Stonegate Capital Partners has initiated coverage on Aebi Schmidt Holding AG (NASDAQ: AEBI), drawing attention to the company's first-quarter 2026 results that reveal underlying demand strength despite muted reported sales. According to the announcement, AEBI's 1Q26 sales were $456 million, roughly flat on a combined basis, but like-for-like sales increased 7% when excluding the Blue Arc segment. The quarter followed AEBI's normal seasonal cadence, with order intake rising 9% to $508 million and backlog reaching $1.26 billion, up 23% year-over-year. Management anticipates that backlog conversion will 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 margin expanding 40 basis points to 7.3%. This improvement was driven by margin gains in Europe, while North America absorbed ramp costs ahead of expected conversion. Stonegate's analysis underscores that the 1Q26 softness reflects revenue timing, not demand erosion, with comparable sales up 7% and orders up 9%. The backlog of $1.26 billion provides strong visibility into future revenue.
North America remains the primary post-Shyft value driver, supported by walk-in van conversion, throughput gains, and aftermarket mix expansion. Execution is centered on converting backlog into EBITDA, working capital release, and leverage reduction toward management's year-end target of ≤2.0x. The full announcement, including downloadable images and bios, is available 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 a full spectrum of investment banking, equity research, and capital raising for public and private companies. For more information, visit Stonegate Capital Partners.
