REV Group, Inc. Reports Strong Fiscal 2025 Fourth Quarter and Full Year Results

BROOKFIELD, Wis.--( BUSINESS WIRE)--REV Group, Inc. (NYSE: REVG) today reported results for the three months ended October 31, 2025 (“fourth quarter 2025”). Consolidated net sales in the fourth quarter 2025 were $664.4 million, compared to $597.9 million for the three months ended October 31, 2024 (“fourth quarter 2024”). Net sales for the fourth quarter 2024 included $9.8 million attributable to the Bus Manufacturing Businesses 3. Excluding the impact of the Bus Manufacturing Businesses, net sales increased $76.3 million, or 13.0% compared to the prior year quarter. The increase, excluding the impact of the Bus Manufacturing Businesses, was primarily due to increased net sales in the Special Vehicles segment, partially offset by lower net sales in the Recreational Vehicles segment.

Consolidated net sales were $2,463.5 million for the twelve months ended October 31, 2025 (“full year 2025”), compared to $2,380.2 million for the twelve months ended October 31, 2024 (“full year 2024”). Excluding the impact of the Bus Manufacturing Businesses, net sales increased $246.8 million, or 11.1% compared to the prior year. The increase, excluding the impact of the Bus Manufacturing Businesses, is primarily due to higher net sales in the Specialty Vehicles segment, partially offset by lower net sales in the Recreational Vehicles segment.

The company’s fourth quarter 2025 net income was $28.9 million, or $0.59 per diluted share, compared to net income of $41.7 million, or $0.80 per diluted share, in the fourth quarter 2024. Adjusted Net Income for the fourth quarter 2025 was $40.9 million, or $0.83 per diluted share, compared to Adjusted Net Income of $26.9 million, or $0.51 per diluted share, in the fourth quarter 2024. Net income for the full year 2025 was $95.2 million, or $1.89 per diluted share, compared to net income of $257.6 million, or $4.72 per diluted share in full year 2024.

Adjusted EBITDA in the fourth quarter 2025 was $69.7 million, compared to $49.6 million in the fourth quarter 2024. Adjusted EBITDA for the fourth quarter 2024 included a $0.3 million loss attributable to the Bus Manufacturing Businesses. Excluding the impact of the Bus Manufacturing Businesses, Adjusted EBITDA increased $19.8 million, or 39.7% compared to the prior year quarter. The increase was primarily due to the higher contribution from the Specialty Vehicles and Recreational Vehicles segments. Full year 2025 Adjusted EBITDA was $229.5 million, compared to $162.8 million in full year 2024. Excluding the impact of the Bus Manufacturing Businesses, Adjusted EBITDA increased $84.3 million, or 58.1% compared to the prior year.

“This has been a year of significant operational, financial and organizational change, and the team delivered exceptionally well. We improved efficiency and throughput, and saw strong execution from our supply chain group, which helped us manage costs effectively,” President and CEO, Mark Skonieczny, said. “Sustained operational performance provided confidence to increase capital investments in key areas, while record cash flow also supported a reduction of debt and a return of cash to shareholders in the form of share repurchases and regular cash dividends. We are entering fiscal 2026 with continued strong momentum of financial and operational performance. With the recent Terex merger announcement, we’re taking an important step that positions the business to build on the progress of the past three years at greater scale, and supports stronger shareholder returns in the years ahead.”

REV Group Fourth Quarter Segment Highlights

Specialty Vehicles Segment Highlights

Specialty Vehicles segment net sales were $507.4 million in the fourth quarter 2025, an increase of $67.5 million, or 15.3%, from $439.9 million in the fourth quarter 2024. Net sales for the fourth quarter 2024 included $9.8 million attributable to the Bus Manufacturing Businesses. Excluding the impact of the Bus Manufacturing Businesses, net sales increased $77.3 million, or 18.0% compared to the prior year quarter. This increase in net sales was primarily due to increased unit shipments of fire apparatus and ambulances, a favorable mix of fire apparatus, and price realization, partially offset by an unfavorable mix of ambulance units. Specialty Vehicles segment backlog at the end of the fourth quarter 2025 was $4,402.3 million compared to $4,179.8 million at the end of the fourth quarter 2024. The increase was primarily the result of continued demand and order intake for fire apparatus and ambulance units, along with pricing actions, partially offset by increased production and shipments of fire apparatus and ambulance units.

