REV Group (REVG) AI Stock Analysis

• Market Cap: $3.05B
• Dividend Yield: 0.39%
• Average Volume (3M): 722.58K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.45
• Revenue Growth: 3.50%
• EPS Growth: -57.51%
• Country: US
• Employees: 5,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 48,806,145
• 10 Day Avg. Volume: 481,270
• 30 Day Avg. Volume: 722,579
• PEG Ratio: -0.45
• Price to Book (P/B): 6.12
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 13.40
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 7.17
• Enterprise Value/Ebitda: 13.58
• 1Y Price Target: $61.00
• Price Target Upside: -2.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.67
• Revenue Forecast (FY): $2.65B

• Rating: 74 Outperform
• Price Target: $66.00 ▲(5.52% Upside)

REV Group's overall stock score reflects a strong earnings call and solid financial performance, despite some valuation concerns and technical indicators suggesting caution. The company's strategic investments and raised guidance are positive, but challenges in the RV segment and tariff impacts need monitoring.

Positive Factors

Revenue Growth

A 20.5% increase in net sales reflects strong demand and effective business strategies, indicating robust market position and growth potential.

Strategic Investments

Investing in facility expansion enhances production capabilities, supporting long-term growth and competitiveness in the fire apparatus market.

Merger with Terex

The merger with Terex will create a diversified leader in specialty equipment, enhancing operational scale and unlocking significant synergies.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate challenges in cost management and pricing power, potentially impacting long-term profitability.

Negative Free Cash Flow Growth

Negative free cash flow growth limits the ability to fund future investments and may constrain financial flexibility over time.

RV Segment Challenges

Challenges in the RV segment, including tariff impacts, could hinder growth and profitability in this market segment.

REV Group Business Overview & Revenue Model

Company Description

REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, and Ladder Tower brands; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brands. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Capacity, ENC, and Lay-Mor brands. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade, Midwest, and Lance brands; and produces a range of custom molded fiberglass products for the heavy-duty truck, RV, and broader industrial markets. The company sells its products to municipalities, government agencies, private contractors, consumers, and industrial and commercial end users through its direct sales force or dealer network. The company was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. REV Group, Inc. is based in Brookfield, Wisconsin.

How the Company Makes Money

REV Group generates revenue primarily through the sale of its specialty vehicles, which includes a wide range of products tailored for different markets, such as fire and emergency services, commercial transport, and recreational activities. Key revenue streams include vehicle sales, aftermarket parts and services, and customization options for its vehicles. The company also benefits from long-term contracts and relationships with municipalities, government agencies, and commercial fleets, which provide a consistent demand for its products. Additionally, strategic partnerships with suppliers and industry stakeholders enhance its market reach and operational efficiency, contributing to its overall earnings.

REV Group Financial Statement Overview

Summary

REV Group shows a solid financial position with strong revenue growth and improved cost management. The reduction in leverage and strong return on equity enhance financial stability. However, declining profit margins and negative free cash flow growth pose challenges that need addressing to sustain long-term growth.

Income Statement

REV Group has demonstrated consistent revenue growth, with a 2.77% increase in the latest year. The gross profit margin has improved to 15.01%, indicating better cost management. However, the net profit margin decreased to 3.86% from the previous year, suggesting challenges in maintaining profitability. The EBIT and EBITDA margins have also shown a decline, which could be a concern for operational efficiency.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.13, reflecting improved financial stability and lower leverage risk. The return on equity is strong at 22.87%, indicating effective use of shareholder funds. The equity ratio stands at 34.69%, suggesting a healthy balance between debt and equity financing.

Cash Flow

Operating cash flow has increased substantially, enhancing the company's ability to cover its net income. However, free cash flow growth is negative at -4.81%, which could impact future investments. The free cash flow to net income ratio is robust at 78.81%, indicating good cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.40B	2.46B	2.38B	2.64B	2.33B	2.38B
Gross Profit	346.00M	369.80M	297.30M	316.10M	247.50M	291.00M
EBITDA	182.70M	168.60M	394.30M	113.00M	69.00M	120.10M
Net Income	108.00M	95.20M	257.60M	45.30M	15.20M	44.40M
Balance Sheet
Total Assets	1.22B	1.20B	1.21B	1.41B	1.34B	1.24B
Cash, Cash Equivalents and Short-Term Investments	36.00M	34.70M	24.60M	21.30M	20.40M	13.30M
Total Debt	113.40M	56.10M	118.00M	187.40M	250.30M	234.90M
Total Liabilities	831.70M	783.70M	777.90M	912.40M	888.30M	719.50M
Stockholders Equity	387.30M	416.30M	435.10M	498.00M	456.30M	518.80M
Cash Flow
Free Cash Flow	199.60M	190.00M	25.80M	93.70M	66.80M	133.60M
Operating Cash Flow	232.80M	241.10M	53.40M	126.50M	91.60M	158.30M
Investing Cash Flow	21.00M	-50.30M	348.50M	-29.90M	-14.80M	-10.20M
Financing Cash Flow	-268.30M	-180.70M	-398.60M	-95.70M	-69.70M	-146.20M

REV Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REVG, the sentiment is Positive. The current price of 62.55 is above the 20-day moving average (MA) of 58.30, above the 50-day MA of 55.98, and above the 200-day MA of 47.54, indicating a bullish trend. The MACD of 2.16 indicates Negative momentum. The RSI at 70.54 is Negative, neither overbought nor oversold. The STOCH value of 91.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REVG.

REV Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REVG	74 Outperform	$3.05B	33.10	29.41%	0.39%	3.50%	-57.51%
OSK	71 Outperform	$8.26B	12.73	15.42%	1.56%	-2.28%	-0.53%
TEX	71 Outperform	$3.62B	23.40	7.85%	1.24%	4.60%	-65.73%
ALG	70 Outperform	$2.11B	18.08	10.82%	0.69%	-2.73%	-2.91%
ASTE	66 Neutral	$1.05B	22.03	7.37%	1.14%	6.66%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HY	51 Neutral	$549.76M	210.45	0.51%	4.61%	-8.30%	-98.18%

REV Group Corporate Events

REV Group Announces Merger with Terex Corporation

On October 29, 2025, REV Group entered into a definitive merger agreement with Terex Corporation to form a leading specialty equipment manufacturer. The merger, combining complementary portfolios, is expected to unlock $75 million in synergies by 2028 and create a diversified leader in emergency, waste, utilities, environmental, and materials processing equipment. Terex plans to exit its Aerials segment, further reducing its exposure to cyclical markets. The transaction is anticipated to close in the first half of 2026, subject to shareholder and regulatory approvals.