda

    2 min read7 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Highlights

    Aebi Schmidt reported a strong second quarter with order intake up 16% and net sales increasing 9% organically to $496 million. Adjusted EBITDA grew 22% to $42 million, expanding the margin to 8.5%, reflecting overproportional profitability improvement driven by production ramp-ups, operational efficiency, and synergy realization.

    02

    Shyft Group Acquisition Anniversary & Strategy 2030

    One year post-acquisition, the company highlighted significant progress, including a 26% increase in order intake and 22% growth in adjusted EBITDA over the past 12 months compared to the prior period. The synergy target was raised to over $40 million annually, and the updated Group Strategy 2030 aims for over $3 billion in annual sales and an adjusted EBITDA margin above 13%.

    03

    North America Segment Strength

    The North American segment delivered robust performance with order backlog increasing 27% and sales up 11% year-over-year. Key wins included a 7-year, $96 million walk-in van frame contract and record performance at Royal service bodies, with production increasing over 20%. Adjusted EBITDA for the segment grew 22%, outperforming sales growth.

    04

    Europe & Rest of World Segment Momentum

    This segment also showed strong results, with order intake up 20% and net sales increasing 7%. Significant contract wins included a major U.K. airport group selection and an $11 million German motorway contract. Adjusted EBITDA for the segment increased 25%, driven by higher gross margins, strong aftermarket performance, and disciplined cost management.

    05

    Balance Sheet & Leverage Management

    Net working capital improved to $449 million, representing 23.0% of net sales, down from 25.0% a year ago, with a midterm target of 20%. Net debt remained relatively flat at $450 million, and leverage decreased to 2.7x from over 3.2x a year ago. The year-end 2026 leverage target was slightly adjusted to "2x or slightly above" due to temporary strategic investments in the supply chain.

    06

    Innovation and Product Development

    The company continues to invest in innovation, launching new products like the Cleango 550 compact sweeper and the next-generation Aebi Terratrac. Expanded electric vehicle offerings and autonomous airport operation solutions, in partnership with Yeti Move, were also highlighted as strengthening market leadership and supporting organic growth.

    07

    Gross Margin Headwinds and Mitigation

    Geopolitical uncertainties, tariff discussions, and material cost inflation are causing temporary pressure📎 on gross margins. Management is mitigating these impacts through strict cost control and strategic investments in the supply chain, expecting recent price increases to improve gross margins by year-end 2026 and early 2027.

    AI-generated summary of the company’s earnings call. Not investment advice.