In the first quarter, the company reported revenues amounting to $204.6 million, surpassing the market's anticipation of $198.97 million. The CEO, John Dunn, expressed satisfaction with the company's performance at the onset of the year, attributing the success to the team's effective execution of strategic goals.
The results highlight the company’s progress in improving operational efficiency and pursuing commercial growth initiatives, which are pivotal to gaining a larger market presence. This positive kickoff indicates strong potential for continued market expansion and shareholder value enhancement.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for The Shyft Group Inc (SHYF, Financial) is $15.50 with a high estimate of $16.00 and a low estimate of $15.00. The average target implies an upside of 112.04% from the current price of $7.31. More detailed estimate data can be found on the The Shyft Group Inc (SHYF) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, The Shyft Group Inc's (SHYF, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Shyft Group Inc (SHYF, Financial) in one year is $16.25, suggesting a upside of 122.3% from the current price of $7.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Shyft Group Inc (SHYF) Summary page.
SHYF Key Business Developments
Release Date: February 20, 2025
- Revenue: $201.4 million for Q4, down slightly from $202.3 million in the prior year.
- GAAP Net Loss: $3.4 million or $0.10 per share, compared to a net loss of $4.4 million or $0.13 per share in the previous year.
- Adjusted EBITDA: $15.9 million for Q4, or 7.9% of sales, up from $2.3 million or 1.1% of sales in Q4 2023.
- Adjusted Net Income: $5 million for Q4, with adjusted EPS of $0.15 per share, compared to a loss of $900,000 or negative $0.03 per share in Q4 2023.
- Fleet Vehicles and Services Sales: $110.7 million, down 7% from $119 million a year ago.
- Fleet Vehicles and Services Adjusted EBITDA: $12.1 million, with a margin of 10.9% of sales, compared to a negative 2.2% in Q4 last year.
- Specialty Vehicles Sales: $87.5 million, a 5% increase from $83.4 million in the prior year.
- Specialty Vehicles Adjusted EBITDA: $16.6 million or 19% of sales, compared to $19 million or 22.8% of sales in the same period last year.
- 2025 Sales Outlook: Expected to be in the range of $870 to $970 million.
- 2025 Adjusted EBITDA Outlook: Expected to be in the range of $62 to $72 million.
- 2025 Adjusted EPS Outlook: Expected to be in the range of $0.69 to $0.92 per share.
- Free Cash Flow: Expected to be $25 to $30 million for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Shyft Group Inc (SHYF, Financial) achieved significant operational improvements and solid financial performance in 2024.
- The proposed merger with Abby Schmidt is expected to create a highly competitive specialty vehicles leader with enhanced scale and capabilities.
- The company successfully launched Blue Arc EV trucks, marking a milestone in sustainable fleet operations.
- Operational efficiencies led to a 160 basis point increase in adjusted EBITDA margins, reaching 6.2% year over year.
- The company's balance sheet remains strong with net leverage less than 2 times, providing flexibility for strategic investments.
Negative Points
- The Shyft Group Inc (SHYF) reported a GAAP net loss of $3.4 million for the fourth quarter, impacted by $8.5 million in merger-related transaction costs.
- Sales for the fleet vehicles and service segment decreased by 7% year over year, reflecting continued softness in the parcel market.
- The backlog for fleet vehicles and services was down 24.7% at year-end, indicating ongoing challenges in parcel demand.
- The specialty vehicles segment experienced a decrease in adjusted EBITDA margin from 22.8% to 19% year over year.
- The company anticipates continued softness in parcel and motorhome markets through mid-2025, impacting near-term demand.
