SHYF Q1 Earnings Call: Outperformance Driven by Operational Gains and Blue Arc Progress

SHYF Cover Image — SHYF Q1 Earnings Call: Outperformance Driven by Operational Gains and Blue Arc Progress

Adam Hejl

Mon, May 12, 2025, 4:37 AM 6 min read

Vehicle manufacturer Shyft (NASDAQ:SHYF) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 3.4% year on year to $204.6 million. The company’s full-year revenue guidance of $920 million at the midpoint came in 3.8% above analysts’ estimates. Its non-GAAP profit of $0.07 per share was significantly above analysts’ consensus estimates.

Is now the time to buy SHYF? Find out in our full research report (it’s free).

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
Free Cash Flow was -$9.5 million compared to -$9.68 million in the same quarter last year
Market Capitalization: $328 million

StockStory’s Take

Shyft’s first quarter results reflected operational improvements and early contributions from its Blue Arc electric vehicle line. Management highlighted that Fleet Vehicles and Services (FVS) margin expansion was achieved through cost controls and productivity gains, while Specialty Vehicles continued to deliver high-margin results. CEO John Dunn noted that Blue Arc’s first contract for FedEx was largely completed in the quarter, with customer trials and positive feedback supporting future opportunities.

Looking forward, management reiterated its full-year guidance, citing a cautious view of parcel market recovery and ongoing macroeconomic uncertainty, particularly regarding tariffs. CFO Scott Ocholik stated, “We are taking actions to help mitigate [tariffs]... and we continue to have flexibility as we move forward.” Leadership underscored the importance of monitoring order activity and quoting trends as key indicators for the second half of the year.

Key Insights from Management’s Remarks

Management attributed first quarter outperformance to a mix of operational execution, margin improvement in core segments, and early revenue from emerging products. Updates from both established and new product lines, as well as the pending Aebi Schmidt merger, were central topics on the call.

Blue Arc deployment progress: Blue Arc, Shyft’s electric vehicle platform, made notable headway with active deliveries to FedEx and several pilot programs underway. Management reported positive customer feedback and ongoing discussions for additional orders, positioning Blue Arc as a potential growth lever as fleet electrification gains traction.
Fleet Vehicles and Services margin gains: The FVS segment achieved significant year-over-year margin improvement, primarily through productivity initiatives and improved business mix. Despite lower overall sales from parcel markets, upfit and aftermarket businesses helped offset declines, with increased quoting activity suggesting potential for second-half recovery.
Specialty Vehicles resilience: Specialty Vehicles maintained high margins, supported by steady service truck demand and effective cost management. The segment’s backlog grew versus both the prior year and year-end, signaling sustained infrastructure and utility market demand.
Product portfolio expansion: At the NTEA Work Truck Show, Shyft unveiled two new models: the Utilimaster Trademaster Service Body and the Marketplace Dry Freight Truck. These vehicles, available for both traditional and electric fleets, are designed to address customer needs for durability and efficiency.
Aebi Schmidt merger update: The proposed combination with Aebi Schmidt advanced with the filing of a preliminary S-4 and syndication of a $600 million credit facility. Management emphasized the strategic fit and anticipated benefits of a broader product and geographic footprint, but refrained from providing additional financial details with regulatory review pending.

Drivers of Future Performance

Management’s near-term outlook centers on the pace of parcel and motorhome market recovery, customer adoption of new vehicle platforms, and the evolving impact of tariffs. The company’s ability to offset cost pressures and convert quoting activity to orders will shape results for the remainder of the year.

Parcel and motorhome market timing: Shyft expects the majority of annual profit to be generated in the second half, contingent on a rebound in parcel and motorhome demand. Management pointed to increased quoting activity as a leading indicator but remained cautious on timing.
Tariff response and supply chain: Ongoing tariff changes present uncertainty, but management outlined contingency plans, including price adjustments and sourcing from U.S.-based suppliers, to mitigate potential impacts on profitability.
Blue Arc order conversion: Continued customer trials and feedback for Blue Arc vehicles will determine the pace of future orders. Management expressed optimism about the pipeline but flagged that further order growth remains dependent on successful pilot outcomes and broader EV adoption.

Catalysts in Upcoming Quarters

Over the next few quarters, the StockStory team will monitor (1) progress on Blue Arc order conversions and expansion into new fleet customers, (2) tangible signs of parcel and motorhome market recovery reflected in order intake and backlog growth, and (3) any updates on the regulatory approval and integration planning for the Aebi Schmidt merger. Execution on supply chain adaptation to tariffs will also be a critical marker.

Shyft currently trades at a forward P/E ratio of 8.7×. At this valuation, is it a buy or sell post earnings? Find out in our free research report.

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