FISCAL FOURTH QUARTER 2025 RESULTS DECEMBER 10, 2025 CAUTIONARY STATEMENT & NON-GAAP MEASURES Disclaimers Note Regarding Non-GAAP Measures REV Group reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management believes that the evaluation of REV Group's ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, and Return on Invested Capital, which are non-GAAP f ...

Q2 2025 Consolidated Results - The company's revenue decreased by 4.0% to $2.73 billion in Q2 2025, compared to $2.85 billion in Q2 2024[7, 22] - Adjusted operating income decreased by 4.7% to $312.9 million in Q2 2025, compared to $328.2 million in Q2 2024[7, 22] - Adjusted EPS increased by 2.1% to $3.41 in Q2 2025, compared to $3.34 in Q2 2024[7, 22] - Adjusted operating income margin remained consistent at 11.5% in both Q2 2025 and Q2 2024[7, 22] Segment Performance - Access segment revenue decreased by 10.7% to $1.26 billion, with an adjusted operating income margin of 14.8%[29, 39] - Vocational segment revenue increased by 15.0% to $970 million, with an adjusted operating income margin of 16.3%[30, 42] - Transport segment revenue decreased by 16.2% to $479 million, with an operating income margin of 3.7%[30, 45] 2025 Outlook - The company expects revenues of approximately $10.6 billion[35] - The company anticipates adjusted operating income of approximately $1.05 billion[35] - The company projects adjusted EPS of approximately $11.00[35] - The company forecasts free cash flow between $400 million and $500 million[35]

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]