# REV Group, Inc. (REVG) Q3 2025 Financial Results Summary
**Release Date: September 3, 2025**
REV Group, Inc. has reported its financial results for the third quarter of fiscal 2025, revealing strong growth compared to the same quarter last year. Below is a summary of the key financial metrics and operational highlights.
### Financial Summary
– **Net Sales**:
– Q3 2025: $644.9 million
– Q3 2024: $579.4 million
– **Change**: Up by $65.5 million, or **11.3%** year-over-year (YoY). Excluding the impact of the previously accounted Bus Manufacturing Businesses, net sales increased by **20.5%**.
– **Net Income**:
– Q3 2025: $29.1 million, or $0.59 per diluted share
– Q3 2024: $18.0 million, or $0.35 per diluted share
– **Change**: Up by **61.1%** YoY. Adjusted Net Income for Q3 2025 was $38.6 million or $0.79 per diluted share compared to $24.8 million or $0.48 per diluted share last year.
– **Adjusted EBITDA**:
– Q3 2025: $64.1 million
– Q3 2024: $45.2 million
– **Change**: Up by **42.0%** YoY. Excluding the Bus Manufacturing Businesses, Adjusted EBITDA increased by **66.1%**.
### Segment Performance
– **Specialty Vehicles Segment**:
– Net Sales:
– Q3 2025: $483.3 million
– Q3 2024: $432.1 million
– **Change**: Up by **11.8%** YoY. Excluding the Bus Manufacturing Businesses, the increase was **24.6%**.
– Adjusted EBITDA:
– Q3 2025: $64.6 million
– Q3 2024: $44.3 million
– **Change**: Up by **45.8%** YoY.
– Backlog at end of Q3 2025: $4,275.5 million, up by $161.1 million from $4,114.4 million YoY.
– **Recreational Vehicles Segment**:
– Net Sales:
– Q3 2025: $161.7 million
– Q3 2024: $147.4 million
– **Change**: Up by **9.7%** YoY.
– Adjusted EBITDA:
– Q3 2025: $8.1 million
– Q3 2024: $9.4 million
– **Change**: Decrease of **13.8%** YoY due to tariff impacts and increased dealer assistance costs.
### Operational Highlights
– **Backlog**: Total backlog for the company at the end of Q3 2025 was $4,499.8 million, up from $4,354.7 million YoY.
– **Cash Flow**:
– Net cash provided by operating activities for the nine months ended July 31, 2025, was $164.2 million, compared to a cash outflow of $15.2 million during the same period last year.
– **Debt and Liquidity**:
– Net debt stood at $54.0 million as of July 31, 2025.
– The company had $247.2 million available under its ABL revolving credit facility.
### Capital Allocation
– **Capital Expenditures**: For Q3 2025, capital expenditures were $11.6 million, up from $5.9 million in Q3 2024.
– **Dividends**: The board of directors declared a quarterly cash dividend of $0.06 per share, payable on October 10, 2025, to shareholders on record as of September 26, 2025.
### Updated 2025 Guidance
– **Net Sales**: Expected to be between $2.4 billion and $2.45 billion.
– **Net Income**: Projected to be between $95 and $108 million.
– **Adjusted EBITDA**: Estimated in the range of $220 million to $230 million.
– **Free Cash Flow**: Anticipated to be between $140 million and $150 million, which includes capital expenditures of $45 to $50 million.
