Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $644.9 million, up from $579.4 million in Q3 2024, representing a 20.5% increase when excluding the impact of the exited E and C transit bus business [14] - Consolidated adjusted EBITDA increased to $64.1 million from $45.2 million in Q3 2024, a year-over-year increase of 66.1% when excluding the $6.6 million impact from the divested bus business [15][16] - Trade working capital decreased to $191.6 million from $248.2 million at the end of fiscal 2024, primarily due to lower inventory balances and increased customer advances [24] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales were $483.3 million, an increase of 11.8% compared to the prior year, with adjusted EBITDA of $64.6 million, up 71.4% year-over-year [17][18] - Fire unit shipments increased by 11% and ambulance unit shipments increased by 7% compared to the previous year, reflecting operational resilience and increased throughput [6][18] - Recreational Vehicle segment sales rose to $161.7 million, a 9.7% increase, but adjusted EBITDA decreased by 13.8% due to increased dealer assistance and tariff impacts [21][22] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog at the end of the quarter was $4.3 billion, with a decrease in the number of units in backlog by approximately 4% sequentially and 6% year-over-year [19][22] - Recreational Vehicle segment backlog declined by 7% year-over-year, reflecting soft end market demand and dealer caution [22] Company Strategy and Development Direction - The company is focused on reinvesting in its businesses to drive long-term growth, pursuing opportunistic share repurchases, and maintaining a sustainable dividend while evaluating M&A opportunities [13] - A significant investment of approximately $20 million is being made to expand the Spartan Emergency Response facility, increasing fire apparatus production capacity by 40% [8][9] - The company aims to improve operational efficiency and quality through targeted capital investments across its fire and ambulance groups [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage tariff impacts and maintain strong performance, raising the fiscal 2025 outlook based on year-to-date performance [13][27] - The company anticipates continued demand for fire apparatus and ambulance units, with expectations for low single-digit sequential revenue growth in the Specialty Vehicles segment for Q4 [20] - Management acknowledged the challenges in the Recreational Vehicle segment due to macroeconomic uncertainty but remains optimistic about the long-term outlook [21][23] Other Important Information - The company completed the sale of its Lance Camper business, streamlining its RV portfolio to focus on motorized RVs [11] - Year-to-date cash flow has strengthened the balance sheet, allowing for continued investments and enhancing financial flexibility [12] Q&A Session Summary Question: Were the record EBITDA margins in line with expectations? - Management confirmed that they are on track with their midterm targets and are pleased with the progression [31][32] Question: Will the first quarter of fiscal 2026 start slow due to tariffs? - Management expects a typical sequential decline in sales of 10-15% in the first quarter, with incrementals aligning with previous guidance [34] Question: How is pricing being managed in light of tariffs and inflation? - Management is actively reviewing pricing strategies to offset inflation costs but has not yet implemented price increases specifically due to tariffs [36][46] Question: Is the company seeing any impact from steel and aluminum tariffs? - Management indicated that they are managing costs through supplier relationships and have not seen a significant change in expected tariff impacts [41][43] Question: What is the outlook for the fire business and delivery timelines? - Management noted that delivery timelines are improving, and they expect to maintain competitive lead times while managing backlog normalization [51][53] Question: How is the company approaching capital deployment with strong cash flow? - Management emphasized the importance of investing in productivity improvements while remaining opportunistic regarding M&A opportunities [76][78]

