Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Has REV Group (REVG) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.REV Group is a member of our Transportation group, which includes 125 different companies and currently sits at #16 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength ...

Group 1 - Corporacion America Airports S.A. (CAAP) is part of the Transportation sector, which includes 130 individual stocks and has a Zacks Sector Rank of 10 [2] - CAAP currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for CAAP's full-year earnings has increased by 41.6%, reflecting improved analyst sentiment [4] Group 2 - Year-to-date, CAAP has returned approximately 2%, outperforming the average loss of 1.5% in the Transportation sector [4] - CAAP belongs to the Transportation - Airline industry, which consists of 27 stocks and is ranked 43 in the Zacks Industry Rank; the industry has gained an average of 8.5% this year, indicating CAAP is slightly underperforming its industry [6] - Another stock in the Transportation sector, REV Group (REVG), has a year-to-date return of 4.6% and a Zacks Rank of 1 (Strong Buy) [5][7]

Core Points - REV Exploration Corp. has granted 125,000 stock options and 125,000 restricted share units (RSUs) to a director, with stock options priced at $0.275 and expiring on March 25, 2030 [1] - The RSUs will vest over time and can be converted into common shares or cash at the company's discretion [1] Company Overview - REV Exploration is a mineral exploration company focused on gold and battery metals, owning properties in Quebec, including nickel, niobium, tantalum, and gold [2] - The company is also exploring opportunities in the natural hydrogen sector in Saskatchewan [2]

Financial Data and Key Metrics Changes - The 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] - Adjusted EBITDA for the first quarter was a record $36.8 million, an increase of $6.3 million, or 79%, compared to the prior year quarter [26] - 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] 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, or 8.7%, when excluding the impact of divested bus businesses [28] - Recreational vehicle segment sales were $155 million, a decrease of $14.4 million, or 8.5%, primarily due to lower unit volumes related to soft market demand [36] - Specialty vehicles adjusted EBITDA margin was 9.5%, a record for the first quarter, improving by 470 basis points year-over-year [32] Market Data and Key Metrics Changes - Approximately 5% of net sales are outside of the United States, indicating a strong domestic focus [16] - The RV market remains challenged, but positive customer response at events like the Florida RV SuperShow indicates potential for future growth [19] Company Strategy and Development Direction - The company aims to provide attractive returns to shareholders through organic growth, share repurchases, dividends, and selective acquisitions [9] - A disciplined approach to capital allocation is emphasized, with a focus on maintaining flexibility for future investments [20] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving full-year guidance despite market challenges, citing strong first-quarter performance as a solid foundation [11] - The company is actively monitoring supply chain risks related to tariffs and has implemented a multi-sourcing strategy to mitigate potential impacts [14][15] Other Important Information - The company has resumed share repurchases, returning $19.2 million to shareholders in the first quarter [20] - The company declared a quarterly cash dividend of $0.06 per common share, payable on April 11 [44] Q&A Session Summary Question: Clarification on tariff impacts - Management clarified that direct exposure to tariffs is limited, with only 2% of direct material purchases coming from affected regions, and emphasized improved supply chain resilience [50][52] Question: RV group outlook - Management indicated that while retail sales have 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 retroactively [60][62] Question: Backlog and new orders - Management acknowledged the importance of maintaining order intake while being cautious about adding to backlog due to potential inflation risks [68][70] Question: Market share and demand - Management noted that while industry demand for fire trucks remains above long-term trends, they do not focus on market share metrics [90][92]

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]