REV Group Reports 11.3% Increase in Q3 Net Sales to $644.9 Million

REV Group, Inc. reported a significant increase in financial performance for the third quarter of fiscal year 2025, with net sales reaching $644.9 million, up 11.3% from $579.4 million in the same period last year. The company’s gross profit also saw a notable rise, increasing by 29.9% to $101.7 million, compared to $78.3 million in the prior year. For the nine months ending July 31, 2025, net sales totaled $1.799 billion, a slight increase of 0.9% from $1.782 billion in the previous year, while gross profit rose 22.3% to $267.2 million from $218.5 million.

The company experienced a marked improvement in operating income, which increased to $57.0 million for the quarter, compared to $28.6 million in the prior year. This growth was attributed to higher sales volumes and improved margins, particularly in the Specialty Vehicles segment, which benefited from increased shipments and a favorable product mix. However, net income for the nine-month period decreased significantly to $66.3 million from $215.9 million, primarily due to substantial gains from the sale of businesses in the previous year, including a $260.4 million gain from the sale of Collins.

Strategically, REV Group has been active in optimizing its portfolio through divestitures. The company completed the sale of its Lance and Avery businesses in June 2025, resulting in a loss of $39.6 million for the nine months ended July 31, 2025. This follows the earlier sale of Collins, which had a positive impact on the previous year's results. The company has also focused on restructuring efforts, including the discontinuation of manufacturing operations at its ElDorado National facility, which was aimed at streamlining operations and enhancing profitability.

Operationally, REV Group reported a backlog of $4.5 billion as of July 31, 2025, reflecting a year-over-year increase driven by strong demand in the Specialty Vehicles segment. The company’s workforce has also seen changes, with a focus on attracting and retaining qualified personnel to support its growth initiatives. As of the latest report, the company had a total of 48,798,333 shares outstanding, with a share repurchase program in place that has seen the retirement of 3.5 million shares at a cost of $107.6 million during the nine months.

Looking ahead, REV Group anticipates continued growth driven by strong demand in its Specialty Vehicles segment, although it remains cautious about potential economic headwinds and market conditions that could impact sales. The company plans to leverage its existing backlog and focus on operational efficiencies to enhance profitability in the coming quarters.