- **Merger with Terex**: $10B+ combined entity set to close H1 2026, positioning for operational synergies and scale.
- **Record Financials**: FY25 EBITDA up 41% to $229.5M, free cash flow $190M, and 12.5% Specialty Vehicles margin.
- **Operational Excellence**: $58M inventory reduction, 2-year backlog duration, and 1.1x book-to-bill ratio.
- **Growth Drivers**: Secular demand in fire/emergency vehicles, Class C RV momentum, and $51M capital investments in automation.

**【CEO Summary Section】**
- Announced strategic merger with Terex Corporation, expected to close in H1 2026, creating a combined entity with $10B+ revenue and enhanced operational efficiency.
- FY25 revenue growth of 3.5% ($2.46B) driven by Specialty Vehicles segment, with adjusted EBITDA up 41% to $229.5M.
- Operational improvements: 12.5% Specialty Vehicles EBITDA margin (vs. 8.8% pro forma 2024), $58M inventory reduction, and 2-year backlog duration.
- Capital allocation: $121M returned to shareholders (dividends + buybacks) and $51M invested in automation, capacity expansion, and efficiency upgrades.
- FY25 free cash flow of $190M, net debt of $5.3M, and $34.7M cash on hand for merger integration.

**【CFO Financial Commentary】**
- **Specialty Vehicles Segment**: Q4 sales $507.4M (+18% YoY), EBITDA $70.5M (+39.6% YoY), 13.9% margin. Full year backlog $4.4B (+5.3% YoY), 1.1x book-to-bill ratio.
- **Recreational Vehicles Segment**: Q4 sales $157M (flat YoY), EBITDA $9M (+10% YoY). Backlog $233M (-20% YoY) due to dealer caution, but Class C demand strong.
- **Cash Flow**: FY25 operating cash flow $241M, free cash flow $190M (record). Capital expenditures $51M focused on automation and capacity.

**【Q&A Key Highlights】**
- **Specialty Vehicles Demand**: Order rates stable at 1.1x book-to-bill, driven by secular tailwinds in fire/emergency vehicles (municipal tax strength, aging fleets).
- **Tariff Impact**: No material competitive advantage vs. peers; cost mitigation via supplier diversification and lean practices.
- **Efficiency Progress**: Middle innings of operational improvement (7/9 innings), with further gains via automation and process simplification.
- **RV Market**: Class C demand strong (Renegade brand momentum), Class A lumpy, Class B challenged by retail assistance costs.
- **Capacity Investments**: Focused on aerial apparatus expansion (S-180) and robotics automation to reduce cycle times and improve quality.

REV Group, Inc. (REVG) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Q3 revenue up 20.5% YoY to $644.9M, driven by 24.6% Specialty Vehicles growth. FY25 guidance raised to $2.4-2.45B.
- **Profitability**: Adjusted EBITDA up 66% YoY to $64.1M. Specialty Vehicles margin expands to 13.4%.
- **Tariff Mitigation**: Q4 tariff impact $5-7M, but 28% incremental margin achieved vs. 20-25% guidance.
- **Capacity Expansion**: $20M South Dakota fire truck plant to add 40% capacity, targeting <1-year delivery times.
- **Cash Flow Strength**: Free Cash Flow guidance raised to $140-150M FY25, up $20M from prior.

**【CEO Opening Remarks】**
- Reported Q3 2025 revenue of $644.9 million, up 20.5% YoY (excluding divested bus business). Fire and Ambulance unit shipments increased 11% and 7% YoY, respectively.
- Highlighted operational improvements: 40% increase in fire apparatus production capacity via $20M South Dakota facility expansion, reducing delivery times to under 1 year.
- Raised FY25 guidance: Revenue $2.4-2.45B (up $50M), Adjusted EBITDA $220-230M (up $20M), Free Cash Flow $140-150M (up $20M).