### Conclusion
The Q3 2025 results for REV Group showcase substantial growth across key financial metrics, driven particularly by strong performance in the Specialty Vehicles segment. The company continues on a trajectory of operational improvement as reflected in its rising backlog and cash flow metrics. The declared dividends and share repurchase authorities suggest a commitment to returning value to shareholders.
| Three Months Ended | July 31, 2025 | July 31, 2024 | Nine Months Ended | July 31, 2025 | July 31, 2024 |
|---|---|---|---|---|---|
| Net sales | $644.9 | $579.4 | $1,799.1 | $1,782.3 | |
| Cost of sales | 543.2 | 501.1 | 1,531.9 | 1,563.8 | |
| Gross profit | 101.7 | 78.3 | 267.2 | 218.5 | |
| Operating expenses: | |||||
| Selling, general and administrative | 44.7 | 43.1 | 132.5 | 149.8 | |
| Restructuring | — | 4.7 | — | 9.2 | |
| Impairment charges | — | 1.9 | — | 14.5 | |
| Total operating expenses | 44.7 | 49.7 | 132.5 | 173.5 | |
| Operating income | 57.0 | 28.6 | 134.7 | 45.0 | |
| Interest expense, net | 6.4 | 7.6 | 18.8 | 21.0 | |
| Loss (Gain) on sale of business | 9.6 | (1.4) | 39.6 | (260.4) | |
| Income before provision for income taxes | 41.0 | 22.4 | 76.3 | 284.4 | |
| Provision for income taxes | 11.9 | 4.4 | 10.0 | 68.5 | |
| Net income | $29.1 | $18.0 | $66.3 | $215.9 | |
| Net income per common share: | |||||
| Basic | $0.60 | $0.35 | $1.32 | $3.96 | |
| Diluted | 0.59 | 0.35 | 1.31 | 3.91 | |
| Dividends declared per common share | 0.06 | 0.05 | 0.18 | 3.15 | |
| Adjusted net income per common share: | |||||
| Basic | $0.80 | $0.48 | $1.90 | $1.11 | |
| Diluted | 0.79 | 0.48 | 1.87 | 1.09 | |
| Weighted Average Shares Outstanding: | |||||
| Basic | 48,500,870 | 51,514,327 | 50,067,103 | 54,571,246 | |
| Diluted | 49,163,538 | 52,136,498 | 50,678,549 | 55,163,877 |
| July 31, 2025 | October 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $36.0 | $24.6 |
| Accounts receivable, net | 196.1 | 152.3 |
| Inventories, net | 549.3 | 602.8 |
| Other current assets | 34.0 | 26.8 |
| Total current assets | 815.4 | 806.5 |
| Property, plant and equipment, net | 139.6 | 130.2 |
| Goodwill | 137.7 | 137.7 |
| Intangible assets, net | 86.0 | 95.4 |
| Right of use assets | 22.6 | 32.1 |
| Deferred income taxes | 8.2 | 5.4 |
| Other long-term assets | 9.5 | 5.7 |
| Total assets | $1,219.0 | $1,213.0 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $216.0 | $188.8 |
| Short-term customer advances | 155.1 | 158.0 |
| Accrued compensation | 33.8 | 33.7 |
| Short-term accrued warranty | 21.8 | 20.0 |
| Short-term lease obligations | 5.6 | 7.3 |
| Other current liabilities | 67.8 | 61.5 |
| Total current liabilities | 500.1 | 469.3 |
| Long-term debt | 90.0 | 85.0 |
| Long-term customer advances | 182.7 | 160.1 |
| Long-term lease obligations | 17.8 | 25.7 |
| Other long-term liabilities | 41.1 | 37.8 |
| Total liabilities | 831.7 | 777.9 |
| Commitments and contingencies | ||
| Shareholders’ Equity: | ||
| Preferred stock ($.001 par value, 95,000,000 shares authorized; none issued or outstanding) | — | — |
| Common stock ($.001 par value, 605,000,000 shares authorized; 48,798,333 and 52,131,600 shares issued and outstanding, respectively) | 0.1 | 0.1 |
| Additional paid-in capital | 212.5 | 316.5 |
| Retained earnings | 174.6 | 118.3 |
| Accumulated other comprehensive income | 0.1 | 0.2 |
| Total shareholders’ equity | 387.3 | 435.1 |
| Total liabilities and shareholders’ equity | $1,219.0 | $1,213.0 |
