REV Group, Inc. Reports Strong Fiscal 2025 First Quarter Results; Reaffirms 2025 Guidance
-
First quarter net sales of
$525.1 million $586.0 million $76.6 million -
Excluding the impact of the Bus Manufacturing Businesses, net sales increased
$15.7 million 3.1% compared to the prior year quarter
-
Excluding the impact of the Bus Manufacturing Businesses, net sales increased
-
First quarter net income of
$18.2 million $182.7 million $257.5 million Collins 1 -
Record first quarter Adjusted EBITDA2 was
$36.8 million $30.5 million $9.9 million -
Excluding the impact of the Bus Manufacturing Businesses, Adjusted EBITDA increased
$16.2 million 78.6% compared to the prior year quarter.
-
Excluding the impact of the Bus Manufacturing Businesses, Adjusted EBITDA increased
-
First quarter Adjusted Net Income2 of
$20.9 million $14.7 million -
The company repurchased approximately 0.6 million of its common shares for
$19.2 million - Reaffirms the 2025 guidance provided in our December 11, 2024 fourth quarter earnings press release
The company’s first quarter 2025 net income was
“We are pleased to have delivered record first quarter results, demonstrating the strength of our operational execution and disciplined approach. This performance reinforces our confidence in the momentum we are building and positions us well for the year ahead. As a result, we are reaffirming our Fiscal 2025 guidance provided in December,” REV Group Inc. President and CEO, Mark Skonieczny, said. “Within the quarter we utilized our strong balance sheet and financial position to recommence share repurchases, which we view as an attractive use of capital at the current valuation. With a solid foundation of execution and momentum in place, we remain focused on driving continued growth and creating long-term value for our shareholders.”
__________________________ |
1 In fiscal 2024, the company exited bus manufacturing through the sale Collins Bus Corporation (“Collins”) in the first quarter, and El Dorado National ( |
2 REV Group, Inc. Adjusted Net Income and Adjusted EBITDA are non-GAAP measures that are reconciled to their nearest GAAP measure later in this release. |
REV Group First Quarter Segment Highlights
Specialty Vehicles Segment
Specialty Vehicles segment net sales were
Specialty Vehicles segment Adjusted EBITDA was
Recreational Vehicles Segment
Recreational Vehicles segment net sales were
Recreational Vehicles segment Adjusted EBITDA was
Working Capital, Liquidity, and Capital Allocation
Net debt3 totaled
During the first quarter 2025, the company repurchased approximately 0.6 million of its common shares for
__________________________ |
3 Net Debt is defined as total debt less cash and cash equivalents. |
4 Trade Working Capital is defined as accounts receivable plus inventories less accounts payable and customer advances. |
Quarterly Dividend
The company’s board of directors declared a regular quarterly cash dividend in the amount of
Conference Call
A conference call to discuss the company’s first quarter 2025 business and financial results and our outlook is scheduled for March 5, 2025, at 10:00 a.m. ET. A supplemental slide deck will be available on the REV Group, Inc. investor relations website. The call will be webcast simultaneously over the Internet. To access the webcast, listeners can go to http://investors.revgroup.com/investor-events-and-presentations/events at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website.
About REV Group
REV Group (REVG) companies are leading designers and manufacturers of specialty vehicles and related aftermarket parts and services, which serve a diversified customer base, primarily in
Note Regarding Non-GAAP Measures
The company reports its financial results in accordance with
The company believes that the use of Adjusted EBITDA and Adjusted Net Income provide additional meaningful methods of evaluating certain aspects of its operating performance from period to period on a basis that may not be otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. A reconciliation of Adjusted EBITDA and Adjusted Net Income to the most closely comparable financial measures calculated in accordance with GAAP is included in the financial appendix of this news release.
Cautionary Statement About Forward-Looking Statements
This news release contains statements that the company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. This news release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “estimate,” “expect,” “guidance,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate,” “aim,” “strive,” “goal,” “seek,” “forecast” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this news release and include statements regarding our intentions, beliefs, goals or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate, including REV Group’s outlook for the full fiscal year 2025.
Our forward-looking statements are subject to risks and uncertainties, including those highlighted under “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the company’s annual report on Form 10-K, and in the company’s subsequent quarterly reports on Form 10-Q, together with the company’s other filings with the SEC, which risks and uncertainties may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which only speak as of the date hereof. The company does not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise.
