Stonegate Capital Partners has initiated coverage on Aebi Schmidt Holding AG (NASDAQ: AEBI), a company specializing in smart infrastructure solutions. The announcement, made on July 9, 2026, comes after Aebi Schmidt's first-quarter 2026 results showed muted sales but strong underlying demand. According to Stonegate's analysis, AEBI's reported sales of $456 million were roughly flat on a combined basis, but like-for-like sales increased 7% excluding the Blue Arc segment. This indicates that the revenue softness was due to timing rather than demand erosion.
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 and through the second half of 2026, particularly in North America walk-in vans. This conversion is critical as it directly impacts revenue recognition and cash flow generation.
Adjusted EBITDA increased 6% to $33.1 million, with margins expanding 40 basis points to 7.3%. This improvement was driven by Europe margin enhancement, while North America absorbed ramp costs ahead of expected conversion. The company's focus on converting backlog into EBITDA, along with working capital release and leverage reduction, supports management's year-end target of leverage below 2.0x.
North America remains the primary post-Shyft value driver, supported by walk-in van conversion, throughput gains, and aftermarket mix expansion. Stonegate's coverage underscores the importance of execution in the coming quarters, as the company aims to capitalize on its robust order book and improve profitability. For more details, the full announcement is available here. Key takeaways include the 7% comparable sales growth, 9% order intake increase, and a $1.26 billion backlog, all pointing to sustained demand and potential upside as backlog converts to revenue.
Stonegate Capital Partners, a leading capital markets advisory firm, provides investor relations, equity research, and institutional investor outreach services. Its affiliate, Stonegate Capital Markets, offers investment banking and capital raising for public and private companies. This initiation of coverage highlights the strategic importance of Aebi Schmidt's performance in the smart infrastructure sector and its potential for growth driven by North American operations.
