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FISCAL FOURTH QUARTER 2025 RESULTS DECEMBER 10, 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, Adjusted Free Cash Flow, and Return on Invested Capital, which are non-GAAP f ...

Core Insights - REV Group reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and showing an increase from $0.51 per share a year ago, representing an earnings surprise of +6.41% [1] - The company achieved revenues of $664.4 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.67%, and up from $597.9 million year-over-year [2] - REV Group's stock has increased approximately 74.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.3% [3] Earnings Outlook - The company's earnings outlook is crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for REV Group was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Future Estimates - Current consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $582.81 million, while for the current fiscal year, the estimate is $3.52 on revenues of $2.64 billion [7] Industry Context - The Automotive - Domestic industry, to which REV Group belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Performance and Strategy - The company plans to drive margin expansion through operational initiatives aimed at increasing net income, cash flow, Adjusted Net Income, and Adjusted EBITDA over the long term[59]. - R&D costs totaled $5.8 million, $3.3 million, and $4.7 million for fiscal years 2025, 2024, and 2023, respectively[77]. - The company purchased approximately $1.4 billion of chassis, direct materials, and other components from outside suppliers in fiscal year 2025, with vehicle chassis representing about 28% of total purchases[78]. - As of October 31, 2025, the company had $40.0 million of principal outstanding under its Amended 2021 ABL Facility at an average rate of 5.6% per annum[298]. - A 100-basis point increase in floating interest rates would increase interest expense by $0.4 million annually, while a decrease would reduce it by the same amount[298]. - The company purchases commodities like aluminum and raw steel, and has implemented general price increases to offset commodity price increases[299]. Operations and Manufacturing - The company operates 16 manufacturing facilities across the U.S., totaling approximately 3.9 million square feet of manufacturing, service, and warehouse space[73]. - The company employs approximately 5,500 employees, with about 75% in production roles[92]. Distribution and Market Expansion - The company aims to enhance its distribution network by selectively adding dealers in new territories and expanding direct sales capabilities in targeted markets[61]. - The company seeks value-enhancing acquisitions to broaden product offerings and geographic reach while achieving targeted financial returns[63]. - The company believes there is international demand for its products and may seek to expand distribution globally[61]. - The company’s distribution network consists of leading dealers that have sold its products for over a decade, fostering strong customer loyalty[65]. Research and Development - The company’s engineering and R&D capabilities are essential for remaining competitive, focusing on new product development and enhancements[75]. - The company’s markets are highly competitive, with key competitors including Thor Industries, Winnebago Industries, and Pierce Manufacturing[88]. Employee Relations and Development - The company conducts annual talent reviews to identify potential successors for key leadership roles and assess development needs[92]. - Employee engagement is driven through structured roundtable discussions, with outcomes shared with senior leadership[92]. - The company has no employees under collective bargaining agreements, indicating generally favorable employee relations[92]. - The Health and Safety Management System is guided by an executive committee to ensure compliance and best practices[92]. - The company provides technical, professional, and leadership training through various learning formats, including partnerships with local educational institutions[92].

Financial Performance - Consolidated net sales for Q4 2025 were $664.4 million, a 13.0% increase from $597.9 million in Q4 2024, excluding the impact of Bus Manufacturing Businesses[2] - Full year 2025 consolidated net sales reached $2,463.5 million, an 11.1% increase from $2,380.2 million in 2024, excluding the impact of Bus Manufacturing Businesses[3] - Q4 2025 net income was $28.9 million, or $0.59 per diluted share, down from $41.7 million, or $0.80 per diluted share in Q4 2024[4] - Net income for the twelve months ended October 31, 2025, was $95.2 million, compared to $257.6 million in the prior year, reflecting a decrease of 63.0%[29] - For the three months ended October 31, 2025, the total net income was $28.9 million, a decrease from $41.7 million in the same period of 2024, representing a decline of 30.0%[33] - For the twelve months ended October 31, 2025, the total net income was $95.2 million, down from $257.6 million in 2024, indicating a decrease of 63.0%[35] Segment Performance - Specialty Vehicles segment net sales were $507.4 million in Q4 2025, a 15.3% increase from $439.9 million in Q4 2024[10] - Recreational Vehicles segment net sales were $157.2 million in Q4 2025, a slight decrease of 0.6% from $158.1 million in Q4 2024[12] - Specialty Vehicles segment net sales increased to $507.4 million for the three months ended October 31, 2025, compared to $439.9 million in the prior year, a growth of 15.4%[31] EBITDA and Cash Flow - Adjusted EBITDA for Q4 2025 was $69.7 million, a 39.7% increase from $49.6 million in Q4 2024, excluding the impact of Bus Manufacturing Businesses[5] - Adjusted EBITDA for the three months ended October 31, 2025, was $69.7 million, up from $49.6 million in the same period last year, marking a 40.0% increase[31] - The company reported a free cash flow of $190.0 million for the twelve months ended October 31, 2025, after capital expenditures of $51.1 million[38] Assets and Liabilities - Total assets decreased to $1,200.0 million as of October 31, 2025, down from $1,213.0 million in the previous year[25] - Total current liabilities increased to $515.3 million, up from $469.3 million in the prior year, reflecting an increase of 9.0%[25] Capital Expenditures and Dividends - Capital expenditures in Q4 2025 were $23.2 million, significantly higher than $5.3 million in Q4 2024[14] - The board declared a quarterly cash dividend of $0.06 per share, equating to an annualized rate of $0.24 per share[15] Strategic Plans - The company plans to close a strategic merger with Terex Corporation in the first half of calendar 2026[8] Other Financial Metrics - Gross profit for the same period rose to $102.6 million, representing a 30.2% increase compared to $78.8 million in the prior year[27] - Operating income for the three months ended October 31, 2025, was $47.5 million, a 37.0% increase from $34.6 million in the previous year[27] - The total EBITDA for the twelve months ended October 31, 2025, was $168.6 million, compared to $394.3 million in 2024, a decline of 57.3%[35] - The company incurred transaction expenses of $7.3 million for the twelve months ended October 31, 2025, slightly down from $7.4 million in 2024[37] - The net loss on sale of business and assets for the twelve months ended October 31, 2025, was $36.7 million[35] - The company reported stock-based compensation expenses of $12.6 million for the twelve months ended October 31, 2025, compared to $12.7 million in 2024[37] - Depreciation and amortization for the twelve months ended October 31, 2025, totaled $26.0 million, up from $25.4 million in 2024[35] - The provision for income taxes for the twelve months ended October 31, 2025, was $22.3 million, compared to $82.8 million in 2024, a decrease of 73.0%[35] Backlog - Period-end backlog for Specialty Vehicles was $4,402.3 million, a 5.3% increase from $4,179.8 million in the previous year[31]

