Financial Data and Key Metrics Changes - First quarter sales were $525 million, a decrease of $61 million from the prior year, primarily due to the exit from the bus manufacturing business [23][24] - Adjusted EBITDA for the first quarter reached a record $36.8 million, an increase of $6.3 million, or 79%, when excluding the impact of divested bus businesses [26][30] - The company reported a strong backlog of $4.5 billion, providing 2 to 2.5 years of demand visibility within the specialty vehicles segment [12][16] Business Line Data and Key Metrics Changes - Specialty vehicle segment sales were $370.2 million, a decrease of $47 million compared to the prior year, but increased by $29.6 million when excluding the impact of divested bus businesses [28][34] - Adjusted EBITDA for the specialty vehicle segment was $35.2 million, a record for the first quarter, increasing by $9 million versus the prior year [30][32] - Recreational vehicle segment sales decreased by $14.4 million, or 8.5%, primarily due to lower unit volumes related to soft market demand [36][40] Market Data and Key Metrics Changes - Approximately 5% of net sales are outside of the United States, indicating a strong domestic focus [16] - The recreational vehicle segment experienced a decline in backlog of $265 million, down 30% versus the prior year, attributed to soft market demand and dealer destocking [39] Company Strategy and Development Direction - The company aims to provide attractive returns to shareholders through organic growth, share repurchases, dividends, and selective acquisitions [9][20] - A disciplined approach to capital allocation is emphasized, with ongoing share repurchases totaling $19.2 million in the first quarter [20][21] - The company is focused on operational improvements and enhanced execution to achieve significant earnings growth [7][10] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed fiscal 2025 guidance, expecting high single to low double-digit revenue growth in the specialty vehicle segment [45][47] - The company remains confident in its ability to navigate the broader macroeconomic environment, despite potential tariff impacts [16][56] - Management highlighted the importance of maintaining a strong supply chain and multi-sourcing strategy to mitigate risks associated with tariffs [14][70] Other Important Information - The company has implemented a multi-sourcing strategy for key components to reduce the risk of sole source exposures [14][15] - The first quarter cash from operating activities showed an outflow of $13.1 million, influenced by management incentive payments [42] Q&A Session Summary Question: Clarification on tariff impacts - Management explained that direct exposure to tariffs is limited, with only 2% of costs related to imports from Canada and Mexico, and emphasized the strength of their supply chain [50][52] Question: RV group performance and outlook - Management indicated that while retail sales improved, they want to see sustained improvement in wholesale sales before increasing guidance for the RV segment [56][58] Question: Pricing strategy and inflation - Management confirmed that they can pass through inflationary cost increases on certain products, but fixed contracts limit their ability to adjust pricing [60][62] Question: Backlog and new orders - Management acknowledged the importance of continuing to take new orders while assessing inflation risks and pricing strategies [68][70] Question: Market share and demand trends - Management noted that industry demand for fire trucks remains above long-term trends, but they do not focus on market share metrics [90][92]