Fiscal Third Quarter 2025 Highlights - REV Group experienced momentum in year-over-year throughput increases[7] - The company broke ground for a $20 million investment in the Brandon, SD facility[7] - REV Group completed the sale of Lance Camper[7] - The company demonstrated strong cash generation and a solid balance sheet position[7] - REV Group raised its fiscal year 2025 outlook[7] Third Quarter Fiscal 2025 Consolidated Results - Net sales increased to $644.9 million in Q3 2025, compared to $579.4 million in Q3 2024[9], a $109.7 million or 20.5% increase excluding Bus Manufacturing Businesses[13] - Adjusted EBITDA increased to $64.1 million in Q3 2025, compared to $45.2 million in Q3 2024[9], a $25.5 million or 66.1% increase excluding Bus Manufacturing Businesses[13] Full Year Fiscal 2025 Outlook - REV Group updated its net sales guidance to $2.40 to $2.45 billion, compared to the prior guidance of $2.35 to $2.45 billion and the 2024 actual of $2.38 billion[27] - The company updated its Adjusted EBITDA guidance to $220 to $230 million, compared to the prior guidance of $200 to $220 million and the 2024 actual of $162.8 million[27] - REV Group updated its Free Cash Flow guidance to $140 to $150 million, compared to the prior guidance of $100 to $120 million[27] Balance Sheet & Other Financial Items - Year-to-date cash from operations totaled $164.2 million[25] - Net debt was $54.0 million[25] - Trade working capital decreased by $56.6 million compared to 4Q24[26] - $117.6 million cash was returned to shareholders year to date[26]

Financial Performance - Consolidated net sales increased by $65.5 million, or 11.3%, for the three months ended July 31, 2025, compared to the prior year quarter, reaching $644.9 million[96]. - Gross profit for the three months ended July 31, 2025, increased by $23.4 million, or 29.9%, to $101.7 million, with a gross margin of 15.8%[98]. - Adjusted EBITDA for the three months ended July 31, 2025, was $64.1 million, compared to $45.2 million in the prior year quarter[95]. - Net income for the three months ended July 31, 2025, was $29.1 million, an increase from $18.0 million in the prior year quarter[95]. - Consolidated net income for the three months ended July 31, 2025, was $29.1 million, a 61.7% increase from $18.0 million in the prior year quarter[108]. - Consolidated net income for the nine months ended July 31, 2025, decreased by $149.6 million compared to the prior year period[109]. - Adjusted EBITDA for the nine months ended July 31, 2025, was $159.8 million, a 41.2% increase from $113.2 million in the prior year period[110]. - Adjusted Net Income for the nine months ended July 31, 2025, was $94.9 million, compared to $60.4 million in 2024[141]. Segment Performance - The Specialty Vehicles segment saw increased shipments and a favorable mix of fire apparatus and ambulance units, contributing to higher net sales[96]. - Specialty Vehicles segment net sales for the three months ended July 31, 2025, increased by $51.2 million, or 11.8%, to $483.3 million compared to $432.1 million in the prior year quarter[116]. - Specialty Vehicles segment Adjusted EBITDA for the three months ended July 31, 2025, increased by $20.3 million, or 45.8%, to $64.6 million compared to $44.3 million in the prior year quarter[116]. - The Recreational Vehicles segment experienced higher shipments of motorized units, although it was partially offset by increased dealer assistance on certain models[96]. - Recreational Vehicles segment net sales for the three months ended July 31, 2025, increased by $14.3 million, or 9.7%, to $161.7 million compared to $147.4 million in the prior year quarter[120]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended July 31, 2025, was $164.2 million, compared to a net cash used of $15.2 million in the prior year[128]. - Net cash used in investing activities for the nine months ended July 31, 2025, was $25.7 million, while net cash provided was $301.8 million in 2024, primarily from the sale of Collins and Fire RTC[130]. - Net cash used in financing activities for the nine months ended July 31, 2025, was $127.1 million, down from $257.4 million in 2024, with share repurchases of $107.6 million and dividends paid of $10.0 million[131]. - The company anticipates that available sources of liquidity and capital will be sufficient to finance operations and growth strategy for at least the next twelve months[127]. - The company expects to pay a quarterly cash dividend of $0.06 per share, with cash dividends of $3.0 million paid during the third quarter of fiscal year 2025[132]. - The company repurchased 3,456,979 shares at a cost of $107.6 million during the nine months ended July 31, 2025, averaging approximately $31.10 per share[134]. Business Strategy and Operations - The company sold Collins and discontinued manufacturing operations at ENC in the first quarter of fiscal year 2024, impacting its business strategy[93]. - The company actively evaluates acquisition opportunities to improve and expand its business, with a focus on targeted acquisitions consistent with its strategy[92]. - Total backlog as of July 31, 2025, was $4,499.8 million, an increase from $4,354.7 million as of July 31, 2024[125]. Risk and Financial Condition - The company has not created any off-balance sheet arrangements that could materially affect its financial condition[142]. - There have been no material changes in the company's exposure to interest rate risk, foreign exchange risk, and commodity price risk[145]. - As of July 31, 2025, the outstanding debt under the Amended 2021 ABL Facility was $90.0 million, with availability of $247.2 million[136].

