Aebi Schmidt cuts 2026 guidance despite Q3 sales growth

Aebi Schmidt Group (NYSE:AEBI) reported third-quarter 2026 sales of US$493 million, up 4.6% year-over-year, while lowering its full-year sales and adjusted EBITDA guidance.

Sales growth was accompanied by higher net income and orders, with net income reaching US$10.8 million from US$1.2 million and orders increasing 2.0% to US$528 million.

The company reported that inflationary pressures affected its gross margin during the quarter.

Adjusted EBITDA increased 4.9% to US$44.2 million, with its margin unchanged at 9%, while gross margin declined 80 basis points to 19.2% and backlog increased 16.4% to US$1.3 billion.

Aebi Schmidt now expects full-year 2026 sales of US$1.95 billion–US$2.00 billion and Adjusted EBITDA of US$170 million–US$180 million, while targeting year-end leverage below 2.5 times.

Aebi Schmidt manufactures specialized vehicles and equipment for road maintenance, snow removal, public infrastructure maintenance and other municipal and industrial applications.

North American organic sales increased 7.9%, while European and rest-of-world sales declined 3.6%; the company also plans to acquire O.J. Watson, which generated approximately US$28 million in sales during its last fiscal year, to establish a direct presence in the Rocky Mountains.