REV Group 2025 Q4 Earnings Beats Estimates Despite EPS Decline

REV Group (REVG) reported Q4 2025 results that exceeded revenue expectations and demonstrated margin expansion, though earnings per share declined year-over-year. The company did not provide fiscal 2026 guidance due to its pending merger with Terex.

Revenue

REV Group’s Q4 revenue surged 11.1% to $664.4 million, outpacing the $645.35 million consensus estimate. The Specialty Vehicles segment, which includes fire apparatus and ambulances, drove growth with $507.4 million in sales, a 15.3% increase from 2024. Recreational Vehicles revenue stood at $157.2 million, down 0.6% year-over-year.

Earnings/Net Income

Despite robust revenue growth, EPS fell 26.0% to $0.59 in Q4 2025, compared to $0.80 in Q4 2024. Net income dropped 30.7% to $28.9 million. While margin expansion and cost controls supported profitability, the EPS decline reflects broader industry and market challenges.

Post-Earnings Price Action Review

The strategy of buying REV Group shares post-earnings and holding for 30 days showed mixed results over three years. Annualized returns averaged 16.18%, with a cumulative 63.70% gain, but lagged the S&P 500’s 90.56% return. Strong performance followed Q1 2023 (63.70% return), but subsequent quarters saw volatility, including a -1.38% return in Q3 2025. The Transportation - Services sector’s weak 3-year return (-39.54%) and Q4’s 10.5% adjusted EBITDA margin highlighted sector-specific pressures.

CEO Commentary

CEO Mark Skonieczny emphasized operational progress, including a 13.9% Q4 EBITDA margin for Specialty Vehicles, exceeding 2027 guidance. He highlighted the pending Terex merger as a transformative opportunity, with integration expected to close in H1 2026. Strategic priorities include automation, supply chain optimization, and $121 million in shareholder returns via buybacks and dividends.

Guidance

For fiscal 2025, REV Group achieved $2.46 billion in net sales and $229.5 million in adjusted EBITDA, with a 9.3% margin. The company declined to provide 2026 guidance but noted a $4.4 billion backlog and $51.1 million in capital expenditures for fiscal 2025.

Additional News

1. M&A Activity: REV Group’s $3.5 billion merger with Terex, expected to close in H1 2026, aims to enhance scale and operational synergies.

2. Operational Upgrades: $23.2 million in Q4 capital expenditures focused on automation and facility investments to boost efficiency.

3. Shareholder Returns: The company returned $121 million to shareholders in 2025 through buybacks and dividends, signaling disciplined capital allocation.