Stonegate Capital Partners Initiates Coverage on Aebi Schmidt Holding AG (AEBI)

Aebi Schmidt Holding AG (NASDAQ: AEBI): Stonegate Capital Partners Initiates Coverage on Aebi Schmidt Holding AG (NASDAQ: AEBI). AEBI's 1Q26 sales line was muted, but not because demand softened. Reported sales were $456M, roughly flat on the Company's combined basis, while like-for-like sales increased 7% excluding Blue Arc. The quarter followed AEBI's normal seasonal cadence, with order intake up 9% to $508M and backlog reaching $1.26B, up 23% y/y. Management expects backlog conversion to become more visible in 2Q26 and through the second half, especially in North America walk-in vans. Adjusted EBITDA increased 6% to $33.1M, with margin up 40 bps to 7.3%, driven by Europe margin improvement while North America absorbed ramp costs ahead of expected conversion.

1Q26 softness reflects revenue timing, not demand erosion, with comparable sales up 7%, orders up 9%, and backlog at $1.26B. 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 2.0x year-end target.