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REV Group
🇺🇸 NYSE:REVG
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•
Jan 31, 2024

REV Group Q1 2024 Earnings Report

Reported strong first quarter results and provided updated fiscal 2024 outlook.

Key Takeaways

REV Group reported a strong first quarter with net sales of $586.0 million and net income of $182.7 million, driven by pricing actions and operational improvements in the Specialty Vehicles segment. The company has updated its full-year fiscal 2024 outlook, projecting net sales between $2.45 and $2.55 billion and adjusted EBITDA between $145.0 and $165.0 million.

Net sales increased to $586.0 million compared to $583.5 million in the prior year quarter.

Net income was $182.7 million, a significant increase from the net loss of $13.5 million in the prior year quarter, including a gain on sale of Collins Bus.

Adjusted EBITDA increased to $30.5 million compared to $21.3 million in the prior year quarter.

The company completed the sale of Collins Bus Corporation and announced the discontinuation of manufacturing operations at its ElDorado National (California) facility.

Total Revenue
$586M
Previous year: $584M
+0.4%
EPS
$0.25
Previous year: $0.12
+108.3%
Adjusted EBITDA
$30.5M
Previous year: $21.3M
+43.2%
Gross Profit
$62.9M
Previous year: $57.9M
+8.6%
Cash and Equivalents
$87.9M
Previous year: $23M
+282.2%
Free Cash Flow
-$80.2M
Previous year: -$10.7M
+649.5%
Total Assets
$1.42B
Previous year: $1.4B
+1.4%

REV Group

REV Group

REV Group Revenue by Segment

Forward Guidance

REV Group adjusts its full-year fiscal 2024 outlook with net sales between $2.45 to $2.55 billion, net income of $224.0 to $245.0 million, Adjusted EBITDA of $145.0 to $165.0 million, and Adjusted Net Income of $72.0 to $90.0 million.

Positive Outlook

  • Net sales are projected to be between $2.45 billion and $2.55 billion.
  • Net income is expected to be between $224.0 million and $245.0 million.
  • Adjusted EBITDA is anticipated to be between $145.0 million and $165.0 million.
  • Adjusted Net Income is forecasted to be between $72.0 million and $90.0 million.
  • Net cash from operating activities is projected to be between $16.0 million and $36.0 million.

Challenges Ahead

  • Net cash from operating activities includes approximately $71.0 million of income tax and transaction costs related to divestiture activities.
  • The wind down of ENC’s manufacturing operations is expected to be substantially completed by the end of fiscal year 2024.
  • Lower net sales in the Recreational Vehicles segment negatively impacted consolidated net sales.
  • Inflationary pressures and increased discounting affected the Recreational Vehicles segment.
  • The company used a portion of the proceeds from the sale of Collins to reduce outstanding borrowings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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