AEBI

Aebi Schmidt is a transformed company post the July 1, 2025 Shyft merger, with FY2025 revenue jumping 40.6% to $1.53B and total assets nearly doubling (+84.6% to $2.01B) as management pursues its stated goal to 'develop our market share in North America' and 'leverage Shyft's innovative design and manufacturing capabilities.' The strategic logic is reasonable — a Swiss specialty-vehicle maker bolting on a North American niche leader in commercial/RV chassis — and the top line confirms the scale-up. But the quality of the FY2025 print is poor: net income collapsed 68.3% to $9.74M, diluted EPS fell 77.6% to $0.17, operating cash flow cratered 87.0% to just $8.97M, and D&A jumped 67.3% to $44.2M (consistent with purchase-accounting step-ups). Operating margin compressed to 4.8% and net margin to 0.6% — this is a low-margin industrial in the middle of a digestion phase, not a compounder hitting its stride.