REV Group (REVG) Q4 2025 earnings summary

Executive summary

• Announced a strategic merger with Terex Corporation, expected to close in the first half of 2026, aiming to enhance scale, market position, and long-term value creation, with integration planning underway and segment management teams to remain intact.

• Achieved record free cash flow of $190 million and returned over $120 million to shareholders via buybacks and dividends in fiscal 2025.

• Operational improvements in specialty vehicles and disciplined cost management in recreational vehicles led to increased throughput, efficiency, and improved inventory and cash conversion.

• Continued investments in facilities, automation, and capacity expansion, particularly in fire and ambulance segments, targeting efficiency and throughput gains.

• Net income for the year was $95.2 million, down from $257.6 million in 2024, with Adjusted Net Income at $135.8 million.

Financial highlights

• Full year 2025 consolidated net sales reached $2.46 billion, up 3.5% year-over-year; excluding exited bus businesses, net sales rose 11.1%.

• Full year consolidated Adjusted EBITDA was $229.5 million, up 58.1% year-over-year excluding bus business, with margin improving by 280 basis points.

• Fourth quarter net sales were $664.4 million, up 13% year-over-year excluding bus business; Adjusted EBITDA was $69.7 million, up 39.7%.

• Gross profit for the year was $369.8 million, and operating income was $182.2 million, more than doubling from 2024.

• Free cash flow for the year was $190 million, with operating cash flow at $241.1 million.

Segment performance

• Specialty Vehicle segment Q4 sales were $507.4 million, up over 15% year-over-year excluding bus business; Adjusted EBITDA was $70.5 million, up over 39%.

• Specialty Vehicle backlog grew to $4.4 billion, up 5.3% year-over-year, with a book-to-bill ratio above one, driven by demand for fire apparatus and ambulances.

• Recreational Vehicle segment Q4 sales were about $157 million, flat year-over-year; Adjusted EBITDA was $9 million, up 11.1%.

• Recreational Vehicle backlog declined 20% to $233 million, reflecting a challenging retail environment and lower order intake.

• Recreational Vehicle segment benefited from favorable product mix and cost actions, but faced softer market demand.