REV Group Q4: Mixed Results, $250 Million Buyback, Dividend Boost & More
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REV Group, Inc. (NYSE:REVG) shares are trading higher after the company reported fourth-quarter results.
Net sales of $597.9 million missed the consensus of $603.3 million. Excluding the impact of the Collins divestiture, net sales decreased 6.4% year over year due to lower net sales in the Recreational Vehicles segment.
Specialty Vehicles segment net sales fell 8.1% Y/Y while Recreational Vehicles segment net sales declined 26.5% Y/Y.
Adjusted EBITDA stood at $49.6 million, vs. $54.0 million a year ago quarter. Adjusted EPS of 51 cents exceeded the street view of 49 cents.
As of October 31, net debt totaled $60.4 million, with $24.6 million cash on hand.
The board of directors raised its regular quarterly cash dividend per share to $0.06, payable on January 10, 2025, to shareholders of record on December 26, 2024. This equates to a rate of $0.24 per share of common stock on an annualized basis, representing a 20% increase from fiscal year 2024.
On December 5, 2024, the board of directors authorized a new $250 million share repurchase program, replacing the previous $175 million program, under which $126.1 million had been repurchased since June 2023.
Outlook: REV Group expects FY25 net sales of $2.3 billion – $2.4 billion vs. an estimate of $2.45 billion and the adjusted net income of $116 million – $140 million.
For FY25-FY27, the company expects net sales growth of 6% – 8% (CAGR) and Free Cash Flow of over $350 million.
REV Group Inc. President and CEO Mark Skonieczny said, ”In addition, within fiscal 2024, we divested non-core assets, simplified our reporting structure and returned significant cash to shareholders.”
Investors can gain exposure to the stock via Cambria Shareholder Yield ETF (BATS:SYLD) and Cambria ETF Trust Cambria Micro And SmallCap Shareholder Yield ETF (BATS:MYLD).
Price Action: REVG shares are up 16.7% at $34.53 at the last check Wednesday.
Price Action:
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