Aebi Schmidt Powers Ahead: Record-Breaking Quarter Sets Stage for 2026 Growth
Aebi Schmidt Group, a leading provider of specialized vehicle solutions, has capped off an impressive year with a record-breaking fourth quarter in 2025. The company's Investor Relations Director, Simone Grancini, welcomed participants to the Q4 earnings call, where key highlights and growth prospects for 2026 were discussed.
Group CEO Barend Fruithof proudly declared that 2025 was a historic year for Aebi Schmidt, marked by the acquisition of Shyft Group and the company's listing on Nasdaq. He highlighted the impressive performance of the fourth quarter, with order intake increasing 46% compared to 2024 and achieving a record-high quarterly backlog.
The Adjusted EBITDA also saw significant growth, rising 31% year-over-year in the fourth quarter, accompanied by an Adjusted EBITDA margin of 9.1%, a notable improvement from 7.4% in the prior year. Furthermore, the company's strong cash flow enabled it to reduce its leverage to 2.8x, fortifying its balance sheet as it enters 2026.
The exceptional order momentum was driven by strong orders in airport and municipal segments, with walk-in van orders recovering significantly from previous years. This recovery is seen as a structural change in demand patterns, providing optimism for the future. However, commercial markets are expected to remain soft, with only a slow recovery anticipated in 2026.
Net sales grew by 6% in the fourth quarter compared to prior-year levels, largely due to substantial organic growth in Europe and the rest of the world, despite a 5% decline in legacy Shyft business. The company accelerated cost synergies from the acquisition of Shyft, with additional procurement and revenue synergies expected to materialize in the second half of 2026.
Aebi Schmidt is well-positioned for growth in 2026, thanks to several key foundations built during this period. The company's M&A strategy continues to deliver returns beyond the Shyft acquisition, with smaller bolt-on acquisitions like LWS and Lotek providing significant growth opportunities. Additionally, new product launches such as service bodies jointly developed by Monroe and Royal, compact airport products, and cost-competitive offerings will support revenue and profitability in 2026.
Steffen Schewerda, CEO of North America, elaborated on the company's performance in this segment, highlighting strong order entry in airport business and a recovery in walk-in van markets. First deliveries have been made to customers for new products, which are gaining traction in the market.
Aebi Schmidt is also simplifying its brand architecture, sharpening its market presence, and sending a clear signal that it is one powerful group. This move aims to make it easier for customers to navigate the company's broad range of solutions, simplify customer engagement, and allow for more effective communication. As the company enters 2026, it appears well-equipped to build on this momentum and drive growth forward.
