Key Highlights

  • Net sales grew 4.6% to USD 493 million in the third quarter, led by almost 8% organic growth in North America, while Europe and Rest of World was slightly weaker.
  • Adjusted EBITDA rose 4.9% to USD 44.2 million at an unchanged 9.0% margin, although gross Margin was 19.2%, 80 basis points below the prior year, on material cost inflation.
  • Order intake rose 2% to USD 528 million, and the order Backlog reached USD 1.3 billion, 16% higher than a year earlier, driven by North American Walk-In Van demand.
  • Management now expects 2026 net sales of USD 1.95 billion to USD 2.0 billion and adjusted EBITDA of USD 170 million to USD 180 million, with Leverage below 2.5 times.

Sales Growth Meets Supply Chain Disruption

Aebi Schmidt (NASDAQ:AEBI) held its third quarter 2026 Earnings Call on November 11, 2026. Net sales of USD 493 million were up 4.6%, and the company said organic growth was almost 5%. The group makes municipal, airport and commercial truck equipment, and it expanded through its July 2025 Acquisition of Shyft Group, so prior-period figures are shown on a combined basis. Management said supplier insolvencies in Europe, shortages of chassis and engines from vehicle makers in the United States and temporary production disruptions held back volumes. Management said Net Income increased by USD 10 million from a year earlier, though the extract did not give the absolute figure.

Gross Margin Squeeze Offset Below the Line

Gross margin of 19.2% was about 130 basis points below the company's own target for the quarter, which the group blamed on geopolitical uncertainty, weak macro conditions and pronounced material cost inflation. Management said price increases have been executed but take time to flow through a long backlog. The year-on-year gap narrowed from 100 basis points in the second quarter to 80 in the third. Cost actions lifted adjusted EBITDA 4.9% to USD 44.2 million, a non-GAAP measure, and kept the margin at 9.0%. Net Working Capital was USD 465 million, and net Debt fell to USD 446 million, cutting leverage to 2.66 times.

Guidance Update, Deleveraging and O.J. Watson Deal

On the call, management described the 2026 outlook as a slight update, with net sales of USD 1.95 billion to USD 2.0 billion. An analyst on the call characterized it as a cut of about USD 75 million to sales and USD 10 million to adjusted EBITDA at the midpoints, and management said most of the Revenue change came from third-quarter supply disruptions. It expects strong fourth-quarter Operating Cash Flow and leverage below 2.5 times by year-end, and reaffirmed a 2030 target of adjusted EBITDA of at least 13%. It also announced a planned acquisition of O.J. Watson, a municipal and commercial upfitter with about USD 28 million of annual net sales, expected to close before year-end and add to Earnings Per Share in the first year.

Where Things Stand

Demand is strong, but execution is the limit. Aebi Schmidt (NASDAQ:AEBI) trimmed its 2026 outlook because supply disruptions in the third quarter cut into sales, even with a record USD 1.3 billion backlog and orders up 2%. Adjusted EBITDA still rose 4.9% as cost actions offset a thinner gross margin. Next markers are the fourth-quarter cash flow that management expects to bring leverage below 2.5 times, the closing of the O.J. Watson purchase, realization of price increases and the recovery of gross margin.