The Shyft Group (SHYF) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales increased 3.4% year-over-year to $204.6 million, with adjusted EBITDA doubling to $12.3 million (6% margin) and net loss narrowing to $1.4 million.

• Blue Arc EV business contributed $26.3 million in sales and advanced production, while specialty vehicles and service truck businesses maintained high margins and robust order intake.

• Consolidated backlog was $335.3 million, down 23.7% year-over-year but up 7% from year-end, with SV backlog rising 8% year-over-year.

• Merger integration with Aebi Schmidt is progressing, with closure expected by mid-2025 and a $600 million credit facility syndicated.

• Celebrated 50th anniversary with new product launches and record customer engagement at NTEA Work Truck Show.

Financial highlights

• Q1 2025 sales were $204.6 million, up 3% year-over-year; gross margin improved to 19.7% from 17.2%.

• Adjusted EBITDA doubled to $12.3 million (6% of sales) from $6.1 million (3.1% of sales) year-over-year.

• Adjusted net income was $2.4 million, or $0.07 per share, versus a loss of $0.04 per share last year.

• Net loss improved to $1.4 million (negative $0.04/share) from $4.7 million (negative $0.14/share) year-over-year.

• Free cash flow for Q1 2025 was ($9.5) million, similar to ($9.6) million last year.

Outlook and guidance

• Affirmed 2025 outlook: sales of $870–$970 million, adjusted EBITDA of $62–$72 million, and adjusted EPS of $0.69–$0.92.

• Free cash flow guidance maintained at $25–$30 million for the year.

• Expect about 70% of full-year adjusted EBITDA in the second half of 2025, with growth led by infrastructure-related products and Blue Arc production ramp.

• Cautious on timing of parcel and motorhome market recovery; improvement expected as year progresses.

• Management expects to leverage product innovations and recent acquisitions for long-term growth.