REV GROUP, INC. AND SUBSIDIARIES CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) |
||||||||
|
||||||||
|
|
(Audited) |
|
|||||
|
|
January 31,
|
|
|
October 31,
|
|
||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
31.6 |
|
|
$ |
24.6 |
|
Accounts receivable, net |
|
|
185.3 |
|
|
|
152.3 |
|
Inventories, net |
|
|
601.8 |
|
|
|
602.8 |
|
Other current assets |
|
|
21.6 |
|
|
|
26.8 |
|
Total current assets |
|
|
840.3 |
|
|
|
806.5 |
|
Property, plant and equipment, net |
|
|
129.5 |
|
|
|
130.2 |
|
Goodwill |
|
|
137.7 |
|
|
|
137.7 |
|
Intangible assets, net |
|
|
94.8 |
|
|
|
95.4 |
|
Right of use assets |
|
|
30.4 |
|
|
|
32.1 |
|
Deferred income taxes |
|
|
3.7 |
|
|
|
5.4 |
|
Other long-term assets |
|
|
5.7 |
|
|
|
5.7 |
|
Total assets |
|
$ |
1,242.1 |
|
|
$ |
1,213.0 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
169.8 |
|
|
$ |
188.8 |
|
Short-term customer advances |
|
|
152.4 |
|
|
|
158.0 |
|
Accrued compensation |
|
|
23.4 |
|
|
|
33.7 |
|
Short-term accrued warranty |
|
|
19.2 |
|
|
|
20.0 |
|
Short-term lease obligations |
|
|
7.3 |
|
|
|
7.3 |
|
Other current liabilities |
|
|
62.6 |
|
|
|
61.5 |
|
Total current liabilities |
|
|
434.7 |
|
|
|
469.3 |
|
Long-term debt |
|
|
140.0 |
|
|
|
85.0 |
|
Long-term customer advances |
|
|
174.7 |
|
|
|
160.1 |
|
Long-term lease obligations |
|
|
24.1 |
|
|
|
25.7 |
|
Other long-term liabilities |
|
|
39.8 |
|
|
|
37.8 |
|
Total liabilities |
|
|
813.3 |
|
|
|
777.9 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders' Equity: |
|
|
|
|
|
|
||
Preferred stock ( |
|
|
— |
|
|
|
— |
|
Common stock ( |
|
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
|
295.5 |
|
|
|
316.5 |
|
Retained earnings |
|
|
132.6 |
|
|
|
118.3 |
|
Accumulated other comprehensive income |
|
|
0.6 |
|
|
|
0.2 |
|
Total shareholders' equity |
|
|
428.8 |
|
|
|
435.1 |
|
Total liabilities and shareholders' equity |
|
$ |
1,242.1 |
|
$ |
1,213.0 |
||
|
|
|||||||
REV GROUP, INC. AND SUBSIDIARIES CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In millions, except share and per share amounts) |
||||||||
|
||||||||
|
Three Months Ended
|
|
||||||
|
2025 |
|
|
2024 |
||||
Net sales |
$ |
525.1 |
|
$ |
586.0 |
|
||
Cost of sales |
|
455.3 |
|
|
|
523.1 |
|
|
Gross profit |
|
69.8 |
|
|
62.9 |
|
||
Operating expenses: |
|
|
|
|||||
Selling, general and administrative |
|
|
41.2 |
|
|
|
55.4 |
|
Amortization of intangible assets |
|
|
0.6 |
|
|
|
0.6 |
|
Restructuring |
|
|
— |
|
|
|
0.8 |
|
Impairment charges |
|
|
— |
|
|
|
12.6 |
|
Total operating expenses |
|
|
41.8 |
|
|
|
69.4 |
|
Operating income (loss) |
|
|
28.0 |
|
|
|
(6.5 |
) |
Interest expense, net |
|
|
6.0 |
|
|
|
6.8 |
|
Gain on sale of business |
|
|
— |
|
|
|
(257.5 |
) |
Income before provision for income taxes |
|
|
22.0 |
|
|
|
244.2 |
|
Provision for income taxes |
|
|
3.8 |
|
|
|
61.5 |
|
Net income |
|
$ |
18.2 |
|
|
$ |
182.7 |
|
|
|
|
|
|
|
|||
Net income per common share: |
|
|
|
|
|
|||
Basic |
|
$ |
0.35 |
|
|
$ |
3.09 |
|
Diluted |
|
|
0.35 |
|
|
|
3.06 |
|
Dividends declared per common share |
|
|
0.06 |
|
|
3.05 |
|
|
|
|
|
|
|
||||
Adjusted net income per common share: |
|
|
|
|
|
|||
Basic |
