Core Insights - REV Group reported an 8% increase in consolidated mid-point revenue guidance and a 45% year-over-year increase in adjusted EBITDA guidance for fiscal 2025, driven by strong operational gains in the specialty vehicle segment [1] - The company announced a $20 million plant expansion, a strategic exit from the Lance Camper operation, and raised capital expenditure plans while addressing $15 million in expected tariff headwinds [1][6] Specialty Vehicle Segment Performance - The specialty vehicle segment, excluding divested bus operations, achieved a 12.2% revenue increase and a 74.3% surge in adjusted EBITDA compared to the prior year quarter, with record shipment levels in the Spartan Emergency Response business [2] - Segment backlog reached $4.3 billion at quarter-end, supported by a book-to-bill ratio of 1.1 and strong demand for fire apparatus [3][2] Portfolio Optimization - The divestiture of the Lance Camper operation resulted in a one-time $30 million non-cash loss, partially offset by a $16.6 million tax benefit, allowing the company to focus on scalable operations with stronger competitive positioning [4][5] - The motorized RV division continues to drive nearly all EBITDA for the recreation segment, maintaining a 6.2% adjusted EBITDA margin despite a 10% decline in REV brand retail sales [4] Tariff Impact and Strategic Adjustments - New tariffs are expected to impact adjusted EBITDA by $10 million in specialty vehicles and $5 million in recreation for the second half of the fiscal year, prompting a shift to U.S. suppliers for chassis sourcing [6][7] - The company has increased full-year capital expenditure guidance to $45 million–$50 million, with $20 million allocated for expansion projects [6] Future Outlook - Management raised consolidated FY2025 revenue guidance to $2.35 billion–$2.45 billion and adjusted EBITDA guidance to $200 million–$220 million, anticipating specialty vehicle outperformance to offset tariff pressures [8] - Net income guidance, including the Lance Camper divestiture loss, is now projected at $88 million–$107 million, with adjusted net income at $100 million–$130 million [8]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $629.1 million, an increase of $45.1 million or 7.7% compared to Q2 2024, excluding the impact of the divested E and C transit bus business [26][27] - Adjusted EBITDA for Q2 2025 was $58.9 million, a 63.6% increase year over year, excluding the impact of the divested bus business [27][29] - Cash flow from operating activities in the quarter was $117 million, with $11.4 million spent on capital expenditures [41][22] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased by $16.5 million to $453.9 million, with a 12.2% increase when excluding the divested transit bus business [29][30] - Recreational Vehicle segment sales decreased by $4.4 million or 2.4% due to lower unit shipments amid soft market demand [34][35] - Specialty Vehicles segment adjusted EBITDA increased by $24 million or 74.3% year over year, driven by higher sales and manufacturing efficiencies [30][31] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of the quarter was $4.3 billion, reflecting strong demand for fire apparatus [31] - Recreational Vehicle segment backlog declined by 2% to $268 million, attributed to soft end market demand [37] - REV brand retail sales decreased by 10% year over year, compared to a 13% decline in the broader industry [35] Company Strategy and Development Direction - The company is focusing on operational excellence, investing in people and equipment, and product innovation to drive sustainable growth [10][23] - A strategic decision was made to exit the non-motorized travel trailer and truck camper product categories to concentrate on scalable operations with stronger competitive positioning [18][19] - The company is increasing capital expenditure plans to enhance throughput and efficiency across its operations [23][42] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff impacts and maintaining updated financial guidance for the year [13][42] - The company anticipates continued growth in the Specialty Vehicles segment, with mid-teens revenue growth expected for the second half of the fiscal year [33][42] - Management noted that demand for fire and ambulance products is returning to long-term trend levels, with expectations for normalized order levels in the back half of the year [64] Other Important Information - The company repurchased approximately 2.9 million shares for $88 million under its share repurchase authorization [22][41] - A non-cash loss of $30 million was recognized related to the Lance Camper assets held for sale, partially offset by a $16.6 million income tax benefit [36][43] - The company maintains ample liquidity with approximately $263.2 million available under its