REV Group, Inc. (NYSE:REVG) reported fourth-quarter results on Tuesday that came in ahead of Wall Street expectations, with adjusted earnings per share of $0.83 surpassing forecasts by $0.07 and revenue of $664.4 million beating the consensus estimate of $645.35 million.
Following the announcement, shares ticked up 0.70% in premarket trading.
The manufacturer of specialty and recreational vehicles recorded a 13% year-over-year increase in net sales after adjusting for divested bus operations. Growth was led by the Specialty Vehicles division, where sales climbed 15.3% to $507.4 million. That strength helped offset a modest 0.6% decline in the Recreational Vehicles segment.
Adjusted EBITDA came in at $69.7 million for the quarter, up 40.5% from $49.6 million in the same period last year. Net income totaled $28.9 million, or $0.59 per diluted share, compared with $41.7 million, or $0.80 per share, a year ago.
“This has been a year of significant operational, financial and organizational change, and the team delivered exceptionally well,” said President and CEO Mark Skonieczny. “We improved efficiency and throughput, and saw strong execution from our supply chain group, which helped us manage costs effectively.”
For fiscal 2025, REV Group generated $2.46 billion in net sales and $229.5 million in adjusted EBITDA. The company ended the year in a solid financial position with only $5.3 million in net debt and $241.1 million in cash from operating activities.
The order backlog remained strong at $4.64 billion, rising 3.7% from the prior year. Specialty Vehicles backlog increased 5.3% to $4.40 billion, while the Recreational Vehicles backlog fell 20.1% to $232.9 million.
REV Group’s board declared a quarterly dividend of $0.06 per share, payable January 9, 2026. The company also reaffirmed that its proposed strategic merger with Terex Corporation, first announced in October, is on schedule to close during the first half of 2026.