Shyft’s first quarter saw positive momentum, with financial results surpassing Wall Street expectations and prompting a strong market response. Management credited the company’s improved performance to operational efficiencies, timely execution on customer orders—particularly for Blue Arc electric vehicles—and margin expansion in the Fleet Vehicles and Services segment. CEO John Dunn pointed to successful delivery progress on the FedEx contract and robust service truck order intake as drivers of growth this quarter. Additionally, increased quoting activity from parcel customers and a focus on cost management helped offset ongoing softness in certain end markets. Dunn emphasized, “We delivered meaningful adjusted EBITDA growth for the company with margins of 6%, which doubled year-over-year."
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Shyft (SHYF) Q1 CY2025 Highlights:
- Revenue: $204.6 million vs analyst estimates of $198.9 million (3.4% year-on-year growth, 2.8% beat)
- Adjusted EPS: $0.07 vs analyst estimates of -$0.10 (significant beat)
- Adjusted EBITDA: $12.28 million vs analyst estimates of $3.19 million (6% margin, significant beat)
- The company reconfirmed its revenue guidance for the full year of $920 million at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $0.80 at the midpoint
- EBITDA guidance for the full year is $67 million at the midpoint, above analyst estimates of $63.36 million
- Operating Margin: 0.9%, up from -1% in the same quarter last year
- Market Capitalization: $413.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Shyft’s Q1 Earnings Call
- Matt Koranda (ROTH Capital): Asked if Blue Arc’s FedEx order would be fully recognized in Q2 and how incremental Blue Arc revenues would shape the rest of the year. CEO John Dunn clarified that while most vehicles would be delivered by Q2, ongoing customer pilots could result in further orders.
- Matt Koranda (ROTH Capital): Questioned how tariff risks were factored into full-year guidance and whether the Aebi Schmidt merger would create new tariff exposures. CFO Scott Ocholik explained the company’s pricing actions and U.S. supplier partnerships, adding that flexibility remains amid policy changes.
- Mike Shlisky (D.A. Davidson): Inquired whether tariff concerns drove customers to accelerate orders or deliveries in Q1. Dunn responded that customer order timing had not been materially affected by tariff developments so far.
- Mike Shlisky (D.A. Davidson): Sought details on parcel and final-mile vehicle demand and whether second-half improvement was based on easier comparisons or new contracts. Dunn cited increased quoting activity and customer engagement as signals for a possible recovery.
- Tyler DiMatteo (BTIG): Requested an update on Blue Arc’s battery supply and the status of the partnership with Our Next Energy. Dunn stated that battery supply performance remained strong and no delivery issues were expected this year.
Catalysts in Upcoming Quarters
In coming quarters, our team will be focused on (1) tracking the pace of Blue Arc EV order conversions and customer feedback, (2) monitoring signs of recovery in parcel and motorhome market demand, and (3) assessing progress on the Aebi Schmidt merger and related integration activities. The success of new product launches and the effectiveness of tariff mitigation will also be important indicators of future performance.
Shyft currently trades at $12.09, up from $7.29 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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