• Revenue: $194.1 million, down 4% from $201.3 million in the prior year quarter.

• Net Income: $3.1 million or 9 cents per share, compared to $4.5 million or 13 cents per share in the previous year.

• Adjusted EBITA: $14.3 million or 7.4% of sales, up from $11 million or 5.5% of sales in the third quarter of 2023.

• EV Program Spend: $6.1 million, down from $7.6 million in the prior year.

• Adjusted Net Income: $6.1 million.

• Adjusted EPS: 18 cents per share.

• Fleet Vehicles and Services Sales: $105.9 million, down 15% from a year ago.

• Fleet Vehicles and Services Adjusted EBITA Margin: 9.3% of sales, up 2.9 points versus the third quarter last year.

• Fleet Vehicles and Services Backlog: $268 million, down 18% versus the end of 2023.

• Specialty Vehicles Sales: $87.4 million, up 14% compared to last year.

• Specialty Vehicles Adjusted EBITA: $16.1 million or 18.5% of sales.

• Specialty Vehicles Backlog: $77.5 million, down 8% versus the end of 2023.

• Full Year Adjusted EBITA Outlook: Expected to be in the range of $45 to $50 million.

• Full Year Sales Outlook: Approximately $800 million.

• Net Leverage: 2.2 times.

• Free Cash Flow Outlook: Approximately $30 million.

• Warning! GuruFocus has detected 5 Warning Signs with SHYF.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Shyft Group Inc (NASDAQ:SHYF) achieved a 31% increase in adjusted EBITA compared to the previous year, demonstrating strong operational performance.

• The company's fleet vehicles and services business expanded margins to 9.3% of sales, showing consistent improvement despite a soft market.

• The acquisition of independent truck upfitters has expanded SHYF's vocational truck products and capabilities, with synergies already being realized.

• Initial production of the Blue Arc vehicles is underway, with a robust nationwide dealer and service network established.

• The company is maintaining its adjusted EBITA outlook for 2024, expecting growth of 19% versus the prior year, indicating confidence in financial performance.

Negative Points

• Sales for the third quarter were down 4% from the prior year, indicating challenges in market demand.

• Net income decreased to $3.1 million from $4.5 million in the previous year, reflecting financial pressures.

• Fleet vehicles and services sales were down 15% year-over-year, highlighting ongoing market softness.

• The backlog for fleet vehicles and services decreased by 18% compared to the end of 2023, suggesting potential future revenue challenges.

• The company remains cautious about the rate of electric vehicle adoption, indicating uncertainty in customer purchasing plans.