Aebi Schmidt Holding AG Q4 FY2025 earnings call

• 2025 was historical year with acquisition of Schiff Group and listing on Nostoc. Order intake Q4 up 46% vs 2024, adjusted EBITDA up 31% y-o-y for Q4, leverage reduced to 2.8 times. • Order momentum driven by strong orders in airport, municipal, and walking van recovery. • Europe and rest of world strong contributor with organic growth, accelerated cost synergies of shift. • M&A strategy continues with smaller acquisitions like LWS in US and Blood Oak in Germany. • Launched multiple new products including first service body jointly developed by monroe and royal, new compact airport products. • Opened new locations and secured major first-time customers. • Simplifying brand architecture. • North America airport business strong order entry, walk-in vent market recovery with market share growth, commercial side softness offset by stronger fleet demands, municipal segment strong quoting and order entry. • Europe and rest of world 2025 order intake growth and strong profitability, airport segment with large tenders expected, municipal sector double-digit growth, agricultural products up over 30% y-o-y. • 2026 expects leverage of expanded dealer network, factory efficiency programs, regional back office consolidation for improved performance.

Fourth quarter order intake increased 46% vs 2024, ended 2025 with record high order backlog. Adjusted EBITDA increased 31% y-o-y for Q4, margin 9.1% vs 7.4% prior year. Net sales Q4 grew 6% y-o-y. Europe and rest of world strong contributor with organic growth. North America sales decreased 2% y-o-y due to weakness in acquired shift businesses. Europe and rest of world sales increased 25% in Q4, contributed over one-third of total net sales. Full-year pro forma adjusted EBITDA up 13% y-o-y to 156 million with 8.2% margin. Q4 adjusted EBITDA 48.1 million, margin 9.1%. North America EBTA margin flat, Europe and rest of world EBITDA growth with 600 basis points improvement. Networking capital decreased 29 million to 423 million as of Dec 2025. Net debt decreased to 437 million, leverage 2.8 times as of year-end 2025.

• Expect net sales between 1.95 and 2.15 billion and adjusted EBITDA between 175 and 195 million in 2026. • Expect pronounced quarterly seasonality in 2026, Q1 start slow, Q2 order conversion accelerate, Q3 improving market conditions in commercial and fleet markets and realization of procurement synergies, Q4 benefit from seasonal strength. • Aim to maintain strong order momentum, accelerate backlog conversion into net sales through better production efficiency, drive profitability through efficiency gains at legacy shift, optimize footprint utilization, and maintain focus on leverage and balance sheet.

Q: Talk about order momentum in walk-in van market, how much renewal vs demand.

A: Stephan says it's a combination of renewal and additional demand, structural and sustainable demand.

Q: Backlog duration, increasing or decreasing vs a year ago.

A: Stephan says backlog increased on a year-over-year basis, with strong backlog in municipal, airport, and walk-in van business, but challenges in commercial and truck body market.

Q: Truck body business performance in 2026, new products.

A: Stefan says introduced new service body on commercial side, new product with Isuzu called Advantic, doesn't expect to outperform market in 2026 but builds foundation.

Q: E-commerce company change away from USPS, impact on Abishmit.

A: Stefan believes it's an advantage for Abishmit, product portfolio can participate.

Q: Adjusted EBITDA guide for 2026, synergies realization.

A: Marcus says midpoint 185 of adjusted EBITDA guidance, realized mid-teens synergies in 2025, expect same in 2026 with procurement synergies kicking in Q3 2026 and revenue synergies in second half of 2026.

Q: Pronounced seasonality in 2026, factors and segments.

A: Marcus says seasonality more pronounced due to ordering cycles, snow business, walk-in van orders materializing in Q2, one-off expenses in Q1, slower start in Q1 with impact in US, Europe Q1 improvement, commercial truck body softness persisting in Q1, geopolitical environment impact.