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The Shyft Group's Financial Update for Fourth Quarter and Full-Year 2024

The Shyft Group, a leading manufacturer of specialty vehicles in North America, recently unveiled its financial performance for the fourth quarter and the entire year of 2024. This release sheds light on the company's operational metrics, strategic moves, and future expectations as it navigates a fluctuating market landscape.

Fourth Quarter Highlights

For the fourth quarter ending December 31, 2024, The Shyft Group reported sales amounting to $201.4 million, reflecting a slight drop of 0.4% from the previous year's $202.3 million. Despite this dip, the company experienced significant operational enhancements, leading to improved profitability metrics.

Net losses narrowed to $3.4 million, or ($0.10) per share, in comparison to a loss of $4.4 million, or ($0.13) per share, the prior year. Notably, the results included $8.5 million in transaction expenses, which impacted overall profitability. Furthermore, the adjusted EBITDA surged to $15.9 million, which constituted 7.9% of sales—a significant uptick from $2.3 million, or 1.1% of sales recorded in Q4 of 2023.

The company's consolidated backlog at the end of 2024 stood at $313.2 million, down 23.5% from $409.3 million at the close of 2023. This decrease highlights the competitive pressures and shifts in demand across the industry.

Full-Year Insights

Summarizing the entire year, The Shyft Group reported total sales of $786.2 million, which marked a 9.9% decrease from $872.2 million in 2023. The net loss for 2024 was $2.8 million, translating to ($0.08) per share, contrasting sharply with a profitable $6.5 million, or $0.19 per share, in 2023. The adjusted net income settled at $15.0 million, equivalent to $0.44 per share, down from $18.7 million, or $0.54 per share, in the previous year.

Despite these figures, the company’s adjusted EBITDA for the year reached $48.8 million, revealing a growth trend as a percentage of sales, moving from 4.6% to 6.2% year-over-year. Notably, the fiscal year included $23.3 million in expenses related to EV pre-production, a decrease from $32.6 million in the prior year, pointing to operational efficiency improvements.

Strategic Developments

Looking forward, The Shyft Group is poised for potential growth. They have recently initiated a merger agreement with Aebi Schmidt, which aims to enhance the company's position in the specialty vehicle sector and leverage combined resources for growth. The merger is expected to close by mid-2025.

In a statement, John Dunn, the company's President and CEO, remarked, "Our disciplined execution of Shyft's operational framework drove meaningful adjusted EBITDA growth and margin improvement. SV sustained strong profitability amid steady demand while FVS achieved double-digit margins despite a challenging market for parcel delivery."

Outlook for 2025

The company projects a full-year sales outlook between $870 to $970 million, signaling a 17% year-over-year increase at the midpoint. With the anticipated recovery of the parcel market and the production ramp-up of their innovative Blue Arc EV trucks, The Shyft Group expects to enhance profitability throughout 2025.

Interim CFO Scott Ocholik further noted, "Blue Arc EV transitioning into production is expected to boost operations and complement the recovery of service demands in the latter half of the fiscal year."

Overall, despite the challenges faced in the previous year, The Shyft Group is navigating through these hurdles with a strategic focus on operational excellence, investment in innovation, and preparation for a merger that will position them as a stronger competitor in the marketplace.

The Shyft Group will continue to update stakeholders on its progress and financial health in conference calls and regular disclosures, ensuring transparency as they forge ahead into 2025 with renewed optimism.