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Jul 31, 2024

REV Group Q3 2024 Earnings Report

Reported strong third quarter results and updated fiscal 2024 outlook.

Key Takeaways

REV Group reported a net sales of $579.4 million, net income of $18.0 million, and Adjusted EBITDA of $45.2 million for the third quarter. The Specialty Vehicles segment delivered double-digit Adjusted EBITDA margin performance, while the Recreational Vehicles segment managed operating margins in line with expectations amid challenging market conditions.

Net sales for the third quarter were $579.4 million, compared to $680.0 million in the prior year quarter.

Net income for the third quarter was $18.0 million, compared to $14.9 million in the prior year quarter.

Adjusted EBITDA for the third quarter was $45.2 million, compared to $39.4 million in the prior year quarter.

The company updated its full-year fiscal 2024 outlook, projecting net sales of $2.35 to $2.45 billion, net income of $226.0 to $240.0 million, and Adjusted EBITDA of $155.0 to $165.0 million.

Total Revenue
$579M
Previous year: $680M
-14.8%
EPS
$0.48
Previous year: $0.35
+37.1%
Adjusted EBITDA
$45.2M
Previous year: $39.4M
+14.7%
Fire & Emergency Adj. EBITDA
$44.3M
Recreation Adj. EBITDA
$9.4M
Gross Profit
$78.3M
Previous year: $80.2M
-2.4%
Cash and Equivalents
$50.5M
Previous year: $11M
+359.1%
Free Cash Flow
$8.5M
Previous year: $56.1M
-84.8%
Total Assets
$1.33B
Previous year: $1.38B
-3.2%

REV Group

REV Group

REV Group Revenue by Segment

Forward Guidance

The company updated its full-year fiscal 2024 outlook with net sales of $2.35 to $2.45 billion, net income of $226.0 to $240.0 million, Adjusted EBITDA of $155.0 to $165.0 million, and Adjusted Net Income of $76.0 to $89.0 million.

Positive Outlook

  • Net sales of $2.35 to $2.45 billion
  • Net income of $226.0 to $240.0 million
  • Adjusted EBITDA of $155.0 to $165.0 million
  • Adjusted Net Income of $76.0 to $89.0 million
  • Net cash from operating activities of $20.0 to $36.0 million

Challenges Ahead

  • Includes approximately $71.0 million of income tax and transaction costs related to divestiture activities
  • Challenging market conditions in the Recreational Vehicles segment
  • Lower net sales in the Recreational Vehicles segment
  • Lower shipments of terminal trucks in Specialty Vehicles segment
  • Decrease in customer advances and accounts payable

Revenue & Expenses

Visualization of income flow from segment revenue to net income