ABL revolving credit facility [41][44] Q&A Session Summary Question: What is the timeframe for tariff impacts on the backlog and output? - Management expects the RV tariff impact to primarily affect the back half of fiscal 2025, with some potential carryover into early 2026 [47][48] Question: What is the expected return on the $20 million investment in the Brandon facility? - Management indicated that the investment aims to reduce lead times and increase throughput, but specific return metrics were not disclosed [49][50] Question: How does the sale of Lance impact long-term EBITDA goals? - Management clarified that Lance represents less than 10% of total sales for recreation, thus having no material impact on long-term EBITDA targets [51][52] Question: Will dealer assistance continue to increase in the second half? - Management expects a softer second half for recreation sales, influenced by tariffs and consumer confidence risks, but did not specify on dealer assistance trends [57][58] Question: What is the demand outlook for the S-one 80 program? - Demand for the S-one 80 program remains strong, with orders increasing across various brands [62][63] Question: What is the current state of wholesale versus retail demand in recreational vehicles? - Retail shipments showed early signs of improvement, while dealer inventories are healthier, which should drive better wholesale orders [70][72]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $629.1 million, an increase of $45.1 million or 7.7% compared to Q2 2024, excluding the impact of the divested E and C transit bus business [24][25] - Consolidated adjusted EBITDA was $58.9 million, up from $37.5 million in Q2 2024, representing a 63.6% year-over-year increase when excluding the impact of the divested bus business [25][27] - The company repurchased approximately 2.9 million shares for $88 million during the quarter under a $250 million share repurchase authorization [20][39] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased by $16.5 million to $453.9 million, with a 12.2% increase when excluding the divested transit bus business [27][28] - Specialty Vehicles adjusted EBITDA increased by $24 million or 74.3% year-over-year, driven by higher unit production and manufacturing efficiencies [28][29] - Recreational Vehicle segment sales decreased by $4.4 million or 2.4% due to lower unit shipments amid soft market demand, but maintained a 6.2% adjusted EBITDA margin [32][33] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog was $4.3 billion, reflecting strong demand for fire apparatus and a book-to-bill ratio of 1.1 in Q2 [29] - Recreational Vehicle segment backlog declined by 2% to $268 million, attributed to soft end market demand and dealer caution [35] - REV brand retail sales decreased by 10% year-over-year, compared to a 13% decline in the broader industry [33] Company Strategy and Development Direction - The company is focusing on operational excellence, investing in people and equipment, and product innovation to drive sustainable growth [8][21] - A strategic decision was made to exit the non-motorized travel trailer and truck camper product categories to concentrate on scalable operations with stronger competitive positioning [15][16] - The company plans to increase capital expenditures to enhance throughput and efficiency across its operations [21][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage tariff impacts and maintain updated financial guidance for the year [11][40] - The company anticipates continued growth in the Specialty Vehicles segment, with mid-teens revenue growth expected for the second half of the fiscal year [30][40] - Management noted that the demand for fire and ambulance products is returning to long-term trend levels, with expectations for normalized demand in the back half of the year [61] Other Important Information - The company celebrated the 50th anniversary of its ambulance group, highlighting its commitment to innovation and quality [12][13] - The company has maintained a strong cash flow profile, generating $117 million in cash from operating activities during the quarter [38][42] - The company updated its full-year fiscal 2025 guidance, raising consolidated top-line expectations to a range of $2.35 billion to $2.45 billion [40][41] Q&A Session Summary Question: What is the timeframe for tariff impacts to wash through the backlog and output? - Management expects the RV tariff impact to primarily affect the back half of fiscal 2025, with some potential carryover into early 2026 [44][46] Question: What is the expected return on the $20 million investment in the Brandon facility? - Management indicated that the investment aims to reduce lead times and increase production, but specific return metrics were not disclosed [47][48] Question: How does the sale