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REV Group Inc (REVG)
NYSE:REVG

REV Group (REVG) AI Stock Analysis

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REV Group

(NYSE:REVG)

Rating:78Outperform
Price Target:
$53.00
▲(6.96%Upside)
REV Group's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by improved profitability and strategic initiatives like share repurchases. The technical analysis supports a bullish trend, although valuation metrics suggest the stock might be overvalued. Attention to revenue challenges and strategic exits will be crucial for future performance.
Positive Factors
Earnings
REV Group's F2Q25 earnings beat expectations and raised FY25 Adjusted EBITDA outlook at the midpoint, suggesting strong company performance.
Operational Efficiency
Ongoing efficiency initiatives should continue to result in manufacturing throughput and operating margin.
Share Buybacks
The company repurchased over 5% of its outstanding shares, indicating robust financial health and confidence in its stock value.
Negative Factors
Adjusted EBITDA Estimates
There is a reduction in the FY25 Adj. EBITDA estimate from $204M to $202M.
Financial Risk
There is potential financial risk to REVG from tariffs, particularly given the fixed nature of contracts that historically made it difficult for the company to pass through costs real time.
Revenue Forecast
There is a modestly higher Specialty Vehicle revenue reflecting a more steady cadence of growth.

REV Group (REVG) vs. SPDR S&P 500 ETF (SPY)

REV Group Business Overview & Revenue Model

Company DescriptionREV Group, Inc. (REVG) is a leading American manufacturer of specialty vehicles serving diverse markets, including emergency, commercial, and recreation sectors. The company designs, produces, and sells a wide range of vehicles such as ambulances, fire trucks, school buses, shuttle buses, and RVs (recreational vehicles). REV Group operates through a portfolio of well-known brands, providing innovative and reliable vehicle solutions tailored to meet the specific needs of its customers.
How the Company Makes MoneyREV Group generates revenue through the manufacturing and sale of specialty vehicles across multiple segments. Key revenue streams include the sale of emergency vehicles like ambulances and fire trucks, commercial vehicles such as buses and vans, and recreational vehicles like motorhomes. The company also earns from aftermarket parts and service offerings, providing maintenance and repair services for its vehicles. Significant partnerships with government agencies, municipalities, and commercial enterprises bolster its sales, while its diverse product lineup helps mitigate risks associated with market fluctuations in any single sector.

REV Group Earnings Call Summary

Earnings Call Date:Jun 04, 2025
(Q2-2025)
|
% Change Since: 33.31%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company reported strong financial performance, particularly in the specialty vehicles segment, and executed a significant share repurchase program. However, challenges such as tariff impacts and a decrease in recreational vehicle segment sales were noted. The decision to exit the Lance Camper business also highlighted some strategic adjustments.
Q2-2025 Updates
Positive Updates
Strong Second Quarter Performance
The company reported strong second quarter performance, with consolidated net sales of $629.1 million, up from $616.9 million in the same period last year, reflecting a 7.7% increase excluding divested businesses.
Specialty Vehicles Segment Growth
Specialty vehicles segment sales increased by 12.2% year-over-year, driven by higher unit production of fire apparatus units and favorable mix of higher content ambulance units.
Significant Increase in Adjusted EBITDA
Consolidated adjusted EBITDA increased by 63.6% year-over-year, reaching $50 million compared to $37.5 million in the second quarter of 2024.
Fire Apparatus and Ambulance Group Achievements
The fire group achieved significant manufacturing throughput increases, contributing to top-line growth, while the ambulance group celebrated 50 years of innovation and growth.
Share Repurchase Program
The company repurchased approximately 2.9 million shares for $88 million, reflecting a strong commitment to returning value to shareholders.
Negative Updates
Tariff Impacts
The company expects a $5 million tariff impact within the recreational segment related to Class B luxury van chassis imported from Europe, and a $10 million impact on material spend in the specialty vehicle segment due to tariffs.
Recreational Vehicle Segment Challenges
Recreational vehicle segment sales decreased by 2.4% year-over-year, impacted by soft end-market demand, leading to a 9.9% decrease in adjusted EBITDA.
Non-Motorized Travel Trailer and Truck Camper Exit
The company decided to exit the Lance Camper business due to geographic and operational challenges, resulting in a non-cash loss of $30 million, partially offset by a $16.6 million income tax benefit.
Company Guidance
During the Second Quarter 2025 Earnings Conference Call, REV Group, Inc. provided updated financial guidance for fiscal 2025, reflecting strong year-to-date performance and expectations for managing tariff impacts. The company raised its consolidated revenue guidance to $2.35 billion to $2.45 billion, an increase of $50 million from the prior outlook, translating to an 8% rise from fiscal 2024's pro forma net sales. Adjusted EBITDA guidance was also updated to $200 million to $220 million from the previous range of $190 million to $220 million, driven largely by increased throughput in the specialty vehicle segment, despite anticipated $10 million tariff impacts. Net income guidance was revised to $88 million to $107 million, accounting for a $30 million non-cash loss on Lance Camper assets held for sale. Capital expenditure guidance was increased to $45 million to $50 million, reflecting investments to boost production efficiency. Additionally, the company repurchased approximately 2.9 million shares for $88 million under its $250 million authorization, reflecting a balanced approach to capital allocation while maintaining a strong balance sheet with ample liquidity.