**【CFO Financial Commentary】**
- Specialty Vehicles Segment: Q3 revenue $483.3M (+24.6% YoY), Adjusted EBITDA $64.6M (+13.4% margin). Tariffs expected to impact Q4 by $5-7M, but 28% incremental margin achieved vs. 20-25% guidance.
- Recreational Vehicles Segment: Q3 revenue $161.7M (+9.7% YoY), Adjusted EBITDA $8.1M (-13.8% YoY) due to Class B van dealer assistance and tariffs.
- Cash Flow: Q3 Operating Cash Flow $60.3M, Free Cash Flow $140-150M FY25 (vs. $100-120M prior).

**【Q&A Highlights】**
- **Tariff Impact**: CFO expects $5-7M Q4 impact, but 20-25% incremental margin guidance maintained. No price hikes for tariffs; focus on supply chain resourcing.
- **Backlog Management**: Fire/Ambulance backlog reduced 4% QoQ, targeting 11-13M delivery times by FY27. Throughput improvements driving faster order fulfillment.
- **Capital Deployment**: $117.6M returned to shareholders YTD (dividends + buybacks). Future focus on M&A, share buybacks, and dividend growth.
- **RV Segment Outlook**: FY25 RV revenue $625-650M, EBITDA $30-35M. Tariffs on luxury vans expected to ease in FY26.
- **Fire Truck Expansion**: South Dakota facility to add 56K sq ft, supporting 40% capacity increase. Phase 1 production starts Q4 2026, full ramp-up Q2 2027.

REV (REVG)-3 Sep 25-2025 Q3 Earnings call transcript

- **Revenue Growth**: Q2 revenue up 7.7% YoY, driven by Fire Group efficiency and modular ambulance units.
- **Tariff Mitigation**: $15M total impact in 2025H2, offset by production ramp and U.S. sourcing shifts.
- **CapEx Boost**: $20M investment in Brandon plant to expand S-180 production, targeting <1-year delivery times.
- **RV Performance**: Outperformed industry with 10% retail decline, 77% dealer inventory for '25/'26 models.
- **Guidance Update**: FY25 EBITDA $200-220M (+45% YoY), free cash flow $100-120M.

**【CEO Opening Remarks】**
- **Revenue Growth**: Q2 revenue reached $629.1M, up 7.7% YoY (excluding divested bus business). Fire Group shipments accelerated, driving top-line growth.
- **Operational Efficiency**: Fire Group achieved productivity parity with Ambulance Group, with modular ambulance units outpacing expectations. Lean principles reduced production cycle times.
- **Tariff Impact**: $5M impact on RV segment from imported Class B vans, $10M impact on Specialty Vehicles from non-chassis tariffs. Future purchases shifted to U.S. plants to mitigate exposure.
- **Business Optimization**: Exited non-motorized RV business (Lance Camper) to focus on scalable, higher-margin segments. Named Gary Gunter as President of RV segment, with Mike Lanciotti transitioning to advisory role.
- **Cash Flow & Share Repurchase**: Generated $117M in Q2 cash flow, repurchased 2.9M shares ($88M) under $250M authorization. Net debt $101.2M, with $263M available on ABL.
- **CapEx Increase**: Raised FY25 CapEx guidance to $45-50M, including $20M for Brandon, SD plant to expand S-180 production and custom apparatus capacity.

**【CFO Financial Highlights】**
- **Specialty Vehicles**: Q2 sales $453.9M (+12.2% YoY), EBITDA $56.3M (+74.3% YoY). Fire Apparatus shipments set post-acquisition highs, with 1.1 book-to-bill ratio. Backlog $4.3B, targeting shorter delivery times.
- **Recreational Vehicles**: Q2 sales $175.3M (-2.4% YoY), EBITDA $10.9M (-9.9% YoY). Outperformed industry with 10% retail decline vs. 13% industry drop. Backlog $268M, 77% of dealer inventory for '25/'26 models.
- **Tariff Impact**: FY25 Specialty Vehicles EBITDA expected to decline $10M from tariffs, reducing incremental margin to 20-25% (from 30-40%). RV segment faces $5M impact on Class B vans, limited to 2025H2.
- **Updated Guidance**: FY25 revenue $2.35-2.45B (+8% YoY), EBITDA $200-220M (+45% YoY). CapEx $45-50M, free cash flow $100-120M.