|
$ |
0.40 |
|
$ |
0.25 |
|
|
Diluted |
|
|
0.40 |
|
|
0.25 |
|
|
|
||||||||
Weighted Average Shares Outstanding: |
|
|
|
|
||||
Basic |
|
51,615,748 |
|
|
59,050,739 |
|
||
Diluted |
|
52,282,534 |
|
|
59,782,309 |
|
||
REV GROUP, INC. AND SUBSIDIARIES CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
||||||||
|
||||||||
Three Months Ended
|
||||||||
|
|
2025 |
|
|
2024 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|||
Net income |
$ |
18.2 |
|
|
$ |
182.7 |
|
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|||
Depreciation and amortization |
|
6.0 |
|
|
|
6.5 |
|
|
Stock-based compensation expense |
|
|
2.6 |
|
|
|
2.9 |
|
Deferred income taxes |
|
|
1.7 |
|
|
|
0.7 |
|
Impairment charges |
|
|
— |
|
|
|
12.6 |
|
Gain on sale of business |
|
|
— |
|
|
|
(257.5 |
) |
Other non-cash adjustments |
|
|
0.4 |
|
|
|
0.4 |
|
Changes in operating assets and liabilities, net |
|
|
(42.0 |
) |
|
|
(18.0 |
) |
Net cash used in operating activities |
|
|
(13.1 |
) |
|
|
(69.7 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|||
Purchase of property, plant and equipment |
|
|
(4.9 |
) |
|
|
(10.5 |
) |
Proceeds from sale of business |
|
|
— |
|
|
308.2 |
|
|
Other investing activities |
|
|
0.1 |
|
|
— |
|
|
Net cash (used in) provided by investing activities |
|
|
(4.8 |
) |
|
|
297.7 |
|
Cash flows from financing activities: |
|
|
|
|
|
|||
Net proceeds (payments) from borrowings on revolving credit facility |
|
|
55.0 |
|
|
|
(150.0 |
) |
Payment of dividends |
|
|
(3.9 |
) |
|
|
(3.1 |
) |
Repurchase and retirement of common stock |
|
|
(19.2 |
) |
|
|
— |
|
Other financing activities |
|
|
(7.0 |
) |
|
|
(8.3 |
) |
Net cash provided by (used in) financing activities |
|
|
24.9 |
|
|
|
(161.4 |
) |
Net increase in cash and cash equivalents |
|
|
7.0 |
|
|
|
66.6 |
|
Cash and cash equivalents, beginning of period |
|
|
24.6 |
|
|
|
21.3 |
|
Cash and cash equivalents, end of period |
|
$ |
31.6 |
|
|
$ |
87.9 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|||
Cash paid for: |
|
|
|
|
|
|
||
Interest |
|
$ |
4.7 |
|
|
$ |
6.2 |
|
Income taxes, net of refunds |
|
$ |
— |
|
|
$ |
6.8 |
|
REV GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (In millions; unaudited) |
||||||||||||
|
||||||||||||
|
Three Months Ended January 31, |
|
||||||||||
|
2025 |
|
2024 |
|
|
|||||||
Net Sales: |
|
|
|
|||||||||
Specialty Vehicles |
$ |
370.2 |
|
|
$ |
417.2 |
|
|
||||
Recreational Vehicles |
|
155.0 |
|
|
|
169.4 |
|
|
|
|||
Corporate & Other |
|
(0.1 |
) |
|
|
(0.6 |
) |
|
|
|
||
Total |
$ |
525.1 |
|
|
$ |
586.0 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||
Specialty Vehicles |
$ |
35.2 |
|
|
$ |
26.2 |
|
|
|
|||
Recreational Vehicles |
|
9.2 |
|
|
|
11.6 |
|
|
|
|
||
Corporate & Other |
|
(7.6 |
) |
|
|
(7.3 |
) |
|
|
|
||
Total |
$ |
36.8 |
|
|
$ |
30.5 |
|
|
||||
|
|
|
|
|
|
|||||||
Adjusted EBITDA Margin: |
|
|
|
|
|
|
||||||
Specialty Vehicles |
|
|
9.5 |
% |
|
|
6.3 |
% |
|
|
|
|
Recreational Vehicles |
|
|
5.9 |
% |
|
|
6.8 |
% |
|
|
|
|
Total |
|
|
7.0 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||
Period-End Backlog: |
|
January 31,
|
|
October 31,
|
|
|
January 31,
|
|
||||
Specialty Vehicles |
