REV Group Reports Strong Financial Performance

By Ahmed Jameison • Wednesday, June 04 15:30 • Permanent Link

REV Group, Inc. has recently released its 10-Q report, providing an in-depth look into its financial performance. The company designs, manufactures, and distributes specialty vehicles and related aftermarket parts and services in North America and internationally. It operates through two segments: Specialty Vehicles and Recreational Vehicles. In the Specialty Vehicles segment, net sales increased by 3.8% to $453.9 million for the three months ended April 30, 2025, and Adjusted EBITDA increased by 66.6% to $56.3 million. For the Recreational Vehicles segment, net sales decreased by 2.4% to $175.3 million for the same period, and Adjusted EBITDA decreased by 9.9% to $10.9 million.

The backlog for the Specialty Vehicles segment stood at $4,282.0 million as of April 30, 2025, showing an increase compared to the previous year. However, the backlog for the Recreational Vehicles segment decreased to $267.9 million for the same period. The company's liquidity and capital resources seem to be sufficient to finance its operations and growth strategy for at least the next twelve months and beyond.

In terms of cash flow, net cash provided by operating activities for the six months ended April 30, 2025, was $103.9 million, primarily due to cash-related net income generated during the period. The company also repurchased and retired 3,456,979 shares under the 2024 Share Repurchase Program at a cost of $107.6 million during the same period.

REV Group, Inc. uses Adjusted EBITDA and Adjusted Net Income as primary financial performance measures. Adjusted EBITDA increased by 66.6% to $56.3 million for the Specialty Vehicles segment, while it decreased by 9.9% to $10.9 million for the Recreational Vehicles segment for the three months ended April 30, 2025. Adjusted Net Income and Adjusted EBITDA are used by the company's management and Board of Directors for measuring and reporting financial performance and as a measurement in incentive compensation for management.

Following these announcements, the company's shares moved 15.72%, and are now trading at a price of $43.07. For more information, read the company's full 10-Q submission here.

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