REV Group (REVG) Q4 & Investor Day 2024 earnings summary

Executive summary

• Fiscal 2024 net sales were $2.38 billion, down year-over-year due to divestitures and lower RV sales, but Adjusted EBITDA rose 4% to $162.8 million, with margin expansion and record Specialty Vehicles backlog.

• Net income for fiscal 2024 was $257.6 million, a significant increase driven by divestiture gains and Specialty Vehicles performance.

• Specialty Vehicles segment achieved record backlog and margin, while the company exited both Collins and ENC bus businesses, streamlining operations.

• Board and management changes included new directors, a new CFO, and performance-based executive compensation to enhance governance.

• A new $250 million share repurchase program and a 20% dividend increase were announced, reflecting long-term confidence.

Financial highlights

• Fourth quarter net sales were $597.9 million, down 6.4% year-over-year excluding Collins Bus, with Adjusted EBITDA up 22.2% to $49.6 million.

• Specialty Vehicles Q4 net sales (excluding Collins) increased 3.6% year-over-year to $440 million, with Adjusted EBITDA up 67.9% to $50.2 million (11.4% margin).

• Recreational Vehicle Q4 sales fell 26.5% year-over-year to $158.1 million, with Adjusted EBITDA down 57.6% to $8.1 million (5.1% margin).

• Year-end net debt was $60.4 million, with $24.6 million cash and $350 million available under the ABL facility.

• Adjusted free cash flow for fiscal 2024 was $102.2 million, with trade working capital down $70.3 million year-over-year.

Outlook and guidance

• Fiscal 2025 guidance: net sales of $2.3–$2.4 billion, Adjusted EBITDA of $190–$220 million, Adjusted Net Income of $116–$140 million, and free cash flow of $90–$110 million.

• Net income expected at $98–$125 million; capital expenditures forecast at $30–$35 million.

• Specialty Vehicles revenue expected to grow high single- to low double-digits; Recreational Vehicle revenue to be roughly flat.

• 2027 targets: 6–8% annual net sales growth, 10–12% consolidated Adjusted EBITDA margin, >$350 million cumulative free cash flow, and ROIC >15%.

• Management expects continued earnings momentum and sustainable growth, supported by operational excellence and strategic capital allocation.