Financial Performance - Consolidated net sales for Q3 2025 were $644.9 million, a 20.5% increase from $579.4 million in Q3 2024, excluding $44.2 million from Bus Manufacturing Businesses[2][5] - Net income for Q3 2025 was $29.1 million, or $0.59 per diluted share, compared to $18.0 million, or $0.35 per diluted share in Q3 2024[3][5] - Adjusted EBITDA for Q3 2025 was $64.1 million, a 66.1% increase from $45.2 million in Q3 2024, excluding $6.6 million from Bus Manufacturing Businesses[3][5] - Gross profit for Q3 2025 was $101.7 million, up 29.9% from $78.3 million in Q3 2024[26] - Operating income increased to $57.0 million in Q3 2025, compared to $28.6 million in Q3 2024, representing a 99.3% growth[26] - For the three months ended July 31, 2025, the total net income was $29.1 million, an increase from $18.0 million in the same period of 2024, representing a 61.1% year-over-year growth[31] - Adjusted EBITDA for the three months ended July 31, 2025, was $64.1 million, compared to $45.2 million for the same period in 2024, reflecting a 42.0% increase[31] - For the nine months ended July 31, 2025, the total net income was $66.3 million, down from $215.9 million in the same period of 2024, indicating a decline of 69.4%[33] - The adjusted EBITDA for the nine months ended July 31, 2025, was $159.8 million, compared to $113.2 million for the same period in 2024, showing an increase of 41.2%[33] Segment Performance - Specialty Vehicles segment net sales were $483.3 million in Q3 2025, an 11.8% increase from $432.1 million in Q3 2024, with a backlog of $4,275.5 million[7][8] - Recreational Vehicles segment net sales were $161.7 million in Q3 2025, a 9.7% increase from $147.4 million in Q3 2024, with a backlog of $224.3 million[9][10] - Specialty Vehicles segment net sales rose to $483.3 million in Q3 2025, up from $432.1 million in Q3 2024, reflecting a 11.9% growth[29] - Period-end backlog for Specialty Vehicles was $4,275.5 million as of July 31, 2025, slightly down from $4,282.0 million as of April 30, 2025[29] Guidance and Projections - Updated full-year fiscal 2025 guidance includes net sales of $2.4 to $2.45 billion and adjusted EBITDA of $220.0 to $230.0 million[5][14] - The company projects adjusted EBITDA for fiscal year 2025 to be between $220.0 million and $230.0 million[37] - The outlook for net income in fiscal year 2025 is estimated to be between $95.4 million and $107.6 million[39] - Free cash flow for fiscal year 2025 is expected to range from $140.0 million to $150.0 million[41] Capital and Debt Management - Capital expenditures in Q3 2025 were $11.6 million, up from $5.9 million in Q3 2024[11] - The company has $54.0 million in net debt and $247.2 million available under its ABL revolving credit facility as of July 31, 2025[11] Dividends and Shareholder Returns - A quarterly cash dividend of $0.06 per share was declared, equating to an annualized rate of $0.24 per share[15] Other Financial Metrics - Total assets increased to $1,219.0 million as of July 31, 2025, compared to $1,213.0 million as of October 31, 2024[25] - Total liabilities rose to $831.7 million as of July 31, 2025, compared to $777.9 million as of October 31, 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $36.0 million, up from $24.6 million at the beginning of the period[27] - The company reported a net loss on the sale of business and assets of $36.7 million for the nine months ended July 31, 2025[33] - Stock-based compensation expense for the three months ended July 31, 2025, was $3.3 million, up from $1.9 million in the same period of 2024[35] - The provision for income taxes for the three months ended July 31, 2025, was $11.9 million, compared to $4.4 million in the same period of 2024[31] Expansion Plans - The company is expanding its Spartan Emergency Response facility to increase production capacity[6]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

