Stonegate Capital Partners has initiated coverage on Aebi Schmidt Holding AG (NASDAQ: AEBI), highlighting the company's resilient demand despite a seemingly muted first-quarter sales performance. For the first quarter of 2026, Aebi Schmidt reported sales of $456 million, roughly flat on a combined basis. However, when excluding the Blue Arc segment, like-for-like sales increased by 7%, indicating that underlying demand remains robust. The quarter followed Aebi Schmidt's normal seasonal cadence, 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 of 2026 and through the second half of the year, particularly in North America walk-in vans. This anticipated conversion is a key driver for the company's near-term growth. Adjusted EBITDA increased 6% to $33.1 million, with margins improving 40 basis points to 7.3%, driven by margin improvement in Europe. North America, meanwhile, absorbed ramp costs ahead of expected conversion, which should pay off as backlog materializes.
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 backlog into EBITDA, working capital release, and leverage reduction toward management's year-end target of ≤2.0x. These strategic priorities underscore Aebi Schmidt's focus on operational efficiency and financial health.
For more details, the full announcement including downloadable images and bios can be accessed here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers investment banking, equity research, and capital raising for public and private companies.
