REV Group, Inc.

REV Group reported third-quarter fiscal 2025 net sales of $644.9 million versus $579.4 million in the prior-year quarter. Excluding the exited ENC transit bus business, sales increased $109.7 million, or 20.5%, year over year. Consolidated adjusted EBITDA was $64.1 million versus $45.2 million a year ago; excluding the prior-year bus contribution, adjusted EBITDA increased $25.5 million, or 66.1%. Specialty Vehicles sales were $483.3 million, up $51.2 million, or 11.8%, and adjusted EBITDA was $64.6 million with a 13.4% margin, up 370 basis points from pro forma 2024. Recreational Vehicle sales were $161.7 million, up $14.3 million, or 9.7%, and adjusted EBITDA was $8.1 million, down $1.3 million, or 13.8%. Backlog exited at $4.3 billion for Specialty Vehicles and $224 million for RV. Cash from operating activities was $60.3 million in the quarter and $164.7 million year to date; capital expenditures were $11.6 million; net debt was $54 million, including $36 million of cash. Full-year guidance was raised to revenue of $2.4 billion to $2.45 billion, adjusted EBITDA of $220 million to $230 million, net income of $95 million to $108 million, adjusted net income of $107 million to $138 million, capex of $45 million to $50 million, interest expense of $24 million to $26 million, and free cash flow of $140 million to $150 million. RV full-year guidance was left unchanged at revenue of $625 million to $650 million and adjusted EBITDA of $30 million to $35 million.

The CEO framed the quarter as evidence that REV’s multi-year operational transformation is working, emphasizing improved manufacturing throughput, quality, efficiency, and cash conversion. He highlighted the South Dakota Spartan expansion, saying the roughly $20 million investment should expand fire apparatus capacity by 40% and support faster delivery times, while also creating 50 jobs. His tone was confident and constructive, but he stressed continued work ahead to normalize lead times and keep improving productivity.

The CFO focused on the financial leverage from higher throughput, stating Specialty Vehicles adjusted EBITDA margin was 13.4% and that third-quarter incremental margin was 28%, ahead of prior guidance of 20% to 25% because inventory and supply-chain actions helped offset tariff costs. She said the company expects $5 million to $7 million of tariff-related headwinds in Q4, with Specialty Vehicles revenue guidance for Q4 of low single-digit sequential growth and mid-teens growth year over year versus pro forma 2024. She also detailed strong liquidity and cash allocation: trade working capital fell to $191.6 million, operating cash flow was $60.3 million in the quarter, year-to-date free cash flow guidance was raised to $140 million to $150 million, and the company had about $247.2 million available under its ABL revolver.

Analysts focused on whether margins are ahead of schedule versus the company’s 2027 targets, the timing and persistence of tariff impacts into 2026, and how pricing is being handled in fire and ambulance. Management said it remains on the expected trajectory for its intermediate targets, that tariff pressure will be most visible in Q4 and likely carry into early 2026, and that it is using a mix of pricing, resourcing, and internal productivity gains rather than a tariff-specific price hike. Questions also probed the backlog and South Dakota expansion; management clarified that the 4% decline referenced months-to-deliver, not units, and said the facility expansion is phased, with meaningful materialization beginning in 2027.