REV Group, Inc. Announces Strong Fiscal 2025 Fourth Quarter And Full Year Earnings Results

REV Group, Inc. (REVG) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of $0.84, beating the consensus estimate of $0.78, while revenue reached $664.4 million, surpassing the forecast of $646.8 million. This marks a notable achievement for REV Group, reflecting a positive trajectory in its financial health and operational efficiency.

Key Highlights:

• Fourth quarter net sales reached $664.4 million, a 10.8% increase from $597.9 million in Q4 2024.
• Full year net sales totaled $2,463.5 million, up 3.5% from $2,380.2 million in 2024.
• Fourth quarter net income was $28.9 million, down from $41.7 million in Q4 2024; full year net income was $95.2 million, significantly lower than $257.6 million in 2024.
• Adjusted EBITDA for Q4 2025 was $69.7 million, a 40.4% increase from $50.2 million in Q4 2024.
• The company announced a strategic merger with Terex Corporation, expected to close in the first half of 2026.
• Specialty Vehicles segment net sales increased by 15.3% in Q4 2025, while Recreational Vehicles segment sales decreased slightly by 0.6%.

Summary: REV Group, Inc. reported strong financial results for the fourth quarter and full year of fiscal 2025, with net sales of $664.4 million for Q4 and $2,463.5 million for the full year. The company experienced a notable increase in sales within its Specialty Vehicles segment, driven by higher unit shipments of fire apparatus and ambulances. However, net income for the fourth quarter decreased to $28.9 million compared to $41.7 million in the previous year, reflecting challenges in the Recreational Vehicles segment, which saw a slight decline in sales. Adjusted EBITDA for Q4 rose significantly to $69.7 million, indicating improved operational efficiency.

President and CEO Mark Skonieczny highlighted the company’s operational and financial improvements, stating, “This has been a year of significant operational, financial and organizational change, and the team delivered exceptionally well.” He emphasized the strategic merger with Terex Corporation as a pivotal move to enhance the company’s scale and shareholder returns, indicating a positive outlook as they enter fiscal 2026 with strong momentum. The merger is expected to position REV Group for future growth and expansion in the automotive manufacturing sector.

REV Group, Inc. (REVG) has experienced a rollercoaster of price changes recently, with a notable 3.88% increase over the past week and a striking 87.50% surge over the last year, showcasing strong investor interest. However, the stock has faced some volatility, evidenced by a 10.38% decline over the past three months, which may raise eyebrows among potential investors. On the fundamental side, the company boasts a robust price-to-earnings ratio of 26.42, indicating that investors are willing to pay a premium for its earnings potential. The impressive two-year compound annual growth rate (CAGR) of 128.36% in earnings per share suggests that REV Group is on a solid growth trajectory, despite a slight dip in revenue CAGR of -3.39%. Additionally, the company has demonstrated strong free cash flow growth at 61.11%, which is a positive sign for its financial health. With a return on invested capital of 18.80% and a net profit margin of 4.49%, REV Group appears to be effectively managing its resources and generating profits. Overall, while the stock’s recent fluctuations may concern some, the underlying fundamentals present a compelling case for long-term growth.

REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, and Ladder Tower brands; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brands. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Capacity, ENC, and Lay-Mor brands. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade, Midwest, and Lance brands; and produces a range of custom molded fiberglass products for the heavy-duty truck, RV, and broader industrial markets. The company sells its products to municipalities, government agencies, private contractors, consumers, and industrial and commercial end users through its direct sales force or dealer network. The company was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. REV Group, Inc. is based in Brookfield, Wisconsin.