Stonegate Capital Partners has initiated coverage on Aebi Schmidt Holding AG (NASDAQ: AEBI), highlighting that the company's first-quarter sales weakness was due to timing rather than a drop in demand. In a research note published Thursday, the firm reported that AEBI's Q1 2026 sales came in at $456 million, roughly flat on a combined basis, but like-for-like sales increased 7% when excluding the Blue Arc segment.
The quarter followed the company's normal seasonal pattern, with order intake rising 9% to $508 million and backlog reaching $1.26 billion, up 23% year-over-year. Management expects backlog conversion to become more visible in the second quarter and through the second half of 2026, particularly in North America walk-in vans. Adjusted EBITDA grew 6% to $33.1 million, with margin expanding 40 basis points to 7.3%, driven by improvements in Europe while North America absorbed ramp costs ahead of expected conversion.
Key takeaways from the initiation include that the Q1 softness reflects revenue timing, not demand erosion, with comparable sales up 7%, orders up 9%, and backlog at $1.26 billion. North America remains the primary post-Shyft value driver, supported by walk-in van conversion, throughput gains, and aftermarket mix expansion. The company's execution is centered on converting backlog into EBITDA, working capital release, and leverage reduction toward management's year-end target of ≤2.0x.
For more details, see the full announcement at Stonegate Capital Partners.