of Lance impact long-term EBITDA goals? - Management clarified that Lance represents less than 10% of total sales for recreation, thus having no material impact on the 2027 targets [49] Question: Will dealer assistance continue to increase in the second half? - Management expects a softer second half due to consumer confidence risks and the impact of tariffs, but dealer inventory is healthier overall [54][56] Question: What is the demand outlook for the S-one 80 program? - Demand for the S-one 80 program remains strong, with orders increasing across various brands [58][59] Question: What is the current state of wholesale versus retail demand in recreational vehicles? - Retail shipments showed a sequential increase for the first time in 28 months, indicating positive signs, while wholesale orders are expected to improve due to healthier dealer inventory [68][70]

Group 1 - REV Group reported $629.1 million in revenue for the quarter ended April 2025, a year-over-year increase of 2% [1] - The EPS for the same period was $0.70, compared to $0.39 a year ago, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $596.64 million by 5.44%, and the EPS surpassed the consensus estimate of $0.59 by 18.64% [1] Group 2 - Key metrics indicate that net sales for Recreation Vehicles were $175.30 million, slightly below the estimated $164.12 million, reflecting a year-over-year decrease of 2.5% [4] - Specialty Vehicles net sales were reported at $453.90 million, exceeding the estimate of $432.66 million, with a year-over-year increase of 3.8% [4] - Adjusted EBITDA for Recreation Vehicles was $10.90 million, above the average estimate of $10.15 million, while Specialty Vehicles reported $56.30 million, surpassing the estimate of $49.31 million [4] Group 3 - Over the past month, REV Group's shares returned +4.6%, compared to the Zacks S&P 500 composite's +5.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - REV Group reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and up from $0.39 per share a year ago, representing an earnings surprise of 18.64% [1] - The company posted revenues of $629.1 million for the quarter, surpassing the Zacks Consensus Estimate by 5.44%, compared to $616.9 million in the same quarter last year [2] - Over the last four quarters, REV Group has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Group 2: Stock Performance and Outlook - REV Group shares have increased approximately 16.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.5% [3] - The future performance of REV Group's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $599.64 million, and for the current fiscal year, it is $2.37 on revenues of $2.36 billion [7] Group 3: Industry Context - The Transportation - Services industry, to which REV Group belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact REV Group's stock performance [5]

Financial Performance - Consolidated net sales for the three months ended April 30, 2025, increased by $12.2 million, or 2.0%, compared to the prior year quarter, while net sales for the six months decreased by $48.7 million, or 4.0%[99][100]. - Gross profit for the three months ended April 30, 2025, increased by $18.4 million, or 23.8%, compared to the prior year quarter, with a gross margin of 15.2%, while for the six months, gross profit increased by $25.3 million, or 18.0%[101][102]. - The company reported a net income of $19.0 million for the three months ended April 30, 2025, compared to $15.2 million in the prior year quarter, and a net income of $37.2 million for the six months compared to $197.9 million in the prior year[97]. - Adjusted EBITDA for the three months ended April 30, 2025, was $58.9 million, compared to $37.5 million in the prior year quarter, and for the six months, it was $95.7 million compared to $68.0 million[97]. - Consolidated net income increased by $3.8 million to $19.0 million for the three months ended April 30, 2025, but decreased by $160.7 million to $37.2 million for the six months ended April 30, 2025 compared to the prior year[112][113]. - Consolidated Adjusted EBITDA increased by $21.4 million, or 40.7%, to $58.9 million for the three months ended April 30, 2025, and by $27.7 million, or 68.0%, for the six months ended April 30, 2025[114][115]. - Adjusted Net Income increased by $14.5 million, or 69.4%, to $35.4 million for the three months ended April 30, 2025, and by $20.7 million, or 58.1%, for the six months ended April 30, 2025[116][117]. Segment Performance - The Specialty Vehicles segment saw increased shipments of fire apparatus contributing to higher net sales, while the Recreational Vehicles segment experienced lower unit shipments[99][100]. - The gross profit margin for the Specialty Vehicles segment improved, while the Recreational Vehicles segment faced challenges with lower gross