Specialty Vehicles segment Adjusted EBITDA was $70.5 million in the fourth quarter 2025, an increase of $20.3 million, or 40.4%, from Adjusted EBITDA of $50.2 million in the fourth quarter 2024. Adjusted EBITDA for the fourth quarter 2024 included a $0.3 million loss attributable to the Bus Manufacturing Businesses. Excluding the impact of the Bus Manufacturing Businesses, Adjusted EBITDA increased $20.0 million, or 39.6%, compared to the prior year quarter. Profitability within the segment benefited from price realization, a favorable mix of fire apparatus, and increased shipments of fire apparatus and ambulance units, partially offset by inflationary pressures and an unfavorable mix of ambulance units.

Recreational Vehicles Segment Highlights

Recreational Vehicles segment net sales were $157.2 million in the fourth quarter 2025, a decrease of $0.9 million, or 0.6%, from $158.1 million in the fourth quarter 2024. The decrease in net sales compared to the prior year quarter was primarily due to lower shipments of Class A units, and increased dealer assistance in certain categories, partially offset by a favorable mix of diesel units. The Recreational Vehicles segment backlog at the end of the fourth quarter 2025 was $232.9 million, a decrease of $58.6 million compared to $291.5 million at the end of the fourth quarter 2024. The decrease was primarily the result of lower order intake in certain categories, and unit shipments against backlog.

Recreational Vehicles segment Adjusted EBITDA was $9.0 million in the fourth quarter 2025, an increase of $0.9 million, or 11.1%, from $8.1 million in the fourth quarter 2024. The increase was primarily due to actions taken to better align fixed and variable costs with end market demand, and a favorable mix of diesel units, partially offset by increased retail assistance in certain categories and inflationary pressures.

Working Capital, Liquidity and Capital Allocation

Cash and cash equivalents totaled $34.7 million as of October 31, 2025. Net debt was $5.3 million, and the company had $307.6 million available under its ABL revolving credit facility as of October 31, 2025. Free Cash Flow 4 for the full year 2025 was $190.0 million. Trade working capital 5 for the company as of October 31, 2025 was $161.3 million, compared to $248.2 million as of October 31, 2024. The decrease was primarily related to disciplined inventory management and an increase in customer advances. Capital expenditures in the fourth quarter 2025 were $23.2 million compared to $5.3 million in the fourth quarter 2024.

Quarterly Dividend

The company’s board of directors declared a quarterly cash dividend in the amount of $0.06 per share of common stock, payable on January 9, 2026, to shareholders of record on December 24, 2025, which equates to a rate of $0.24 per share of common stock on an annualized basis.

Conference Call

A conference call to discuss the company’s fiscal year 2025 and fourth quarter business and financial results is scheduled for December 10, 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.

________________________________________

1 Adjusted Net Income and Adjusted EBITDA are non-GAAP measures that are reconciled to their nearest GAAP measure later in this release.

2 Net Debt is defined as total debt less cash and cash equivalents Total debt was $40.0 million and cash and cash equivalents were $34.7 million as of October 31, 2025.

3 In fiscal 2024, the company exited bus manufacturing through the sale of Collins Bus Corporation (“Collins”) in the first quarter, and El Dorado National (California), Inc (“ENC”) in the fourth quarter. Collins and ENC are collectively referred to as the "Bus Manufacturing Businesses."

4 Free Cash Flow is defined as net cash from operating activities minus capital expenditures, and is reconciled to its nearest GAAP measure later in this release.

