REV Group 2025 Q3 Earnings Strong Performance as Net Income Surges 61.7%

REV Group (REVG) reported its fiscal 2025 Q3 earnings on Sep 03rd, 2025, delivering results that exceeded expectations and raised full-year guidance. The company beat on both top and bottom lines, with revenue rising 11.3% year-over-year and net income growing 61.7%. REV Group raised its fiscal 2025 revenue and EBITDA forecasts, signaling confidence in sustained momentum driven by operational improvements and strategic initiatives.

Revenue
REV Group's fiscal 2025 Q3 revenue reached $644.90 million, a 11.3% increase compared to $579.40 million in the same period last year. The Specialty Vehicles segment remained the core growth engine, generating $483.30 million in revenue, while the Recreational Vehicles segment added $161.70 million. The Corporate, Other & Elims segment reported a negative $100,000, reflecting adjustments and eliminations typical in consolidated reporting. Overall, the results underscore the company’s strong performance across key business units.

Earnings/Net Income
REV Group’s earnings showed robust growth, with earnings per share (EPS) climbing 71.4% to $0.60 in Q3 2025 from $0.35 in Q3 2024. Net income also surged to $29.10 million, up 61.7% from $18.00 million in the prior-year period. The impressive earnings growth highlights the company’s improved operational efficiency and effective cost management, translating into higher profitability for shareholders.

Price Action
Despite the strong earnings report, the stock price of REV Group experienced mixed short-term trading dynamics. During the latest trading day, shares dropped by 7.03%, but over the most recent full trading week, they rose by 7.86%. On a month-to-date basis, the stock has gained 20.57%, suggesting that investor sentiment is gradually aligning with the company’s strong fundamentals.

Post-Earnings Price Action Review
Following the earnings release, the stock initially faced some short-term volatility, as evidenced by the 7.03% intraday decline. However, the broader weekly and monthly trends remain positive, with the stock gaining 7.86% over the past week and 20.57% month-to-date. The market appears to be digesting the strong earnings results and optimistic guidance, which could lead to further upward momentum in the coming weeks as analysts and investors adjust their expectations.

CEO Commentary
Mark Skonieczny, CEO of REV Group, highlighted the sustained operational improvements that are driving the company’s strong performance. He noted a 11% and 7% year-over-year increase in fire and ambulance unit shipments, respectively, underscoring the effectiveness of lean manufacturing, workforce training, and process innovations. The CEO also emphasized the strategic investment of $20 million in a South Dakota facility, which is expected to boost production capacity by 40% and support timely deliveries for first responders. Skonieczny expressed optimism about the company’s future growth trajectory and ability to scale efficiently while maintaining quality and customer satisfaction. He also pointed to the successful divestiture of the Lance Camper business and a strategic focus on motorized RVs, which he believes are well-positioned for continued success due to strong dealer networks and innovation.

Guidance
REV Group has raised its fiscal 2025 guidance, projecting consolidated revenue of $2.4 billion to $2.45 billion and adjusted EBITDA of $220 million to $230 million. The Specialty Vehicle segment is expected to achieve mid-teens revenue growth for the year, with full-year adjusted EBITDA in the range of $220 million to $230 million, representing a 55% increase compared to fiscal 2024. The Recreational Vehicle segment is forecasted to generate revenue between $625 million and $650 million, with adjusted EBITDA expected to fall between $30 million and $35 million. Free cash flow guidance was also raised to $140 million to $150 million, reflecting strong cash generation and increased capital expenditures.

Additional News
Recent Nigerian news has highlighted a sharp increase in non-oil revenue, which rose 40% year-on-year to N20.6 trillion according to the presidency. President Bola Tinubu credited his reforms for restoring Nigeria's global respect, while the country’s health sector received a boost with the announcement of mandatory health insurance across federal government MDAs. In the private sector, the Dangote Group denied ownership of a truck involved in a fatal accident in Enugu, while the EFCC arrested a CEO for a failed N2 billion investment scheme. Additionally, over 2,000 doctors remain owed salaries, leading the Nigerian Association of Resident Doctors (NARD) to insist on continuing their strike.