margins[101][102]. - Specialty Vehicles segment net sales increased by $16.5 million, or 3.8%, to $453.9 million for the three months ended April 30, 2025, while decreasing by $30.5 million, or 3.6%, to $824.1 million for the six months ended April 30, 2025[119][120]. - Recreational Vehicles segment net sales decreased by $4.4 million, or 2.4%, to $175.3 million for the three months ended April 30, 2025, and by $18.8 million, or 5.4%, to $330.3 million for the six months ended April 30, 2025[123][124]. - Specialty Vehicles segment Adjusted EBITDA increased by $22.5 million, or 66.6%, to $56.3 million for the three months ended April 30, 2025, and by $31.5 million, or 52.5%, for the six months ended April 30, 2025[121][122]. Costs and Expenses - Selling, general and administrative (SG&A) costs decreased by $4.7 million, or 9.3%, for the three months ended April 30, 2025, and by $18.9 million, or 17.7%, for the six months[103][104]. - Consolidated loss on assets held for sale was $30.0 million for both the three and six months ended April 30, 2025, resulting from the strategic decision to exit the non-motorized recreational vehicle manufacturing business[109]. Cash Flow and Financing - Net cash provided by operating activities for the six months ended April 30, 2025 was $103.9 million, a significant improvement from a net cash used of $29.6 million in the same period of 2024[132]. - Net cash used in investing activities for the six months ended April 30, 2025 was $15.9 million, compared to a net cash provided of $301.9 million in 2024, primarily due to capital expenditures[133]. - Net cash used in financing activities for the six months ended April 30, 2025 was $83.8 million, down from $255.4 million in 2024, with stock repurchases totaling $107.6 million[134]. - The company repurchased 3,456,979 shares at a cost of $107.6 million during the six months ended April 30, 2025, at an average price of approximately $31.10 per share[137]. - As of April 30, 2025, the company's outstanding debt under the Amended 2021 ABL Facility was $130.0 million, with availability of $263.2 million[139]. Strategic Decisions and Outlook - The company discontinued manufacturing operations at ENC and sold Collins in the first quarter of fiscal year 2024, impacting the Bus Manufacturing Businesses[96]. - The company is actively evaluating acquisition opportunities to expand its business, which has historically been a significant growth driver[95]. - The first fiscal quarter is typically the slowest sales volume quarter due to seasonal factors, impacting overall performance[94]. - Consolidated gain on sale of business was $1.5 million for the three months ended April 30, 2024, and $259.0 million for the six months ended April 30, 2024, primarily due to the sale of the Collins and Fire RTC businesses[107][108]. - Consolidated income tax benefit was $5.7 million for the three months ended April 30, 2025, compared to an expense of $2.7 million for the same period in 2024, reflecting a significant change in tax position[110][111]. Risk and Financial Condition - The company has not created any off-balance sheet arrangements that could materially affect its financial condition[147]. - There have been no material changes in the company's exposure to interest rate risk, foreign exchange risk, and commodity price risk[150].

FISCAL SECOND QUARTER 2025 RESULTS JUNE 4, 2025 CAUTIONARY STATEMENT & NON-GAAP MEASURES Disclaimers Note Regarding Non-GAAP Measures REV Group reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management believes that the evaluation of REV Group's ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and Return on Invested Capital, which are non-GAAP financial measures. Adjusted EB ...

Financial Performance - Consolidated net sales for Q2 2025 were $629.1 million, a 2.0% increase from $616.9 million in Q2 2024, with a 7.7% increase excluding the impact of Bus Manufacturing Businesses[2][5] - Net income for Q2 2025 was $19.0 million, or $0.38 per diluted share, compared to $15.2 million, or $0.28 per diluted share, in Q2 2024[3][5] - Adjusted EBITDA for Q2 2025 was $58.9 million, a 56.8% increase from $37.5 million in Q2 2024, with a 63.6% increase excluding the impact of Bus Manufacturing Businesses[3][5] - Adjusted Net Income for Q2 2025 was $35.4 million, compared to $20.9 million in Q2 2024[5][3] - Operating income for the three months ended April 30, 2025, was $49.7 million, significantly up from $22.9 million in the prior year, marking a 117.0% increase[26] - The company reported a net income of $19.0 million for the three months ended April 30, 2025, compared to $15.2 million in the same period of 2024, representing a 25.0% increase[26] - Adjusted EBITDA for the three months ended April 30, 2025, was $58.9 million, up from $37.5 million in the same period of 