5 Trade Working Capital is defined as accounts receivable plus inventories less accounts payable and customer advances.

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 the United States, through two segments: Specialty Vehicles and Recreational Vehicles. The Specialty Vehicles Segment provides customized vehicle solutions for applications, including essential needs for public services (ambulances and fire apparatus) and commercial infrastructure (terminal trucks and industrial sweepers). REV Group’s Recreational Vehicle Segment manufactures a variety of RVs, from Class B vans to Class A motorhomes. REV Group's portfolio is made up of well-established principal vehicle brands, including many of the most recognizable names within their industry. REV Group trades on the NYSE under the symbol REVG. Investors-REVG

Note Regarding Non-GAAP Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that the evaluation of our ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow, which are non-GAAP financial measures. Adjusted EBITDA is defined as Net Income for the relevant period before depreciation and amortization, interest expense and income taxes, as adjusted for certain items that we believe are not indicative of our ongoing operating performance. Adjusted Net Income is defined as Net Income, as adjusted for certain items that we believe are not indicative of our ongoing operating performance. Free Cash Flow is calculated as net cash from operating activities minus capital expenditures.

The company believes that the use of Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow 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, Adjusted Net Income, and Free Cash Flow to the most closely comparable financial measures calculated in accordance with GAAP is included in the back 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.

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

CONSOLIDATED BALANCE SHEETS

(In millions, except share amounts)

October 31,

2025

October 31,

2024

ASSETS

Current assets:

Cash and cash equivalents

34.7

24.6

Accounts receivable, net

167.6

152.3

Inventories, net

527.1

602.8

Prepaid expenses and other current assets

48.3

26.8

Total current assets

777.7

806.5

Property, plant and equipment, net

157.7

130.2

Goodwill

137.7

Intangible assets, net

85.8

95.4

Right of use assets

20.4

32.1

Deferred income taxes

9.7

5.4

Other long-term assets

11.0

5.7

Total assets

1,200.0

1,213.0

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

194.8

188.8

Short-term customer advances

171.1

158.0

Accrued compensation

40.4

33.7

Short-term accrued warranty

25.7

20.0

Short-term lease obligations

5.1

7.3

Other current liabilities

78.2

61.5

Total current liabilities

515.3

469.3

Long-term debt

40.0

85.0

Long-term customer advances

167.5

160.1

Long-term lease obligations

16.1

25.7

Other long-term liabilities

44.8

37.8

Total liabilities

783.7

777.9

Commitments and contingencies

Shareholders' Equity:

Preferred stock ($.001 par value, 95,000,000 shares authorized; none issued or outstanding)

—

Common stock ($.001 par value, 605,000,000 shares authorized; 48,806,145 and 52,131,600 shares issued and outstanding, respectively)

0.1

Additional paid-in capital

215.4

316.5

Retained earnings

200.6

118.3

Accumulated other comprehensive income

0.2

Total shareholders' equity

416.3

435.1

Total liabilities and shareholders' equity

1,200.0

1,213.0

REV GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except share and per share amounts)

(Unaudited)

Three Months Ended

Twelve Months Ended

October 31,

2025

October 31,

2024

October 31,

2025

October 31,

2024

Net sales

664.4

597.9

2,463.5

2,380.2

Cost of sales

561.8

519.1

2,093.7

2,082.9

Gross profit

102.6

78.8

369.8

297.3

Operating expenses:

Selling, general and administrative

55.1

41.1

187.6

190.9

Restructuring

—

3.1

—

12.3

Impairment charges

—

14.5

Total operating expenses

55.1

44.2

187.6

217.7

Operating income

47.5

34.6

182.2

79.6

Interest expense, net

6.3

7.5

25.1

28.5

Loss (Gain) on sale of business

—

(28.9

)

39.6

(289.3

)

Income before provision for income taxes

41.2

56.0

117.5

340.4

Provision for income taxes

12.3

14.3

22.3

82.8

Net income

28.9

41.7

95.2

257.6

Net income per common share:

Basic

0.60

0.81

1.92

4.79

Diluted

0.59

0.80

1.89

4.72

Dividends declared per common share

0.06

0.05

0.24

3.20

Adjusted Net Income per common share:

Basic

0.84

0.52

2.73

1.62

Diluted

0.83

0.51

2.70

1.59

Weighted Average Shares Outstanding:

