Stonegate Capital Partners has initiated coverage on Aebi Schmidt Holding AG (NASDAQ: AEBI), highlighting that the company's muted first-quarter sales were a result of revenue timing rather than a decline in demand. In the first quarter of 2026, Aebi Schmidt reported sales of $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 the year, particularly in North America walk-in vans. Adjusted EBITDA increased 6% to $33.1 million, with margins expanding 40 basis points to 7.3%, driven by improvements in Europe while North America absorbed ramp costs ahead of anticipated conversion.
North America remains the primary value driver following the Shyft acquisition, supported by walk-in van conversion, throughput gains, and aftermarket mix expansion. The company's execution is centered on converting its substantial backlog into EBITDA, releasing working capital, and reducing leverage toward management's target of 2.0x or less by year-end.
For more details, view the full announcement here.
