MARK SKONIECZNY Chief Executive Officer REV GROUP, INC. JUNE 12, 2024 PRESENTATION TODAY'S PRESENTERS AMY CAMPBELL Chief Financial Officer 2 • President & CEO since January 2023, serves on REV Group's board • Previously REV Group CFO • Prior to REV Group, he served as VP and Corporate Controller at Adient PLC and VP of Corporate Development & VP of Finance at Johnson Controls • CFO since April 2024 • Prior to REV Group, she served as CFO of ASC Engineered Solutions and CFO for BrandSafway's Commercial and I ...

Core Insights - REV Group reported an 8% increase in consolidated mid-point revenue guidance and a 45% year-over-year increase in adjusted EBITDA guidance for fiscal 2025, driven by strong operational gains in the specialty vehicle segment [1] - The company announced a $20 million plant expansion, a strategic exit from the Lance Camper operation, and raised capital expenditure plans while addressing $15 million in expected tariff headwinds [1][6] Specialty Vehicle Segment Performance - The specialty vehicle segment, excluding divested bus operations, achieved a 12.2% revenue increase and a 74.3% surge in adjusted EBITDA compared to the prior year quarter, with record shipment levels in the Spartan Emergency Response business [2] - Segment backlog reached $4.3 billion at quarter-end, supported by a book-to-bill ratio of 1.1 and strong demand for fire apparatus [3][2] Portfolio Optimization - The divestiture of the Lance Camper operation resulted in a one-time $30 million non-cash loss, partially offset by a $16.6 million tax benefit, allowing the company to focus on scalable operations with stronger competitive positioning [4][5] - The motorized RV division continues to drive nearly all EBITDA for the recreation segment, maintaining a 6.2% adjusted EBITDA margin despite a 10% decline in REV brand retail sales [4] Tariff Impact and Strategic Adjustments - New tariffs are expected to impact adjusted EBITDA by $10 million in specialty vehicles and $5 million in recreation for the second half of the fiscal year, prompting a shift to U.S. suppliers for chassis sourcing [6][7] - The company has increased full-year capital expenditure guidance to $45 million–$50 million, with $20 million allocated for expansion projects [6] Future Outlook - Management raised consolidated FY2025 revenue guidance to $2.35 billion–$2.45 billion and adjusted EBITDA guidance to $200 million–$220 million, anticipating specialty vehicle outperformance to offset tariff pressures [8] - Net income guidance, including the Lance Camper divestiture loss, is now projected at $88 million–$107 million, with adjusted net income at $100 million–$130 million [8]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $629.1 million, an increase of $45.1 million or 7.7% compared to Q2 2024, excluding the impact of the divested E and C transit bus business [24][25] - Consolidated adjusted EBITDA was $58.9 million, up from $37.5 million in Q2 2024, representing a 63.6% year-over-year increase when excluding the impact of the divested bus business [25][27] - The company repurchased approximately 2.9 million shares for $88 million during the quarter under a $250 million share repurchase authorization [20][39] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased by $16.5 million to $453.9 million, with a 12.2% increase when excluding the divested transit bus business [27][28] - Specialty Vehicles adjusted EBITDA increased by $24 million or 74.3% year-over-year, driven by higher unit production and manufacturing efficiencies [28][29] - Recreational Vehicle segment sales decreased by $4.4 million or 2.4% due to lower unit shipments amid soft market demand, but maintained a 6.2% adjusted EBITDA margin [32][33] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog was $4.3 billion, reflecting strong demand for fire apparatus and a book-to-bill ratio of 1.1 in Q2 [29] - Recreational Vehicle segment backlog declined by 2% to $268 million, attributed to soft end market demand and dealer caution [35] - REV brand retail sales decreased by 10% year-over-year, compared to a 13% decline in the broader industry [33] Company Strategy and Development Direction - The company is focusing on operational excellence, investing in people and equipment, and product innovation to drive sustainable growth [8][21] - A strategic decision was made to exit the non-motorized travel trailer and truck camper product categories to concentrate on scalable operations with stronger competitive positioning [15][16] - The company plans to increase capital expenditures to enhance throughput and efficiency across its operations [21][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage tariff impacts and maintain updated financial guidance for the year [11][40] - The company anticipates continued growth in the Specialty Vehicles segment, with mid-teens revenue growth expected for the second half of the fiscal year [30][40] - Management noted that the demand for fire and ambulance products is returning to long-term trend levels, with expectations for normalized demand in the back half of the year [61] Other Important Information - The company celebrated the 50th anniversary of its ambulance group, highlighting its commitment to innovation and quality [12][13] - The company has maintained a strong cash flow profile, generating $117 million in cash from operating activities during the quarter [38][42] - The company updated its full-year fiscal 2025 guidance, raising consolidated top-line expectations to a range of $2.35 billion to $2.45 billion [40][41] Q&A Session Summary Question: What is the timeframe for tariff impacts to wash through the backlog and output? - Management expects the RV tariff impact to primarily affect the back half of fiscal 2025, with some potential carryover into early 2026 [44][46] Question: What is the expected return on the $20 million investment in the Brandon facility? - Management indicated that the investment aims to reduce lead times and increase production, but specific return metrics were not disclosed [47][48] Question: How does the sale of Lance impact long-term EBITDA goals? - Management clarified that Lance represents less than 10% of total sales for recreation, thus having no material impact on the 2027 targets [49] Question: Will dealer assistance continue to increase in the second half? - Management expects a softer second half due to consumer confidence risks and the impact of tariffs, but dealer inventory is healthier overall [54][56] Question: What is the demand outlook for the S-one 80 program? - Demand for the S-one 80 program remains strong, with orders increasing across various brands [58][59] Question: What is the current state of wholesale versus retail demand in recreational vehicles? - Retail shipments showed a sequential increase for the first time in 28 months, indicating positive signs, while wholesale orders are expected to improve due to healthier dealer inventory [68][70]