Basic

48,506,752

51,630,191

49,673,809

53,831,965

Diluted

49,319,435

52,407,926

50,373,853

54,625,379

REV GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Fiscal Year Ended

October 31,

2025

October 31,

2024

October 31,

2023

Cash flows from operating activities:

Net income

95.2

257.6

45.3

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

26.0

25.4

26.2

Stock-based compensation expense

12.3

12.7

14.4

Deferred income taxes

(17.7

)

(15.3

)

(12.8

)

Impairment charges

—

14.5

—

Net Loss (Gain) on sale of business

39.6

(289.3

)

1.1

Other non-cash adjustments

(1.2

)

0.3

0.8

Changes in operating assets and liabilities, net

Receivables, net

(17.4

)

64.2

(12.4

)

Inventories, net

57.9

26.3

(30.7

)

Other current assets

(21.5

)

0.6

(3.6

)

Accounts payable

5.0

(11.7

)

44.4

Accrued warranty

11.0

3.8

7.2

Customer advances

20.5

(39.3

)

24.6

Other liabilities

32.3

3.7

21.3

Long-term assets

(0.9

)

(0.1

)

0.7

Net cash provided by operating activities

241.1

53.4

126.5

Cash flows from investing activities:

Purchase of property, plant and equipment

(51.1

)

(27.6

)

(32.8

)

Proceeds from sale of assets

3.8

4.5

1.7

Proceeds from sale of businesses

—

371.6

0.6

Other investing activities

(3.0

)

—

0.6

Net cash (used in) provided by investing activities

(50.3

)

348.5

(29.9

)

Cash flows from financing activities:

Net payments from borrowings on revolving credit

(45.0

)

(65.0

)

(80.0

)

Payment of dividends

(12.9

)

(192.0

)

(12.1

)

Repurchase and retirement of common stock

(107.6

)

(126.1

)

—

Payments of withholding taxes for vesting of stock awards

(4.8

)

(11.5

)

(5.9

)

Other financing activities

(10.4

)

(4.0

)

2.3

Net cash used in financing activities

(180.7

)

(398.6

)

(95.7

)

Net increase in cash and cash equivalents

10.1

3.3

0.9

Cash and cash equivalents, beginning of year

24.6

21.3

20.4

Cash and cash equivalents, end of year

34.7

24.6

21.3

Supplemental disclosures of cash flow information:

Cash paid for interest

17.8

23.8

24.2

Cash paid for income taxes, net

44.5

108.3

8.8

Cash paid for operating lease liabilities

10.1

10.3

11.0

Operating right-of-use assets obtained

2.0

3.9

23.0

REV GROUP, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(In millions; unaudited)

Three Months Ended October 31,

Twelve Months Ended October 31,

2025

2024

2025

2024

Net Sales:

Specialty Vehicles

507.4

439.9

1,814.8

1,726.4

Recreational Vehicles

157.2

158.1

649.2

654.6

Corporate & Other

(0.2

)

(0.1

)

(0.5

)

(0.8

)

Total

664.4

597.9

2,463.5

2,380.2

Adjusted EBITDA:

Specialty Vehicles

70.5

50.2

226.6

154.5

Recreational Vehicles

9.0

8.1

37.2

41.2

Corporate & Other

(9.8

)

(8.7

)

(34.3

)

(32.9

)

Total

69.7

49.6

229.5

162.8

Adjusted EBITDA Margin:

Specialty Vehicles

13.9

11.4

12.5

8.9

Recreational Vehicles

5.7

5.1

5.7

6.3

Total

10.5

8.3

9.3

6.8

Increase (Decrease)

Period-End Backlog:

October 31,

2025

October 31,

2024

Specialty Vehicles

4,402.3

4,179.8

222.5

5.3

Recreational Vehicles

232.9

291.5

(58.6

)

-20.1

Total Backlog

4,635.2

4,471.3

163.9

3.7

REV GROUP, INC. AND SUBSIDIARIES

ADJUSTED EBITDA BY SEGMENT

(In millions; unaudited)

Three Months Ended October 31, 2025

Specialty Vehicles

Recreational Vehicles

Corporate & Other

Total

Net income (loss)

61.9

5.9

(38.9

)

