Aebi Schmidt Holding AG (NASDAQ:AEBI) shares climbed 7.7% in Thursday premarket trading after the company reported second-quarter revenue above Wall Street expectations and delivered a sharp improvement in profitability. Strong order intake and a growing backlog provided further support, while management reaffirmed its full-year 2026 outlook.
Aebi Schmidt Q2 revenue beats expectations
Aebi Schmidt generated second-quarter revenue of $496.41 million, comfortably exceeding the analyst consensus estimate of $476.07 million.
Revenue increased 9% compared with the same period last year, supported by an expanding market presence and solid execution across several of the company’s key end markets.
The stronger top-line performance was accompanied by a significant turnaround in earnings.
Net income reached $10.5 million, compared with a net loss of $7.9 million in the second quarter of the previous year.
Adjusted EBITDA rises 22%
Adjusted EBITDA increased 22% year over year to $42.1 million, outpacing the company’s 9% revenue growth.
Adjusted EBITDA represented 8.5% of net sales during the quarter.
The improvement reflected realised synergies alongside efficiency gains as operational activities continued to ramp up.
“Aebi Schmidt delivered an excellent second quarter, marked by a significant improvement in profitability,” said Barend Fruithof, Chairman and Group CEO. “Adjusted EBITDA increased 22%, over-proportionally to an already strong 9% growth in Net Sales, reflecting the execution of operational initiatives.”
The faster pace of EBITDA growth relative to revenue indicates that the company’s operational measures are beginning to generate stronger leverage across the business.
Order intake climbs 16%
New business momentum remained strong during the second quarter, with order intake increasing 16% year over year to $516 million.
Demand was supported by the Airport, Walk-in Van and Municipal businesses, alongside a large Truck Body order.
The strong intake pushed the company’s order backlog substantially higher, providing greater visibility over future sales.
Backlog reached $1.279 billion, representing a 20% increase compared with the same period last year.
The growing pipeline supports management’s expectations for continued activity during the remainder of 2026 and beyond.
Full-year 2026 guidance maintained
Following the stronger second-quarter performance, Aebi Schmidt reaffirmed its existing financial outlook for 2026.
The company continues to expect full-year net sales of between $1.95 billion and $2.15 billion.
The midpoint of $2.05 billion is slightly above the current analyst consensus estimate of $2.045 billion.
Adjusted EBITDA is still expected to fall within a range of $175 million to $195 million.
Maintaining the guidance suggests management remains confident that its order backlog and operational improvements can support performance through the second half of the year.
Debt and leverage move lower
Aebi Schmidt also made further progress in strengthening its balance sheet during the quarter.
Net debt declined to $450 million at the end of the second quarter, down $5 million from the first quarter.
The company’s leverage ratio improved to 2.72x from 3.28x in the comparable prior-year period.
Lower leverage, combined with stronger profitability and a growing order book, provides additional financial flexibility as the company continues executing its growth strategy.
Investors welcome stronger orders and profitability
The 7.7% premarket rise in Aebi Schmidt shares reflected a combination of better-than-expected revenue, improving profitability and strong forward order visibility.
Revenue growth of 9% was accompanied by a 22% increase in adjusted EBITDA, while the 16% rise in order intake helped lift backlog to $1.279 billion.
With full-year guidance maintained and leverage continuing to decline, investors will now be watching whether Aebi Schmidt can convert its record of stronger orders into sustained revenue and earnings growth through the remainder of 2026.