2024, indicating a 56.5% increase[29] - Adjusted EBITDA for the six months ended April 30, 2025, was $95.7 million, compared to $68.0 million for the same period in 2024, reflecting a 40.8% increase[33] Segment Performance - Specialty Vehicles segment net sales were $453.9 million in Q2 2025, a 3.8% increase from $437.4 million in Q2 2024, with a 12.2% increase excluding Bus Manufacturing Businesses[7][5] - Recreational Vehicles segment net sales decreased by $4.4 million, or 2.4%, to $175.3 million in Q2 2025 compared to Q2 2024[9][5] - Specialty Vehicles segment backlog increased to $4,282.0 million at the end of Q2 2025, up from $4,064.4 million at the end of Q2 2024[7][5] Guidance and Projections - Updated full-year fiscal 2025 guidance includes net sales of $2.35 to $2.45 billion and Adjusted EBITDA of $200.0 to $220.0 million[5][14] - For fiscal year 2025, the company projects adjusted EBITDA to be between $200.0 million and $220.0 million[37] - The projected net income for fiscal year 2025 is expected to range from $87.8 million to $106.5 million[39] - Free cash flow for fiscal year 2025 is anticipated to be between $100.0 million and $120.0 million[41] Shareholder Actions - The company repurchased approximately 2.9 million common shares for $88.4 million during the quarter[12][5] - The company declared dividends of $0.06 per common share for the three months ended April 30, 2025, compared to $0.05 in the same period of 2024, a 20.0% increase[26] Cash and Debt Management - Cash and cash equivalents at the end of the period were $28.8 million, up from $24.6 million at the beginning of the period, showing a 9.0% increase[27] - Total current liabilities increased to $500.4 million as of April 30, 2025, compared to $469.3 million at the end of October 2024, a rise of 6.4%[26] - Long-term debt increased to $130.0 million as of April 30, 2025, compared to $85.0 million at the end of October 2024, reflecting a 52.9% increase[26] Expenses and Losses - The company incurred stock-based compensation expenses of $3.1 million for the three months ended April 30, 2025, compared to $3.0 million for the same period in 2024[35] - Interest expense for the six months ended April 30, 2025, was $12.4 million, compared to $13.4 million for the same period in 2024, indicating a decrease of 7.5%[33] - The company reported a loss on assets held for sale of $30.0 million for both the three and six months ended April 30, 2025[35] Capital Expenditures - Capital expenditures in Q2 2025 were $11.4 million, an increase from $5.9 million in Q2 2024[12][5]

Core Insights - REV Group (REVG) is expected to report quarterly earnings of $0.59 per share, reflecting a 51.3% increase year over year, while revenues are forecasted at $596.64 million, indicating a 3.3% decrease compared to the previous year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, suggesting stability in analysts' forecasts [1][2] - The stock has seen an 11.4% increase in the past month, outperforming the Zacks S&P 500 composite, which rose by 6.4% [5] Revenue Estimates - Analysts project 'Net Sales- Recreation Vehicles' to reach $164.12 million, a decrease of 8.7% year over year [4] - 'Net Sales- Specialty Vehicles' is expected to be $432.66 million, reflecting a decline of 1.1% year over year [4] EBITDA Estimates - The estimated 'Adjusted EBITDA- Recreation Vehicles' is projected at $10.15 million, down from $12.10 million reported in the same quarter last year [4] - For 'Adjusted EBITDA- Specialty Vehicles', analysts estimate $49.31 million, an increase from $33.80 million in the previous year [5]

Core Insights - REV Exploration Corp. is expanding its focus on Natural Hydrogen in Western Canada, particularly in Alberta, positioning itself as a first-mover in this sector [1][3] Industry Overview - Under Premier Danielle Smith's leadership, Alberta is developing a robust hydrogen sector, with the potential to become a "next trillion dollar industry" [2] - The Alberta Hydrogen Roadmap aims for over $30 billion in capital investments by 2030 to establish the province as a global supplier of clean hydrogen [6] Company Developments - REV Exploration has secured a significant land package with permits for Natural Hydrogen exploration in Saskatchewan, while also targeting opportunities in Alberta due to its advanced hydrogen economy [3][4] - The company is also advancing its gold properties in Northern Quebec's Chibougamau Gold Camp, indicating a diversified exploration strategy [6] Natural Hydrogen Potential - Alberta is already a leader in blue hydrogen production, and the exploration of naturally occurring hydrogen presents a complementary opportunity [4] - The geological features of Alberta, including a Precambrian basement rich in iron and uranium-bearing rocks, are conducive to Natural Hydrogen generation [5]