Core Insights - REV Group reported revenue of $525.1 million for the quarter ended January 2025, a decrease of 10.4% year-over-year, but exceeded the Zacks Consensus Estimate of $495.5 million by 5.97% [1] - The company achieved an EPS of $0.40, up from $0.25 in the same quarter last year, resulting in an EPS surprise of 37.93% against the consensus estimate of $0.29 [1] Revenue Performance - Net Sales for Recreation Vehicles were $155 million, surpassing the three-analyst average estimate of $146.83 million, but reflecting a year-over-year decline of 8.5% [4] - Net Sales for Specialty Vehicles reached $370.20 million, exceeding the average estimate of $349.11 million [4] - Net Sales for Corporate & Other reported at -$0.10 million, better than the average estimate of -$0.44 million, with a significant year-over-year change of -83.3% [4] EBITDA Analysis - Adjusted EBITDA for Recreation Vehicles was $9.20 million, above the average estimate of $8.02 million [4] - Adjusted EBITDA for Specialty Vehicles stood at $35.20 million, compared to the average estimate of $29.43 million [4] - Adjusted EBITDA for Corporate & Other was -$7.60 million, slightly worse than the average estimate of -$7.36 million [4] Stock Performance - REV Group's shares have declined by 19.3% over the past month, while the Zacks S&P 500 composite decreased by 4.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - REV Group reported quarterly earnings of $0.40 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.25 per share a year ago, representing an earnings surprise of 37.93% [1] - The company posted revenues of $525.1 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 5.97%, although this is a decrease from year-ago revenues of $586 million [2] - REV Group has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has underperformed the market, losing about 14.3% since the beginning of the year compared to the S&P 500's decline of 1.8% [3] - The current consensus EPS estimate for the coming quarter is $0.58 on revenues of $594.71 million, and for the current fiscal year, it is $2.32 on revenues of $2.36 billion [7] - The Zacks Industry Rank for Transportation - Services is currently in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Consolidated net sales decreased by $60.9 million, or 10.4%, to $525.1 million for the three months ended January 31, 2025, compared to $586.0 million in the prior year quarter[92][93]. - Gross profit increased by $6.9 million, or 11.0%, to $69.8 million, with a gross margin of 13.3% compared to 10.7% in the prior year quarter[94]. - Net income decreased by $164.5 million, or 90.0%, to $18.2 million for the three months ended January 31, 2025, compared to $182.7 million in the prior year quarter[100]. - Adjusted EBITDA increased by $6.3 million, or 20.7%, to $36.8 million, with a significant increase of 78.6% when excluding the impact of the Bus Manufacturing Businesses[101]. - Adjusted Net Income increased by $6.2 million, or 42.2%, to $20.9 million, driven by higher contributions from the Specialty Vehicles segment[102]. Segment Performance - The Specialty Vehicles segment saw increased shipments of fire apparatus and a favorable mix of ambulance units, contributing to higher net sales[93]. - Specialty Vehicles segment net sales decreased by $47.0 million, or 11.3%, to $370.2 million for the three months ended January 31, 2025, compared to $417.2 million in the prior year quarter[104]. - Adjusted EBITDA for the Specialty Vehicles segment increased by $9.0 million, or 34.4%, to $35.2 million for the three months ended January 31, 2025, compared to $26.2 million in the prior year quarter[105]. - The Recreational Vehicles segment experienced a decrease in unit shipments, impacting overall sales negatively[93]. - Recreational Vehicles segment net sales decreased by $14.4 million, or 8.5%, to $155.0 million for the three months ended January 31, 2025, compared to $169.4 million in the prior year quarter[106]. Operational Changes - The company announced the discontinuation of manufacturing operations at ENC and sold Collins and ENC, which were part of the Bus Manufacturing Businesses[91]. - The company incurred transaction expenses of $5.0 million in the three months ended January 31, 2024, primarily related to the sale of Collins[128]. - Restructuring related charges for the three months ended January 31, 2024, included write-offs of inventory associated with next-generation propulsion technology[128]. - The company reported impairment charges of $12.6 million primarily associated with the discontinuation of manufacturing operations at the ENC facility[128]. Cash Flow and Financing - Net cash used in operating activities was $13.1 million for the three months ended January 31, 2025, an improvement from $69.7 million in the prior year[112]. - Net cash provided by financing activities was $24.9 million for the three months ended January 31, 2025, primarily from net proceeds of $55.0 million from the revolving credit facility[115]. - The company repurchased 579,165 shares at a cost of $19.2 million during the three months ended January 31, 2025, at an average price of approximately $33.09 per share[118]. - The company expects to pay a quarterly cash dividend of $0.06 per share, with cash dividends of $3.9 million paid during the first quarter of fiscal year 2025[116]. - As of January 31, 2025, the company's outstanding debt under the 2021 ABL Facility was $140.0 million, with availability of $262.9 million[121]. - The company amended the 2021 ABL Agreement to decrease the aggregate commitments for revolving loans and letters of credit from $550.0 million to $450.0 million[122]. Tax and Accounting - The provision for income taxes decreased significantly to $3.8 million, or 17.3% of pre-tax income, compared to $61.5 million, or 25.2% of pre-tax income, in the prior year quarter[99]. - There were no off-balance sheet arrangements or special-purpose entities created for raising capital or incurring debt[129]. - The company has not experienced any material changes in exposure to interest rate risk, foreign exchange risk, or commodity price risk[132]. - The preparation of financial statements requires estimates and assumptions that affect reported amounts, as detailed in the Annual Report on Form 10-K for the fiscal year ended October 31, 2024[130]. - Recent accounting pronouncements and their impacts on financial statements are discussed in Note 1 of the Notes to Condensed Unaudited Consolidated Financial Statements[131].

Financial Performance - First quarter 2025 consolidated net sales were $525.1 million, a decrease of 10.4% from $586.0 million in the first quarter 2024, with a 3.1% increase excluding the impact of Bus Manufacturing Businesses[2][6] - First quarter 2025 net income was $18.2 million, or $0.35 per diluted share, compared to $182.7 million, or $3.06 per diluted share, in the first quarter 2024, which included a $257.5 million gain on the sale of Collins[3][6] - Total net sales for the three months ended January 31, 2025, were $525.1 million, a decrease of 10.4% compared to $586.0 million in the same period of 2024[24] - Net income for the quarter was $18.2 million, a significant decrease from $182.7 million in the same quarter of the previous year[24] - The adjusted net income for the quarter was $20.9 million, compared to $14.7 million in the same period of 2024[31] Segment Performance - Specialty Vehicles segment net sales were $370.2 million, a decrease of 11.3% from $417.2 million in the first quarter 2024, but increased by 8.7% when excluding Bus Manufacturing Businesses[7][9] - Recreational Vehicles segment net sales were $155.0 million, a decrease of 8.5% from $169.4 million in the first quarter 2024, primarily due to decreased unit shipments[9][10] - Specialty Vehicles segment backlog at the end of the first quarter 2025 was $4,226.1 million, an increase of $446.2 million compared to the prior year quarter, excluding Bus Manufacturing Businesses[7][8] - The period-end backlog increased to $4,490.6 million, up from $4,240.8 million year-over-year, indicating strong demand[27] Profitability Metrics - Adjusted EBITDA for the first quarter 2025 was $36.8 million, an increase of 20.9% from $30.5 million in the first quarter 2024, with a 78.6% increase when excluding the impact of Bus Manufacturing Businesses[3][6] - Adjusted EBITDA for the three months ended January 31, 2025, was $36.8 million, an increase of 20.9% from $30.5 million in the same period of 2024[27] - Gross profit increased to $69.8 million, representing a gross margin of 13.3%, up from $62.9 million and a margin of 10.7% year-over-year[24] - Operating income for the quarter was $28.0 million, compared to an operating loss of $6.5 million in the prior year[24] Capital Management - The company repurchased approximately 0.6 million common shares for $19.2 million during the quarter, reflecting a strategic use of capital[4][12] - The company reaffirmed its Fiscal 2025 guidance, indicating confidence in operational momentum and growth prospects[4][6] - As of January 31, 2025, net debt totaled $108.4 million, with $31.6 million cash on hand, and $262.9 million available under its ABL revolving credit facility[11][12] - Long-term debt increased to $140.0 million from $85.0 million year-over-year, reflecting increased borrowing[25] Dividends - A quarterly cash dividend of $0.06 per share was declared, equating to an annualized rate of $0.24 per share[14] - The company declared dividends of $0.06 per common share, down from $3.05 per share in the prior year[24]