REV Group Financial Statement Overview

Summary
REV Group exhibits a strong financial position with notable improvements in profitability, leverage, and cash management. The company has managed to enhance its margins and cash flows despite some revenue volatility. The balance sheet has improved in terms of leverage, though the decline in stockholders' equity and revenue challenges need to be addressed for sustained financial health.
Income Statement
78
Positive
REV Group shows strong profitability with a consistent increase in gross profit margin, reaching 13.8% in TTM (Trailing-Twelve-Months) from 10.6% in 2022. Net profit margin improved significantly over the years, from a negative in 2020 to 4.2% in TTM. Revenue growth has been somewhat volatile, but overall, profitability metrics indicate a positive trajectory. However, the recent TTM revenue was slightly lower than past years, indicating some revenue challenges.
Balance Sheet
72
Positive
The balance sheet demonstrates a stable equity ratio at 29.1% in TTM, although slightly down from previous years, indicating moderate financial stability. The debt-to-equity ratio improved to 0.43, down from 0.79 in 2020, suggesting better leverage management. Return on equity shows improvement with 27.1% in TTM, highlighting enhanced return capabilities. However, the reduction in stockholders' equity over the years poses potential risk.
Cash Flow
85
Very Positive
Cash flow analysis reveals a robust operating cash flow to net income ratio of 1.93 in TTM, indicating strong cash generation relative to profits. Free cash flow has grown significantly, with a TTM free cash flow of $159.4 million compared to $66.8 million in 2022, reflecting effective cash management. However, the fluctuation in free cash flow growth suggests some variability in cash generation capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.33B2.38B2.64B2.33B2.38B2.28B
Gross Profit322.60M297.30M316.10M247.50M291.00M228.10M
EBITDA165.70M394.30M113.00M69.00M120.10M19.80M
Net Income96.90M257.60M45.30M15.20M44.40M-30.50M
Balance Sheet
Total Assets1.23B1.21B1.41B1.34B1.24B1.31B
Cash, Cash Equivalents and Short-Term Investments28.80M24.60M21.30M20.40M13.30M11.40M
Total Debt154.50M118.00M187.40M250.30M234.90M367.50M
Total Liabilities869.80M777.90M912.40M888.30M719.50M840.00M
Stockholders Equity357.80M435.10M498.00M456.30M518.80M472.30M
Cash Flow
Free Cash Flow159.40M25.80M93.70M66.80M133.60M38.90M
Operating Cash Flow186.90M53.40M126.50M91.60M158.30M55.70M
Investing Cash Flow30.70M348.50M-29.90M-14.80M-10.20M1.70M
Financing Cash Flow-227.00M-398.60M-95.70M-69.70M-146.20M-49.30M

REV Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price49.55
Price Trends
50DMA
39.48
Positive
100DMA
35.30
Positive
200DMA
32.81
Positive
Market Momentum
MACD
2.44
Negative
RSI
80.36
Negative
STOCH
93.63
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 49.55 is above the 20-day moving average (MA) of 45.13, above the 50-day MA of 39.48, and above the 200-day MA of 32.81, indicating a bullish trend. The MACD of 2.44 indicates Negative momentum. The RSI at 80.36 is Negative, neither overbought nor oversold. The STOCH value of 93.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REVG.

REV Group Risk Analysis

REV Group disclosed 32 risk factors in its most recent earnings report. REV Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

REV Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.36B25.9834.41%0.49%-9.50%-54.36%
OSOSK
77
Outperform
$7.88B13.0815.24%1.67%5.95%-10.59%
HYHY
74
Outperform
$748.58M7.5321.56%3.41%-0.32%-35.10%
71
Outperform
$966.82M64.282.33%1.23%1.99%-39.02%
68
Neutral
$439.02M972.090.18%1.59%-4.08%
64
Neutral
kr64.07B12.511.54%9.83%0.04%-3.90%
WNWNC
54
Neutral
$480.67M-15.01%2.79%-25.44%-135.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
REVG
REV Group
49.55
24.98
101.67%
ASTE
Astec
42.89
14.07
48.82%
OSK
Oshkosh
122.48
21.40
21.17%
SHYF
Shyft Group
12.54
2.30
22.46%
WNC
Wabash National
11.48
-9.10
-44.22%
HY
Hyster-Yale Materials Handling
42.27
-22.67
-34.91%

REV Group Corporate Events

Stock BuybackDividendsFinancial Disclosures
REV Group Reports Strong 2024 Results and 2025 Outlook
Positive
Dec 11, 2024

REV Group, Inc. has announced its robust fiscal 2024 fourth-quarter and full-year results, highlighting a net income increase and strong overall performance despite a decrease in consolidated net sales. The company is optimistic about fiscal 2025 with new financial targets, a $250 million share repurchase authorization, and a 20% increase in quarterly cash dividends, showcasing its commitment to returning value to shareholders and maintaining financial health.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025