The Shyft Group, Inc.

First-quarter sales were $204.6 million, up 3% from $197.9 million. GAAP net loss was $1.4 million, or negative $0.04 per share, versus a net loss of $4.7 million, or negative $0.14 per share, last year. Adjusted EBITDA was $12.3 million, or 6% of sales, compared with $6.1 million, or 3.1% of sales, in Q1 2024. Adjusted net income was $2.4 million and adjusted EPS was $0.07, versus adjusted EPS of negative $0.04 a year ago. Blue Arc generated $26.3 million of sales in the quarter from the FedEx order for 150 vehicles. By segment, FVS sales were $96.1 million and adjusted EBITDA was $3.6 million, while Specialty Vehicles sales were $82.2 million and adjusted EBITDA was $14.3 million. The company affirmed full-year 2025 guidance for sales of $870 million to $970 million, adjusted EBITDA of $62 million to $72 million, and free cash flow of $25 million to $30 million; management also said about 70% of full-year adjusted EBITDA is expected in the second half.

John Dunn framed the quarter as a strong start, emphasizing improved execution, expanding margins, and progress on strategic initiatives. He highlighted Blue Arc as an important growth platform, saying the FedEx trucks are already deployed and that the company is pursuing additional opportunities across end markets and geographies. He also pointed to new product launches at NTEA, record customer engagement, and a balance sheet with net leverage below 2x that gives Shyft flexibility to invest.

Scott Ocholik said results exceeded prior expectations, helped by operational improvements, cost control, and some sales that had originally been expected in Q2. He noted the quarter included $2.2 million of transaction costs tied to the proposed Aebi Schmidt merger, and that Blue Arc contributed $26.3 million of revenue. On the segment level, he cited FVS margin improvement to 3.8% from 0.9% and Specialty Vehicles margin of 17.3%, while also pointing to a solid backlog in SV of $90 million. He said the company remains on track for $25 million to $30 million of free cash flow and is using pricing actions, supplier partnerships, and U.S.-based sourcing alternatives to help offset tariff pressure.

Analysts focused on Blue Arc timing, tariffs, parcel demand, and the Aebi Schmidt merger. Management said the 150-unit FedEx order will finish in Q2, with additional Blue Arc orders still in the pipeline and customer trials generating positive feedback, though they remained “optimistic but cautious.” On tariffs, Scott said the company is monitoring developments closely, has already taken some pricing action, and is working with suppliers and U.S.-based alternatives to mitigate impact; John added they did not see major customer pull-forward tied specifically to tariffs. On Aebi Schmidt, Scott declined to comment on business trends or pro forma metrics beyond noting that the S-4 was recently filed.