Revenue surged 78.7% YoY in 2026Q2 to $496.4M, but gross margin compressed to 19.6% and operating margin only reached 5.4%, indicating the merger is not generating expected operating leverage.
Aebi Schmidt Holding AG (AEBI) annual income statement — 3-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Sales/Revenue | 2.08B | 1.53B | 1.09B | 1.02B |
| Revenue Growth % | - | 40.58% | 6.93% | - |
| Cost of Goods Sold | 1.69B | 1.22B | 857.72M | 808.92M |
| COGS % of Revenue | - | 80.08% | 78.98% | 79.65% |
| Gross Profit | 384.25M | 304.05M | 228.24M | 206.65M |
| Gross Margin % | 18.5% | 19.92% | 21.02% | 20.35% |
| Gross Profit Growth % | - | 33.22% | 10.45% | - |
| Operating Expenses | 280.03M | 230.99M | 159.75M | 147.62M |
| OpEx % of Revenue | - | 15.13% | 14.71% | 14.54% |
| Selling, General & Admin | 240.83M | 180.65M | 124.66M | 117.06M |
| SG&A % of Revenue | - | 11.83% | 11.48% | 11.53% |
| Research & Development | 32.54M | 26.49M | 19.56M | 17.13M |
| R&D % of Revenue | - | 1.74% | 1.8% | 1.69% |
| Other Operating Expenses | 0 | 23.85M | 15.53M | 13.44M |
| Operating Income | 104.35M | 73.07M | 68.49M | 59.03M |
| Operating Margin % | 5.02% | 4.79% | 6.31% | 5.81% |
| Operating Income Growth % | - | 6.68% | 16.02% | - |
| EBITDA | 151.84M | 117.27M | 94.91M | 86.2M |
| EBITDA Margin % | 7.31% | 7.68% | 8.74% | 8.49% |
| EBITDA Growth % | - | 23.56% | 10.1% | - |
| D&A (Non-Cash Add-back) | 48.09M | 44.2M | 26.41M | 27.16M |
| EBIT | 79.95M | 52.99M | 75.77M | 55.38M |
| Net Interest Income | -51.6M | -41.79M | -34.11M | -38.03M |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 51.6M | 41.79M | 34.11M | 38.03M |
| Other Income/Expense | -75.99M | -61.87M | -26.83M | -41.69M |
| Pretax Income | 28.36M | 11.19M | 41.66M | 17.35M |
| Pretax Margin % | 1.36% | 0.73% | 3.84% | 1.71% |
| Income Tax | 7.06M | 1.49M | 10.93M | 6.15M |
| Effective Tax Rate % | 24.9% | 13.28% | 26.23% | 35.44% |
| Net Income | 21.37M | 9.74M | 30.68M | 11.2M |
| Net Margin % | 1.03% | 0.64% | 2.83% | 1.1% |
| Net Income Growth % | - | -68.26% | 173.97% | - |
| Net Income (Continuing) | 21.3M | 9.71M | 30.74M | 11.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | -12.4K | 50K | 83K | 3K |
| EPS (Diluted) | 0.28 | 0.17 | 0.40 | 0.14 |
| EPS Growth % | - | -57.5% | 185.71% | - |
| EPS (Basic) | - | 0.17 | 0.40 | 0.14 |
| Diluted Shares Outstanding | 77.52M | 58.78M | 77.6M | 77.6M |
| Basic Shares Outstanding | 77.18M | 58.66M | 77.6M | 77.6M |
| Dividend Payout Ratio | - | 137.95% | 10.51% | 18.48% |
Quick answers to the most common questions about buying AEBI stock.
For fiscal year 2025, Aebi Schmidt Holding AG (AEBI) reported total revenue of $1.53B. This represents a 50.3% increase compared to $1.02B in 2023.
Aebi Schmidt Holding AG (AEBI) is profitable, generating $9.7M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Aebi Schmidt Holding AG (AEBI) reported an operating income of $73.1M, resulting in an operating profit margin of 4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Aebi Schmidt Holding AG (AEBI) generated $304.1M in gross profit for the year, representing a gross profit margin of 19.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression amid rapid growth
Metrics are mathematically derived from official filings.
Acquisition-Fueled Revenue Surge
AEBI's revenue growth accelerated dramatically to 78.7% YoY in 2026Q2, a stark acceleration from the 133.3% reported in 2026Q1, strongly suggesting the inorganic impact of the Shyft Group merger is now fully consolidated into the base.
The reported growth rates are clearly driven by the merger, not organic momentum, as evidenced by the step-change in revenue scale from ~$250M to ~$500M+ per quarter. This inorganic surge masks the underlying organic growth trajectory, which appears to be modest given the pre-merger revenue base. Investors should monitor organic growth ex-merger to assess true demand for AEBI's specialized vehicles.
Gross Margin Erosion Post-Merger
Gross margin compressed to 19.6% in 2026Q2 from a pre-merger average above 20%, indicating the Shyft integration may be introducing lower-margin revenue streams or facing immediate cost synergies.
The decline from the 20.5% gross margin in 2025Q2 to 19.6% in 2026Q2 suggests the combined entity is not yet realizing procurement benefits and may be absorbing higher input costs. This margin pressure is particularly concerning given AEBI's historically thin profitability, as it leaves minimal buffer for operational missteps or commodity volatility.
Operating Leverage Fails to Materialize
Despite revenue more than doubling, operating margin only expanded to 5.4% in 2026Q2 from 5.0% in 2025Q2, indicating significant SG&A and overhead absorption is offsetting gross profit gains.
The modest operating margin improvement suggests that SG&A expenses, likely inflated by integration costs and the expanded corporate structure, are scaling nearly in line with revenue. This lack of operating leverage implies that the merger has not yet created a more efficient cost structure, and the combined entity is operating with significant overhead.
Net Income Volatility and Low Quality
Net income swung from a loss of $2.3M in 2025Q2 to a profit of $10.5M in 2026Q2, yet the net margin remains a razor-thin 2.1%, indicating earnings are highly sensitive to non-operational items and integration charges.
The extreme volatility in net income, including a near-breakeven quarter in 2026Q1 ($0.9M), suggests that reported earnings are heavily influenced by one-time items, tax adjustments, or foreign exchange effects rather than core operational performance. The minimal net margin leaves no room for error, and any minor cost overrun could easily push the company back into a loss.
SG&A Burden Intensifies with Scale
SG&A expenses surged to $55.7M in 2026Q2 from $33.6M in 2025Q2, a 65.8% increase that outpaced the 78.7% revenue growth, suggesting limited cost discipline during the integration phase.
The rapid expansion of SG&A indicates that the combined corporate overhead is growing faster than the business can efficiently absorb, potentially due to duplicate systems, integration teams, or expanded sales forces. This cost structure is unsustainable without a corresponding improvement in gross margin or a significant rationalization of the combined entity's administrative functions.
Merger Synergies Remain Unproven
The core bear case is that AEBI's 40.6% TTM revenue growth is entirely inorganic, while the 0.6% net margin suggests the merger is destroying value through integration costs rather than creating it.
Short-sellers would focus on the disconnect between the massive revenue surge and the negligible net profit, arguing that management has overpaid for growth that is not translating to shareholder returns. The combination of high leverage (0.93 D/E) and weak returns (1.7% ROE) suggests the company may be financially constrained, limiting its ability to invest in the R&D needed to maintain its technical moat in a competitive market.