REV Group Reports Q2 Fiscal 2025 Financial Results with Increased Net Income and Sales

REV Group, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a net income of $19.0 million, or $0.38 per diluted share, compared to $15.2 million, or $0.28 per diluted share, in the same period last year. The company’s net sales for the three months ended April 30, 2025, reached $629.1 million, a 2.0% increase from $616.9 million in the prior year. However, for the six months ended April 30, 2025, net sales decreased by 4.0% to $1,154.2 million from $1,202.9 million in the previous year. The gross profit for the quarter was $95.7 million, representing a 23.8% increase from $77.3 million in the same quarter last year, driven by improved margins in the Specialty Vehicles segment.

The company experienced significant changes in its operational structure, particularly with the divestiture of its Collins business, which was completed in January 2024. This strategic move aimed to optimize the company's portfolio and focus on core operations. The divestiture resulted in a gain of $257.5 million in the previous fiscal year, but the current quarter saw a loss of $30.0 million related to assets held for sale as the company continues to pursue the sale of certain businesses within its Recreational Vehicles segment. Additionally, REV Group's selling, general, and administrative expenses decreased to $46.0 million from $50.7 million year-over-year, reflecting cost management efforts and the non-recurrence of transaction expenses related to the previous year’s offerings.

Operationally, the Specialty Vehicles segment reported net sales of $453.9 million for the quarter, a 3.8% increase from the prior year, primarily due to higher shipments of fire apparatus. In contrast, the Recreational Vehicles segment saw a decline in net sales to $175.3 million, down 2.4% from the previous year, attributed to lower unit shipments and increased dealer assistance. The total backlog as of April 30, 2025, was $4.55 billion, an increase from $4.34 billion a year earlier, driven by strong demand in the Specialty Vehicles segment.

Looking ahead, REV Group anticipates continued growth in the Specialty Vehicles segment, supported by ongoing demand for fire apparatus and ambulances. However, the company remains cautious about the Recreational Vehicles segment due to economic conditions affecting consumer spending. The company’s liquidity position appears stable, with cash and cash equivalents totaling $28.8 million as of April 30, 2025, and an available credit facility of $263.2 million. The management expressed confidence in the company’s ability to navigate market challenges and execute its strategic initiatives effectively.