REV Group 2025 Q4 Earnings Revenue Rises 11.1% but EPS Falls 26%

REV Group (REVG) reported Q4 2025 earnings on Dec. 10, 2025, with revenue rising 11.1% to $664.4 million but net income declining 30.7% to $28.9 million. The stock gained 4.97% in the latest session, though post-earnings trading strategies showed mixed results. The company declined to provide 2026 guidance due to its pending Terex merger.

Revenue

REV Group’s total revenue grew 11.1% year-over-year to $664.4 million in Q4 2025, driven by strong performance in the Specialty Vehicles segment, which generated $507.4 million in sales. Recreational Vehicles contributed $157.2 million, while the Corporate & Other segment reported a minor loss of $0.2 million. The company attributed the growth to increased shipments of fire apparatus and ambulances, alongside operational improvements in production efficiency and inventory management.

Earnings/Net Income

Earnings per share (EPS) fell 26% to $0.59 in Q4 2025 from $0.80 in the prior-year period, while net income dropped to $28.9 million, a 30.7% decline. Despite higher revenue, margin pressures and cost challenges in the Recreational Vehicles segment offset gains. The EPS result fell short of Wall Street expectations, reflecting broader industry headwinds and integration uncertainties ahead of the Terex merger.

Post-Earnings Price Action Review

The strategy of buying REV Group shares post-earnings and holding for 30 days showed inconsistent returns over three years, with an annualized 16.18% average return but significant volatility. Strong gains followed Q1 2023 results (63.70% in 30 days), but subsequent quarters saw mixed performance, including a -1.38% return in Q3 2025. The Transportation - Services sector’s weak performance (-4.85% 1-year return) and the S&P 500’s 90.56% cumulative gain over the same period further complicated the strategy’s effectiveness.

CEO Commentary

CEO Mark Skonieczny highlighted operational progress in Specialty Vehicles, including lean practices and inventory reductions, which drove adjusted EBITDA margins above 2027 targets. He emphasized disciplined cost management in Recreational Vehicles and strategic automation investments. Skonieczny expressed optimism about the Terex merger, calling it a “unique opportunity” for scale and long-term value, while reiterating strong free cash flow ($190 million) and shareholder returns ($121 million via buybacks/dividends).

Guidance

REV Group withheld fiscal 2026 guidance due to the pending Terex merger but reported full-year 2025 adjusted EBITDA of $229.5 million (up 41% YoY). The company plans $51.1 million in 2025 capital expenditures for facility upgrades and automation. CFO Amy Campbell noted normalization in Specialty Vehicles demand but ongoing challenges in the RV segment.

Additional News

The pending merger with Terex Corporation remains a focal point, with the preliminary S-4 filed and expected closure in H1 2026. CEO Mark Skonieczny described the deal as a “thoughtful, deliberate process” to create operational synergies while minimizing execution risk. Shareholder returns accelerated in 2025, with $121 million returned via buybacks and dividends. The company also reduced operating inventory by $58 million and invested in facility upgrades to enhance production capacity.