REV Group(US:REVG)2025-12-10 12:16Financial 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].