Revenue Miss at REV Group: Share Buyback Program Expanded

The current quarterly figures of REV Group fall short of analysts' expectations. Net sales amount to $597.9 million, missing the consensus estimate of $603.3 million. Excluding the divestiture of Collins, net sales decreased by 6.4 percent year-over-year, primarily due to a decline in the recreational vehicle segment. In the specialty vehicle segment, REV Group experienced a year-over-year decline of 8.1 percent, while net sales in the recreational vehicle segment fell by 26.5 percent. Adjusted EBITDA was $49.6 million, lower than the $54.0 million in the same quarter last year. On a positive note, the adjusted earnings per share stood at 51 cents, exceeding the analyst expectation of 49 cents. Net debt as of October 31 amounted to $60.4 million, with available liquidity of $24.6 million. The board also decided to increase the quarterly dividend by 20 percent to 6 cents per share, payable in January 2025. On December 5, 2024, the supervisory board announced the approval of a new share buyback program amounting to $250 million, replacing the previous program of $175 million, under which shares worth $126.1 million have been repurchased since June 2023. For fiscal year 2025, REV Group expects revenue between $2.3 and $2.4 billion, which is below the analyst estimates of $2.45 billion. The company also forecasts net sales growth of six to eight percent (CAGR) and a free cash flow of over $350 million for the years 2025 to 2027. Mark Skonieczny, President and CEO of REV Group, emphasizes that in fiscal year 2024, the company divested non-core assets, simplified the reporting structure, and returned significant capital gains to shareholders.