|
$ |
4,226.1 |
|
$ |
4,179.8 |
|
|
$ |
3,864.1 |
|
|
Recreational Vehicles |
|
|
264.5 |
|
|
291.5 |
|
|
|
376.7 |
|
|
Total |
|
$ |
4,490.6 |
|
|
$ |
4,471.3 |
|
|
$ |
4,240.8 |
|
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited) |
||||||||||||||||
|
Three Months Ended January 31, 2025 |
|
||||||||||||||
|
|
Specialty Vehicles |
|
|
Recreational Vehicles |
|
|
Corporate & Other |
|
|
Total |
|
||||
Net income (loss) |
|
$ |
28.5 |
|
|
$ |
7.5 |
|
|
$ |
(17.8 |
) |
|
$ |
18.2 |
|
Depreciation and amortization |
|
|
3.9 |
|
|
|
1.5 |
|
|
|
0.6 |
|
|
|
6.0 |
|
Interest expense, net |
|
|
2.8 |
|
|
|
0.2 |
|
|
|
3.0 |
|
|
|
6.0 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
3.8 |
|
|
|
3.8 |
|
EBITDA |
|
|
35.2 |
|
|
|
9.2 |
|
|
|
(10.4 |
) |
|
|
34.0 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
2.8 |
|
|
|
2.8 |
|
Adjusted EBITDA |
|
$ |
35.2 |
|
|
$ |
9.2 |
|
|
$ |
(7.6 |
) |
|
$ |
36.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended January 31, 2024 |
|
|||||||||||||
|
|
Specialty Vehicles |
|
|
Recreational Vehicles |
|
|
Corporate & Other |
|
|
Total |
|
||||
Net income (loss) |
|
$ |
255.2 |
|
|
$ |
9.9 |
|
|
$ |
(82.4 |
) |
|
$ |
182.7 |
|
Depreciation and amortization |
|
|
4.3 |
|
|
|
1.6 |
|
|
|
0.6 |
|
|
|
6.5 |
|
Interest expense, net |
|
|
2.4 |
|
|
|
0.1 |
|
|
|
4.3 |
|
|
|
6.8 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
61.5 |
|
|
|
61.5 |
|
EBITDA |
|
|
261.9 |
|
|
|
11.6 |
|
|
|
(16.0 |
) |
|
|
257.5 |
|
Transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
5.0 |
|
|
|
5.0 |
|
Sponsor expense reimbursement |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Restructuring costs |
|
|
0.8 |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
Restructuring related charges |
|
|
6.1 |
|
|
|
— |
|
|
|
— |
|
|
|
6.1 |
|
Impairment charges |
|
|
12.6 |
|
|
|
— |
|
|
|
— |
|
|
|
12.6 |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
2.9 |
|
Legal matters |
|
|
2.3 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
2.9 |
|
Gain on sale of business |
|
|
(257.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(257.5 |
) |
Adjusted EBITDA |
|
$ |
26.2 |
|
|
$ |
11.6 |
|
|
$ |
(7.3 |
) |
|
$ |
30.5 |
|
REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME (In millions; unaudited) |
||||||||
|
||||||||
Three Months Ended
|
|
|||||||
2025 |
|
2024 |
||||||
Net income |
|
$ |
18.2 |
|
$ |
182.7 |
||
Amortization of intangible assets |
|
|
0.6 |
|
|
0.6 |
||
Transaction expenses |
|
|
— |
|
|
5.0 |
|
|
Sponsor expense reimbursement |
|
|
— |
|
|
0.2 |
|
|
Restructuring costs |
|
|
— |
|
|
0.8 |
|
|
Restructuring related charges |
|
|
— |
|
|
6.1 |
|
|
Impairment charges |
|
|
— |
|
|
12.6 |
|
|
Stock-based compensation expense |
|
|
2.8 |
|
|
2.9 |
|
|
Legal matters |
|
|
— |
|
|
2.9 |
|
|
Gain on sale of business |
|
|
— |
|
|
(257.5 |
) |
|
Income tax effect of adjustments |
|
|
(0.7 |
) |
|
58.4 |
|
|
Adjusted Net Income |
|
$ |
20.9 |
|
$ |
14.7 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305578753/en/
Drew Konop
VP, Investor Relations & Corporate FP&A
Email: investors@revgroup.com
Phone: 1-888-738-4037 (1-888-REVG-037)
Source: REV Group, Inc.
