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

REV Group (REVG) reported Q4 2025 results on Dec. 10, 2025, with revenue up 11.1% to $664.4M and EPS declining 26% to $0.59. The company exceeded revenue estimates but fell short on earnings. Management cited operational challenges and the pending Terex merger as reasons for withholding 2026 guidance.

Revenue

Total revenue surged 11.1% to $664.4 million, driven by robust performance in the Specialty Vehicles segment, which accounted for $507.4 million in sales—$67.5 million higher than the prior year. Recreational Vehicles contributed $157.2 million, though this segment saw a 0.6% year-over-year decline. The company attributed the overall growth to increased shipments of fire apparatus and ambulances, streamlined workflows, and lean manufacturing initiatives.

Earnings/Net Income

Earnings per share (EPS) fell 26% to $0.59, missing analyst expectations of $0.76. Net income dropped 30.7% to $28.9 million, reflecting higher operational costs and a challenging market environment. While revenue growth was strong, the EPS decline highlights margin pressures and underscores the need for continued cost discipline.

Price Action

Shares of REV Group gained 4.97% in the latest trading day and 12.93% month-to-date. However, post-earnings trading strategies over three years yielded mixed results, with a 63.70% cumulative return compared to the S&P 500’s 90.56% gain.

Post-Earnings Price Action Review

The strategy of buying REV Group shares after quarterly earnings and holding for 30 days showed inconsistent returns over three years. While the first quarter of 2023 delivered a 63.70% surge, subsequent quarters saw minimal gains or losses, such as a 0.04% return in Q2 2023 and a -1.38% decline in Q3 2023. Broader market trends, including the S&P 500’s strong performance, and the Transportation - Services industry’s poor 1-year return of -4.85% significantly influenced outcomes. The company’s merger with Terex and sector-specific challenges further complicated investor sentiment.

CEO Commentary

Mark Skonieczny, President and CEO, emphasized operational improvements in Specialty Vehicles and Recreational Vehicles, noting “increased throughput and shipments” and a $58 million reduction in operating inventory. He highlighted the pending merger with Terex, expected to close in H1 2026, as a strategic move to enhance scale and shareholder returns. Skonieczny expressed confidence in the company’s ability to maintain margin expansion and operational efficiency, despite macroeconomic headwinds.

Guidance

Management declined to provide fiscal 2026 guidance, citing the uncertainty surrounding the Terex merger. However, the CEO noted that the company’s adjusted EBITDA margin of 10.5% in Q4 2025 exceeded the low end of its 10%-12% target range for 2027. The Specialty Vehicles segment’s backlog of $4.4 billion and strong cash flow position were cited as positive indicators for future performance.

Additional News

1. M&A Activity: REV Group announced a strategic merger with Terex Corporation, expected to close in H1 2026. The deal aims to combine operational synergies and enhance market positioning.

2. C-Level Changes: Mark Skonieczny reaffirmed his leadership role, emphasizing the company’s focus on operational excellence and shareholder returns.

3. Capital Allocation: The company returned $120.5 million to shareholders via share repurchases and dividends in fiscal 2025, reflecting strong free cash flow generation.

Final Notes

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