REV Group, Inc. (REVG) reported fiscal 2025 fourth‑quarter net sales of $664.4 million, up 11.8% from $597.9 million in Q4 2024, and full‑year net sales of $2.4635 billion, a 11.1% increase over $2.38 billion in 2024. Adjusted EBITDA rose to $69.7 million in the quarter, a 39.7% jump from $49.6 million, and to $229.5 million for the year, a 58.1% rise from $162.8 million. The company’s adjusted earnings per share were $0.83, beating the consensus estimate of $0.78 by $0.05 (6.4%). Revenue also surpassed the $647.12 million estimate by $17.28 million (2.7%).
Specialty vehicle sales drove the majority of the growth, with net sales up 15.3% to $507.4 million and a backlog of $4.402 billion, compared with $4.180 billion a year earlier. The recreational vehicle segment saw a modest 0.6% decline to $157.2 million, but its adjusted EBITDA margin improved to 13.9% from 11.4% in Q4 2024, reflecting stronger pricing power and a more favorable product mix. Overall adjusted EBITDA margin for the quarter expanded to 10.5% from 8.3% in Q4 2024, driven by higher specialty vehicle volumes and disciplined cost management.
Management highlighted that the earnings beat was largely a result of disciplined cost control and operational leverage. CEO Mark Skonieczny noted that “improved efficiency and throughput, coupled with a stronger mix of high‑margin specialty vehicles, enabled us to maintain pricing power even as raw‑material costs rose.” CFO Amy Campbell added that the company’s capital‑expenditure focus on facility modernization and supply‑chain resilience helped keep variable costs in check, supporting margin expansion. The company also announced a quarterly dividend of $0.06 per share, payable January 9 2026, and reiterated its commitment to returning cash to shareholders through dividends and share repurchases.
Investors reacted positively to the results, with analysts citing the EPS and revenue beats, margin expansion, and robust specialty‑vehicle backlog as key drivers. The market’s enthusiasm reflected confidence in REV Group’s ability to translate strong demand into profitability, especially in the fire apparatus and ambulance markets that benefit from municipal budget cycles. The company’s free‑cash‑flow generation of $190 million for the year and a net‑debt reduction to $5.3 million further underscored its financial strength.
Looking ahead, REV Group did not provide new guidance for fiscal 2026, citing the pending merger with Terex Corporation. Nevertheless, the company’s strong backlog, improving cash flow, and disciplined capital allocation position it well for the post‑merger period. The merger is expected to close in the first half of 2026, potentially creating scale and shareholder value, while the company’s current operational momentum suggests continued resilience in the specialty‑vehicle segment.
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