REV Group (REVG) Surges 12.59% on Strong Q2 Earnings, Guidance Hike, Spartan Expansion

REV Group Inc. (REVG) surged 12.59% on Tuesday, with its share price reaching a peak not seen since September 2025, marked by an intraday rally of 22.36%. The sharp upward movement reflects investor confidence in the company’s recent operational and financial strides.

Strong second-quarter results underpinned the stock’s momentum, with revenue climbing 11.3% year-on-year to $644.9 million, outpacing estimates by 5%. Adjusted earnings per share (EPS) of $0.79 surpassed forecasts by 24.7%, while adjusted EBITDA hit $64.1 million, a 22.6% beat. The company raised full-year revenue guidance to $2.43 billion and projected adjusted EBITDA of $225 million, signaling optimism in sustained demand and execution capabilities.

A $20 million investment in Spartan Emergency Response, a REV Group subsidiary, further fueled enthusiasm. The expansion is set to boost production capacity by 40%, create 50 jobs, and strengthen the firm’s position in high-demand sectors like emergency vehicles. Analysts highlight the move as a strategic lever to address backlogs and enhance delivery timelines, reinforcing long-term growth prospects.

Broader market dynamics also played a role. A dovish Federal Reserve outlook eased concerns over high borrowing costs, benefiting capital-intensive industries. REV Group’s financial metrics, including a 8.8% operating margin and a debt-to-equity ratio of 0.43, underscore its disciplined capital structure and operational efficiency. Share repurchases totaling $107.6 million further reflect management’s confidence in the stock’s value.

Investors will closely watch the upcoming Q3 earnings report, expected to provide clarity on the Spartan expansion’s progress and potential guidance updates. With a $4.5 billion backlog and a 31.1% projected EPS growth for 2025, the company appears well-positioned to sustain its upward trajectory, though macroeconomic volatility and sector cyclicality remain watchpoints.