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Core Insights - REV Group, Inc. is a significant player in the specialty vehicle manufacturing industry, producing vehicles for emergency response, commercial, and recreational markets, facing competition from Thor Industries and Winnebago Industries [1] Anticipated Earnings - On December 10, 2025, REV Group is expected to release quarterly earnings with an anticipated earnings per share (EPS) of $0.78 and revenue of approximately $647 million, to be discussed in a live webcast [2][6] Financial Metrics - The company has a price-to-earnings (P/E) ratio of 25.05, indicating a moderate valuation compared to industry standards, and a price-to-sales ratio of 1.14, showing that investors pay $1.14 for every dollar of sales [3][6] - The enterprise value to sales ratio is 1.17, reflecting the company's total valuation relative to its sales, while the enterprise value to operating cash flow ratio is 12.00, indicating how many times the operating cash flow can cover the enterprise value [4] Financial Health - REV Group exhibits stable financial health with a debt-to-equity ratio of 0.28, indicating a relatively low level of debt compared to equity, and a current ratio of 1.63, suggesting good liquidity to cover short-term liabilities [5][6] - The earnings yield stands at 3.99%, representing the return on investment for shareholders and providing a measure of profitability [5]

BROOKFIELD, Wis.--(BUSINESS WIRE)--REV Group, Inc. (NYSE: REVG) announced that it will release its fourth-quarter fiscal 2025 financial results on Wednesday, December 10, 2025, prior to the market opening. The results will be discussed during a live webcast later that morning, beginning at 10:00 a.m. ET. Access to the live webcast and presentation materials will be available directly on the REV Group website, www.revgroup.com, under the "Investors" section and subheading "Events.†Slides for th. ...

Core Points - REV Exploration Corp. has entered into a mineral property purchase agreement to acquire a 100% interest in certain mineral claims in Ontario and Quebec [1][2] - The company will issue 500,000 common shares as consideration for the property, which will be subject to a four-month hold period [2][3] - The property is subject to a 1.5% net smelter returns royalty, calculated on the net proceeds from mineral sales after deductions [3] Agreement Details - The closing of the agreement is contingent upon customary conditions, including regulatory approvals and acceptance by the TSX Venture Exchange [3] - The company has also granted 600,000 incentive stock options and 150,000 restricted share units to directors and consultants [4][5] - Each option is exercisable at a price of C$0.40 for five years, while RSUs will vest in three equal tranches over three years [5][6] Company Overview - REV Exploration Corp. is focused on mineral exploration, owning gold and battery metal properties in Quebec, and has exposure to the Natural Hydrogen sector in Alberta and Saskatchewan [7] - The company has acquired PNG leases along the Alberta-Montana border, including the drill-ready Aden Dome, and holds a significant equity position in MAX Power Mining Corp. [7]

Core Insights - REV Group (REVG) has shown strong year-to-date performance, with a return of approximately 65%, significantly outperforming the average return of 6.1% in the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for REVG's full-year earnings has increased by 4.9% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - REV Group holds a Zacks Rank of 2 (Buy), suggesting it has favorable characteristics for outperforming the market in the near term [3] Company Performance - REV Group is part of the Automotive - Domestic industry, which consists of 14 companies and currently ranks 145 in the Zacks Industry Rank [6] - The Automotive - Domestic industry has an average year-to-date return of 7.8%, indicating that REV Group is performing better than its industry peers [6] Comparison with Peers - Standard Motor Products (SMP), another stock in the Auto-Tires-Trucks sector, has returned 23.5% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - SMP belongs to the Automotive - Replacement Parts industry, which has underperformed with a return of -12.6% this year, ranking 203 in the Zacks Industry Rank [6]