28.9

Depreciation & amortization

4.4

2.1

1.4

7.9

Interest expense, net

4.2

—

2.1

6.3

Provision for income taxes

—

12.3

EBITDA

70.5

8.0

(23.1

)

55.4

Transaction expenses

—

6.8

Stock-based compensation expense

—

3.2

Legal and related matters

—

3.3

Other items

—

1.0

—

1.0

Adjusted EBITDA

70.5

9.0

(9.8

)

69.7

Three Months Ended October 31, 2024

Specialty Vehicles

Recreational Vehicles

Corporate & Other

Total

Net income (loss)

69.3

6.4

(34.0

)

41.7

Depreciation & amortization

3.9

1.6

0.5

6.0

Interest expense, net

3.2

0.1

4.2

7.5

Provision for income taxes

—

14.3

EBITDA

76.4

8.1

(15.0

)

69.5

Transaction expenses

—

1.0

Restructuring costs

2.7

—

0.4

3.1

Stock-based compensation expense

—

4.9

Gain on sale of business

(28.9

)

—

(28.9

)

Adjusted EBITDA

50.2

8.1

(8.7

)

49.6

REV GROUP, INC. AND SUBSIDIARIES

ADJUSTED EBITDA BY SEGMENT

(In millions; unaudited)

Twelve Months Ended October 31, 2025

Specialty Vehicles

Recreational Vehicles

Corporate & Other

Total

Net income (loss)

196.3

(7.4

)

(93.7

)

95.2

Depreciation & amortization

16.5

6.6

2.9

26.0

Interest expense, net

13.8

0.3

11.0

25.1

Provision for income taxes

—

22.3

EBITDA

226.6

(0.5

)

(57.5

)

168.6

Transaction expenses

—

7.3

Stock-based compensation expense

—

12.6

Legal and related matters

—

3.3

Net loss on sale of business and assets

—

36.7

—

36.7

Other items

—

1.0

—

1.0

Adjusted EBITDA

226.6

37.2

(34.3

)

229.5

Twelve Months Ended October 31, 2024

Specialty Vehicles

Recreational Vehicles

Corporate & Other

Total

Net income (loss)

382.0

32.3

(156.7

)

257.6

Depreciation & amortization

16.7

6.6

2.1

25.4

Interest expense, net

10.5

0.4

17.6

28.5

Provision for income taxes

—

82.8

EBITDA

409.2

39.3

(54.2

)

394.3

Transaction expenses

—

7.4

Sponsor expense reimbursement

—

0.2

Restructuring costs

11.9

—

0.4

12.3

Restructuring related charges

7.8

—

7.8

Impairment charges

12.6

1.9

—

14.5

Stock-based compensation expense

—

12.7

Legal and related matters

2.3

—

0.6

2.9

Gain on sale of business

(289.3

)

—

(289.3

)

Adjusted EBITDA

154.5

41.2

(32.9

)

162.8

REV GROUP, INC. AND SUBSIDIARIES

ADJUSTED NET INCOME

(In millions; unaudited)

Three Months Ended

October 31,

Twelve Months Ended

October 31,

2025

2024

2025

2024

Net income

28.9

41.7

95.2

257.6

Amortization of intangible assets

0.3

0.5

1.7

2.2

Transaction expenses

6.8

1.0

7.3

7.4

Sponsor expense reimbursement

—

0.2

Restructuring costs

—

3.1

—

12.3

Restructuring related charges

—

7.8

Impairment charges

—

14.5

Stock-based compensation expense

3.2

4.9

12.6

12.7

Legal and related matters

3.3

—

3.3

2.9

Net loss on sale of business and assets

—

(28.9

)

36.7

(289.3

)

Other items

1.0

—

1.0

—

Income tax effect of adjustments

(2.6

)

4.6

(22.0

)

58.8

Adjusted Net Income

40.9

26.9

135.8

87.1

REV GROUP, INC. AND SUBSIDIARIES

FREE CASH FLOW

(In millions; unaudited)

Twelve months ended

October 31, 2025

Net cash provided by operating activities

241.1

Less: Capital expenditures

(51.1

)

Free Cash Flow

190.0