REV Group 2025 Q2 Earnings Beats Expectations as Net Income Climbs 25%

REV Group (REVG) reported its fiscal 2025 Q2 earnings on June 4th, 2025. The total revenue of REV Group increased by 2.0% to $629.10 million in 2025 Q2, up from $616.90 million in 2024 Q2. REV Group exceeded market expectations with a 25% increase in net income and a 31% rise in EPS compared to fiscal 2024 Q2. The company raised its fiscal 2025 guidance, projecting consolidated revenue between $2.35 billion and $2.45 billion, reflecting an 8% increase from the previous year. Adjusted EBITDA guidance is set at $200 million to $220 million, with net income projected between $88 million and $107 million.

Revenue
REV Group reported an increase in total revenue to $629.10 million for fiscal 2025 Q2, marking a 2.0% rise from the previous year's Q2 revenue of $616.90 million. The Specialty Vehicles segment contributed significantly, generating $453.90 million, while the Recreational Vehicles segment added $175.30 million. The company's overall sales performance showcases positive growth dynamics across its key business segments.

Earnings/Net Income
REV Group's EPS rose 31.0% to $0.38 in 2025 Q2 from $0.29 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $19 million in 2025 Q2, marking 25.0% growth from $15.20 million in 2024 Q2. The EPS performance indicates strong financial health and promising future prospects.

Post-Earnings Price Action Review
The strategy of buying REVG stock after a revenue beat and holding for 30 days has yielded impressive results, delivering a 469.85% return, significantly outperforming the benchmark. Despite a maximum drawdown of -41.49%, the strategy demonstrated a Sharpe ratio of 0.77, indicative of favorable risk-adjusted returns. However, with a volatility of 54.55% and a CAGR of 41.90%, the strategy entailed moderate risk and demonstrated steady growth over the backtested period. The resilience of the strategy underscores its effectiveness in capitalizing on positive earnings results, making it a viable option for investors seeking enhanced returns in the specialty vehicle sector.

CEO Commentary
Mark A. Skonieczny, President and CEO, highlighted the strong second quarter performance driven by increased manufacturing throughput in the Fire Group, with a nearly 30% production increase in Fire & Emergency vehicles over the past two fiscal years. He emphasized the benefits of operational transformation and efficiency programs, stating, “The trajectory we've established has provided us with a solid foundation for sustainable growth.” Skonieczny noted the strategic decision to exit the non-motorized travel trailer business to focus on scalable operations and profitability. He expressed optimism about the future, asserting that ongoing investments in people, equipment, and innovation will further drive the company's success.

Guidance
REV Group updated its fiscal 2025 guidance, projecting consolidated revenue between $2.35 billion and $2.45 billion, reflecting an 8% increase from the previous year. The Specialty Vehicles segment is expected to achieve low-double-digit revenue growth, while the Recreational Vehicles segment revenue is anticipated to range from $625 million to $650 million. Adjusted EBITDA guidance is now set at $200 million to $220 million, with net income projected between $88 million and $107 million. Capital expenditures are raised to $45 million to $50 million to support increased production and operational efficiency.

Additional News
In recent non-earnings news, REV Group announced a strategic decision to divest its non-motorized Lance Camper operation, citing subscale economics and geographic dislocation from RV centers. This move aligns with the company's focus on scalable operations and stronger competitive positioning. Additionally, REV Group repurchased approximately 2.9 million shares for $88 million, reflecting confidence in its financial position and commitment to shareholder value creation. The company also addressed tariff impacts, estimating a $15 million effect on adjusted EBITDA in the second half of the fiscal year, while proactively shifting chassis sourcing to U.S. suppliers to mitigate exposure.