**【Q&A Key Takeaways】**
- **Tariff Timeline**: RV tariffs limited to 2025H2; Specialty Vehicles tariffs could impact 2026H1 before rolling off. S-180 production investments aim to offset headwinds.
- **S-180 Margins**: Comparable to custom trucks, with demand expanding to Ferrara and KME brands.
- **Dealer Inventory**: Class A/C healthy, Class B cautious. April saw first month-over-month retail increase in 28 months.
- **M&A Outlook**: Open to opportunistic acquisitions, prioritizing organic growth and share buybacks.


REV Group, Inc. (REVG) Q2 2025 Earnings Call Transcript

- **Record Q1 Performance**: Adjusted EBITDA up 21% YoY to $36.8M, driven by Specialty Vehicles (9.5% margin). Backlog of $4.5B supports long-term growth.
- **Fire Segment Strength**: Fire apparatus sales up 8.7% YoY, with operational improvements boosting margin by 470bps.
- **RV Resilience**: Tampa Show success hints at dealer destocking; 2025 guidance flat amid cautious market outlook.
- **Tariff Mitigation**: Limited direct exposure (2% of materials), but supply chain flexibility needed for uncertain impacts.
- **Share Buybacks**: $33M returned to shareholders in Q1, with $217M remaining for future repurchases.

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $525 million, with adjusted EBITDA of $36.8 million, a 21% increase YoY. Excluding divested bus businesses, organic revenue grew 3.1% and EBITDA rose 79%.
- Specialty Vehicle segment (fire and ambulance) drove growth, with Fire group achieving record performance. Recreational Vehicle (RV) segment faced market challenges but showed resilience at the Tampa RV Show.
- Backlog stands at $4.5 billion, providing 2-2.5 years of visibility. Share repurchases of $19.2 million (1% of shares) and $13.8 million post-quarter reflect confidence in long-term strategy.

**【CFO Financial Breakdown】**
- **Specialty Vehicles**: Q1 sales $370.2 million (+8.7% YoY, ex-bus). Adjusted EBITDA $35.2 million (116% YoY growth). Margin improved 470bps to 9.5%, driven by price realization and operational efficiency.
- **Recreational Vehicles**: Sales $155 million (-8.5% YoY). Adjusted EBITDA $9.2 million (-21% YoY) due to lower volumes and dealer assistance. Segment maintained 5.9% margin amid market softness.
- **Liquidity**: Net debt $108.4 million, with $262.9 million available on ABL. Q1 cash outflow $13.1 million, including $12 million in management incentives.

**【Q&A Highlights】**
- **Tariffs Impact**: Direct exposure limited (2% of materials from China/Mexico/Canada). Supply chain multi-sourcing mitigates risks, but full impact unclear. No significant repricing in backlog, but 2025 price increases buffer inflation.
- **RV Market**: Tampa Show success (higher retail sales) suggests dealer destocking progress. Guidance remains flat for 2025, pending sustained retail recovery.
- **Fire & Ambulance Pricing**: Mid-single to high-single-digit price increases expected. Ambulance contracts pass-through chassis costs; Fire trucks mostly purpose-built with domestic components.
- **Capital Allocation**: Share buybacks ($217M remaining) and disciplined M&A pipeline. No immediate M&A, but pipeline under development.

**【Guidance Reaffirmation】**
- **Specialty Vehicles**: High-single to low-double-digit revenue growth vs. 2024 pro forma ($1.56B). EBITDA $190-220M (+48% YoY at midpoint).
- **Recreational Vehicles**: Flat revenue and EBITDA vs. 2024. Full year net sales $2.3-2.4B (mid-single-digit growth).

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