REV Group Raises Guidance on Strong Q2
REV Group (NYSE:REVG) reported its fiscal 2025 second-quarter earnings on June 4, 2025, highlighting an 8% increase in consolidated mid-point revenue guidance and a 45% year-over-year hike in adjusted EBITDA guidance for fiscal 2025 driven by strong specialty vehicle operational gains. Management announced a $20 million plant expansion, a strategic portfolio exit, and raised capital expenditure plans, while also addressing approximately $15 million in tariff headwinds expected in the second half of the fiscal year and confirming a significant share repurchase program.The specialty vehicle segment, excluding the divested bus operations, delivered a 12.2% revenue increase and a 74.3% surge in adjusted EBITDA versus the prior year quarter, with the Spartan Emergency Response business segment achieving record shipment levels. Segment backlog reached $4.3 billion at quarter-end, driven by a book-to-bill ratio of 1.1, robust demand for fire apparatus, and productivity-focused capital investments, now including a $20 million expansion at the Brandon, South Dakota, plant.This persistent backlog and accelerating throughput support durable revenue visibility and margin expansion, positioning the business as a structural beneficiary of public safety capital spending and production optimization initiatives.Continue reading
REV Group (NYSE:REVG) reported its fiscal 2025 second-quarter earnings on June 4, 2025, highlighting an 8% increase in consolidated mid-point revenue guidance and a 45% year-over-year hike in adjusted EBITDA guidance for fiscal 2025 driven by strong specialty vehicle operational gains. Management announced a $20 million plant expansion, a strategic portfolio exit, and raised capital expenditure plans, while also addressing approximately $15 million in tariff headwinds expected in the second half of the fiscal year and confirming a significant share repurchase program.
The specialty vehicle segment, excluding the divested bus operations, delivered a 12.2% revenue increase and a 74.3% surge in adjusted EBITDA versus the prior year quarter, with the Spartan Emergency Response business segment achieving record shipment levels. Segment backlog reached $4.3 billion at quarter-end, driven by a book-to-bill ratio of 1.1, robust demand for fire apparatus, and productivity-focused capital investments, now including a $20 million expansion at the Brandon, South Dakota, plant.
This persistent backlog and accelerating throughput support durable revenue visibility and margin expansion, positioning the business as a structural beneficiary of public safety capital spending and production optimization initiatives.