Core Insights - REV Exploration Corp. has appointed Mr. Jeremy Polmear to its Board of Directors, bringing extensive financial management experience across various industries [1][2] - The company is focusing on the natural hydrogen sector in Saskatchewan, with Mr. Polmear expected to contribute significantly to its strategic direction and financial success [2][6] Company Overview - REV Exploration is a mineral exploration company with a portfolio of gold and battery metal properties located in Quebec, specifically in the Sept-Iles region (nickel, niobium, and tantalum) and the Chapais-Chibougamau area (gold) [6] - The company owns 100% of its properties in Quebec and is actively pursuing exploration opportunities in the natural hydrogen sector [6] Leadership and Expertise - Mr. Polmear has over a decade of experience in accounting and financial management, having held pivotal roles in various industries including construction, property development, technology, and junior mining [2][4] - As the current Chief Financial Officer for F4 Uranium, he has overseen complex financial operations and has been involved in nearly $50 million in public financings [3][4] - His skills include financial reporting, budgeting, forecasting, and improving operational efficiency, which are expected to drive profitability and long-term growth for REV [4][5]

Company Overview - REV Group (NYSE: REVG) is a leading manufacturer of RVs and specialty vehicles, playing a crucial role in emergency response, transportation, and recreation, impacting millions of people [1] Investment Philosophy - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential across various sectors, emphasizing long-term value and disciplined research [1]

Group 1 - REV Group, Inc. has successfully grown its specialty vehicles business despite challenges in the recreational vehicle markets, leading to strong and profitable earnings [1] - Investors have responded positively to the company's performance, resulting in an increase in stock prices [1]

Core Viewpoint - REV Exploration Corp. has appointed Shayne Neigum as Chief Operating Officer to enhance its focus on natural hydrogen opportunities in Saskatchewan, aiming to drive shareholder value through exploration and potential commercialization [1][6]. Company Overview - REV Exploration Corp. is a mineral exploration company with a portfolio of gold and battery metal properties in Quebec, including regions rich in nickel, niobium, tantalum, and gold [7]. - The company is also actively pursuing exploration opportunities in the natural hydrogen sector in Saskatchewan, positioning itself in a rapidly growing market [1][7]. Leadership and Expertise - Shayne Neigum brings extensive experience in the resource sector, particularly in the Western Canada Sedimentary Basin, with skills in geological mapping, reserves analysis, and regulatory compliance [4][5]. - Neigum's leadership is expected to bridge technical insights with business strategy, enhancing operational efficiency and long-term value creation for the company [5]. Strategic Goals - The company aims to transition from exploration to discovery and commercialization in the natural hydrogen sector, leveraging Saskatchewan's geological advantages and government support [3][6]. - The interim CEO, Jordan Potts, expressed confidence that Neigum's leadership will expand opportunities for shareholders beyond the existing gold and battery metal portfolio [6].

Company Overview - REV Group (REVG) is currently a member of the Transportation sector, which includes 131 individual stocks and holds a Zacks Sector Rank of 16 [2] - REV Group has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [3] Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for REVG's full-year earnings has increased by 7.5%, reflecting improved analyst sentiment [4] - Since the beginning of the calendar year, REVG has returned approximately 11.1%, outperforming the average return of 2.8% for Transportation companies [4] Industry Comparison - REV Group is part of the Transportation - Services industry, which consists of 25 companies and currently ranks 155 in the Zacks Industry Rank; this industry has seen an average loss of 10.4% this year, indicating that REVG is performing better [6] - In contrast, Alaska Air Group (ALK), another stock in the Transportation sector, belongs to the Transportation - Airline industry, which has returned +47.4% this year and ranks 42 [6] Investment Outlook - Both REV Group and Alaska Air Group are noted for their solid performance, suggesting that investors interested in Transportation stocks should monitor these companies closely [7]