Yahoo Finance

• Revenue: $525 million, a decrease of $61 million from the prior year.

• Adjusted EBITDA: Record first-quarter adjusted EBITDA of $36.8 million, an increase of $6.3 million.

• Specialty Vehicle Segment Sales: $370.2 million, a decrease of $47 million compared to the prior year.

• Specialty Vehicle Segment Adjusted EBITDA: $35.2 million, a segment first-quarter record, increasing by $9 million versus the prior year.

• Recreational Vehicle Segment Sales: $155 million, a decrease of $14.4 million, or 8.5%, versus last year's first quarter.

• Recreational Vehicle Segment Adjusted EBITDA: $9.2 million, a decrease of $2.4 million, or 21%, versus the prior year.

• Backlog: $4.5 billion, providing 2 to 2.5 years of demand visibility within the specialty vehicles segment.

• Net Debt: $108.4 million, including $31.6 million of cash on hand.

• Share Repurchases: $19.2 million used to repurchase 579,000 common shares.

• Cash from Operating Activities: Outflow of $13.1 million.

• Capital Expenditures: $4.9 million within the first quarter.

• Dividend: Quarterly cash dividend of $0.06 per common share declared.

• Warning! GuruFocus has detected 3 Warning Sign with FNLIF.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• REV Group Inc (NYSE:REVG) reported record first-quarter adjusted EBITDA and cash efficiency, exceeding typical seasonality.

• The company has a strong backlog of $4.5 billion, providing 2 to 2.5 years of demand visibility within the specialty vehicles segment.

• The specialty vehicle segment achieved a first-quarter record adjusted EBITDA margin of 9.5%, driven by price realization and improved operations.

• REV Group Inc (NYSE:REVG) commenced share repurchases, returning $19.2 million to shareholders, demonstrating confidence in their long-term strategy.

• The company has implemented a multi-sourcing strategy for key components, reducing the risk of sole-source exposures and improving supply chain resilience.

Negative Points

• First-quarter sales decreased by $61 million compared to the prior year, primarily due to the exit from the bus manufacturing business.

• The recreational vehicle segment experienced an 8.5% decrease in sales due to a decline in unit volumes related to soft in-market demand.

• The segment backlog for recreational vehicles declined by 30% versus the prior year, reflecting soft end-market demand and dealer destocking.

• There is uncertainty regarding the impact of recently enacted tariffs, with potential indirect effects on the supply chain.

• Despite a strong start to the year, the company did not raise its full-year guidance, citing known and unknown risks around inflation and tariffs.