Group 1 - REV Exploration Corp. has completed the acquisition of the Aden Dome Natural Hydrogen Project in Alberta, receiving final approval from the TSX Venture Exchange [1][2] - The acquisition was conducted on an arm's-length basis, with no finder's fees paid, and all conditions of the purchase agreement have been satisfied, including the issuance of 300,000 common shares at a deemed price of C$0.27 per share [2] - With this acquisition, REV now holds a 100% interest in the Aden Dome project and plans to proceed with exploration activities [2][3] Group 2 - REV Exploration Corp. is a mineral exploration company with a portfolio that includes gold and battery metal properties in Quebec, as well as significant exposure to the Natural Hydrogen sector in Alberta and Saskatchewan [3] - The company has an option to acquire 100% of a series of PNG leases along the Alberta-Montana border, including the drill-ready Aden Dome, and holds a significant equity position in MAX Power Mining Corp., which has the largest permitted land package for Natural Hydrogen in Saskatchewan [3]

Core Viewpoint - REV Group (REVG) has shown strong stock performance, with a 56.9% increase since the beginning of the year, outperforming the Zacks Transportation sector and the Zacks Transportation - Services industry [1][2]. Financial Performance - REV Group has consistently beaten earnings estimates, reporting EPS of $0.7 against a consensus estimate of $0.59 in its last earnings report [2]. - For the current fiscal year, REV Group is projected to achieve earnings of $2.45 per share on revenues of $2.41 billion, reflecting a 54.09% increase in EPS and a 1.07% increase in revenues [3]. - The next fiscal year forecasts earnings of $3.36 per share on revenues of $2.6 billion, indicating a year-over-year change of 37.01% in EPS and 7.89% in revenues [3]. Valuation Metrics - REV Group has a Value Score of B, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of B [6]. - The stock trades at 20.4 times the current fiscal year EPS estimates, which is above the peer industry average of 18.8 times [6]. - On a trailing cash flow basis, the stock trades at 26.1 times compared to the peer group's average of 7.5 times, indicating a premium valuation [6]. Zacks Rank - REV Group holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, suggesting potential for further stock price appreciation [7]. - The combination of a Zacks Rank of 1 or 2 and Style Scores of A or B positions REV Group favorably for investors [7].

Group 1 - REV Group, a specialty vehicle manufacturer, reported growth in its topline after experiencing consecutive declines in the past four quarters [1] - The growth was primarily attributed to a double-digit contraction in previous periods [1] Group 2 - The company is engaged in the technology, industrial, and conglomerate sectors, focusing on businesses with strong foundations for long-term success [1] - The analysis emphasizes a combination of financial examination and narrative to provide insights into market performance [1]

Group 1 - The recovery of REV Group, Inc. (NYSE: REVG) has materialized within two months, indicating a more manageable market despite ongoing volatility [1] - The company is navigating the current market conditions with prudent inventory management [1] - The analyst has extensive experience in the logistics sector and has been involved in stock investing and macroeconomic analysis for nearly a decade [1] Group 2 - The analyst focuses on ASEAN and NYSE/NASDAQ stocks, particularly in sectors such as banks, telecommunications, logistics, and hotels [1] - The analyst's investment strategy includes diversification across different industries and market cap sizes, with holdings for both retirement and trading profits [1] - The analyst entered the US market in 2020 and has been using analyses from Seeking Alpha to compare with the Philippine market [1]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news and publications, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment or purchasing decisions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research before making investment decisions, particularly regarding instruments they do not fully understand [1].