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Apr 30, 2022
REV Group Q2 2022 Earnings Report
Reported a net loss for the second quarter of 2022, impacted by supply chain challenges and restructuring charges, while backlog remained strong.
Key Takeaways
REV Group reported a decrease in net sales and a net loss for the second quarter of 2022, primarily due to supply chain disruptions and lower sales in the Fire and Emergency and Commercial segments. However, the company's backlog reached a record $3.6 billion, driven by strong order intake. The company updated its full-year fiscal 2022 outlook, reflecting ongoing supply chain challenges.
Net sales decreased to $576.3 million compared to $643.6 million in the prior year quarter.
Net loss was $2.3 million, compared to net income of $20.6 million in the prior year quarter.
Adjusted EBITDA was $23.8 million, compared to $45.5 million in the prior year quarter.
Record backlog of $3.6 billion driven by strong order intake.
REV Group
REV Group
REV Group Revenue by Segment
Revenue by Segment
Specialty Vehicles Revenue
CapyFin.comRecreational Vehicles Revenue
CapyFin.com Forward Guidance
The company updated its full-year fiscal 2022 outlook to net sales of $2.25 to $2.4 billion, net income of $14 to $35 million, Adjusted Net Income of $43 to $62 million, Free Cash Flow of $58 to $70 million, and Adjusted EBITDA of $100 to $120 million.
Positive Outlook
- Net Sales: $2.25 to $2.4 billion
- Net Income: $14 to $35 million
- Adjusted Net Income: $43 to $62 million
- Free Cash Flow: $58 to $70 million
- Adjusted EBITDA: $100 to $120 million
Challenges Ahead
- Supply chain challenges are expected to continue into calendar year 2023.
- Shortages of critical parts and chassis have negatively impacted performance.
- Lower net sales in the Fire and Emergency segment.
- Lower net sales in the Commercial segment.
- Net loss reported for the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income