Investment Thesis
Aebi Schmidt faces severe operational challenges despite solid revenue generation, with net margin collapsed to 0.1% and negative free cash flow of -$35M indicating the company is burning cash despite gross margins of 20.5%. High leverage (0.77x debt/equity) combined with negative operating cash flow and deteriorating profitability metrics suggest fundamental business stress that liquidity reserves cannot sustainably support.
AEBI Strengths
- Substantial revenue base of $998.3M demonstrates market presence in construction machinery sector
- Healthy gross margin of 20.5% indicates reasonable pricing power and production efficiency at product level
- Adequate liquidity position with current ratio of 2.10x and $126M cash provides short-term operational flexibility
AEBI Risks
- Negative free cash flow of -$35M and negative operating cash flow of -$24.6M indicate cash burn and inability to fund operations from operations
- Collapsed net profitability (0.1% net margin) with only $971K net income on $998.3M revenue signals severe cost structure problems or one-time charges
- High debt burden of $628.4M against only $126M cash with deteriorating operational performance raises refinancing and solvency concerns
- Very low returns on equity (0.1%) and assets (0.0%) indicate capital is not being deployed productively
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Net margin recovery and identification of whether 0.1% margin represents structural issues or non-recurring charges
- Debt levels and liquidity runway given ongoing cash burn
AEBI Financial Metrics
AEBI Profitability Ratios
AEBI Balance Sheet & Liquidity
AEBI 5-Year Financial Trend
5-Year Trend Summary: Aebi Schmidt Holding AG's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.28 reflects profitable operations.
AEBI Growth Metrics (YoY)
AEBI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $262.5M | $971.0K | $0.02 |
| Q2 2025 | $266.5M | -$235.0K | $-0.01 |
| Q1 2025 | $249.2M | $2.1M | $0.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AEBI Capital Allocation
AEBI SEC Filings
Access official SEC EDGAR filings for Aebi Schmidt Holding AG (CIK: 0002048519)