Specialty vehicles maker REV Group Q3 sales beat estimates

Overview

• REV Group fiscal Q3 net sales rise, beating analyst expectations

• Adjusted EPS for fiscal Q3 beats estimates, driven by strong segment performance

• Company updates full-year fiscal 2025 guidance for net sales and adjusted EBITDA

Outlook

• Company updates full-year 2025 net sales guidance to $2.4-$2.45 bln

• REV Group raises 2025 net income guidance to $95-$108 mln

• Company expects 2025 adjusted EBITDA of $220-$230 mln

• REV Group projects 2025 free cash flow of $140-$150 mln

Result Drivers

• SPECIALTY VEHICLES - Increased shipments and favorable pricing for fire apparatus and ambulance units drove segment growth

• RECREATIONAL VEHICLES - Higher shipments of motorized units and pricing actions boosted segment sales

• BUSINESSES EXIT - Exiting Bus Manufacturing Businesses clarified growth in other segments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for REV Group Inc is $50.00, about 3.6% below its September 2 closing price of $51.80

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw9JTjp3a