REV Group (REVG) Q1 2025 earnings summary

Executive summary

• Record first quarter Adjusted EBITDA of $36.8M, driven by Specialty Vehicles and operational improvements, with net sales of $525.1M, down year-over-year due to bus manufacturing exit and divestitures; excluding bus, net sales rose 3.1%.

• Net income was $18.2M, down from $182.7M in Q1 2024, which included a $257.5M gain from the Collins divestiture.

• Backlog reached $4.5B, providing 2–2.5 years of demand visibility, led by strong fire apparatus and ambulance orders in Specialty Vehicles.

• Strategic vision and intermediate financial targets were unveiled at Investor Day, focusing on operational improvements and disciplined execution.

• Reaffirmed full-year 2025 guidance and resumed share repurchases, buying back 0.6M shares for $19.2M.

Financial highlights

• Adjusted EBITDA margin improved to 7.0% from 5.2% year-over-year; gross profit rose to $69.8M (13.3% margin) from $62.9M (10.7%).

• Specialty Vehicle segment sales (ex-bus) grew 8.7% year-over-year to $417.2M; Adjusted EBITDA up 116% to $35.2M, with a record 9.5% margin.

• Recreational Vehicle segment sales fell 8.5% to $155.0M; Adjusted EBITDA down 20.7% to $9.2M, impacted by lower shipments and inflation.

• Net debt at quarter-end was $108.4M, with $31.6M cash on hand and $262.9M available on the ABL facility.

• SG&A expenses fell 25.6% to $41.2M, reflecting lower transaction and legal costs and the absence of Bus Manufacturing Businesses.

Outlook and guidance

• Fiscal 2025 guidance reaffirmed: consolidated net sales of $2.3–$2.4B, adjusted EBITDA of $190–$220M, supported by robust backlog and operational initiatives.

• Specialty Vehicle segment expected to see high single to low double-digit revenue growth; Recreational Vehicle segment revenue and EBITDA expected to be flat year-over-year.

• Management expects continued growth in Specialty Vehicles, supported by strong backlog and order intake for fire apparatus and ambulances.

• Dealer restocking opportunities expected following strong sales at the 2025 Tampa SuperShow.

• Quarterly dividend of $0.06 per share is expected to continue, subject to board discretion and liquidity.