REV Group, Inc. (NYSE:REVG) delivered solid second-quarter results on Wednesday, beating Wall Street estimates and lifting its full-year outlook – sending its stock up 2.47% in premarket trading.
The manufacturer of specialty vehicles posted adjusted earnings of $0.70 per share, outperforming analyst expectations of $0.55. Quarterly revenue climbed 2% year-over-year to $629.1 million, comfortably above the $603.5 million consensus estimate.
CEO Mark Skonieczny credited the quarter’s success to operational efficiency gains, particularly within the fire apparatus division. “We are pleased that the second quarter’s performance continued to build upon our recent achievements,” said REV Group CEO Mark Skonieczny. “The standout this quarter was the sustained year-over-year increase in manufacturing throughput within the fire group, which played a pivotal role in driving our top-line growth.”
Excluding the divested bus businesses, net sales rose 7.7% compared to the same quarter last year. The Specialty Vehicles segment led the charge, offsetting softer performance in Recreational Vehicles.
Adjusted EBITDA surged to $58.9 million, up from $37.5 million a year earlier, underscoring improved profitability. The company also returned capital to shareholders, buying back around 2.9 million shares for $88.4 million during the quarter.
In light of the strong performance, REV Group raised its fiscal 2025 revenue forecast to between $2.35 billion and $2.45 billion, compared to a prior range of $2.3 billion to $2.4 billion. The new guidance surpasses the $2.38 billion consensus and reflects continued demand for the company’s products alongside better manufacturing execution.
With operational improvements taking hold and demand staying resilient across its key markets, REV Group appears well-positioned to maintain its growth trajectory through the remainder of the year.