REV Group, Inc. reported its financial results for the three and nine months ended July 31, 2024, revealing a decline in net sales but significant improvements in profitability metrics compared to the previous fiscal period.

For the three months ended July 31, 2024, net sales totaled $579.4 million, down from $680.0 million in the same period of 2023. The nine-month figures also reflected a decrease, with net sales of $1,782.3 million compared to $1,944.7 million in the prior year. The decline in sales was attributed to a decrease in the Recreational Vehicles segment, which saw a drop in unit shipments and increased discounting. In contrast, the Specialty Vehicles segment experienced a slight increase in sales when excluding the impact of the Collins divestiture.

Despite the decrease in sales, REV Group's profitability improved significantly. The company reported a net income of $18.0 million for the three months ended July 31, 2024, compared to $14.9 million for the same period in 2023. For the nine months, net income surged to $215.9 million, a substantial increase from $15.6 million in the prior year. Basic net income per share for the three months was $0.35, up from $0.25, and for the nine months, it rose to $3.96 from $0.27.

The company’s gross profit for the three months ended July 31, 2024, was $78.3 million, slightly down from $80.2 million in 2023, while for the nine months, it decreased marginally to $218.5 million from $220.6 million. Operating income improved to $28.6 million for the three months and $45.0 million for the nine months, compared to $25.7 million and $43.5 million, respectively, in the prior year.

Strategically, REV Group completed the divestiture of Collins Industries, which contributed significantly to its financial results, including a gain of $260.4 million for the nine months ended July 31, 2024. The company also recorded restructuring charges of $4.7 million for the three months and $9.2 million for the nine months, primarily related to the discontinuation of manufacturing operations at its ENC facility in California.

Total assets increased to $1,410.4 million as of July 31, 2024, up from $1,334.7 million at the end of the previous fiscal year. Shareholders' equity also rose to $498.0 million, compared to $394.6 million previously. However, cash and cash equivalents decreased to $21.3 million from $50.5 million, reflecting the impact of tax payments related to the Collins sale and lower customer advances.

Overall, while REV Group faced challenges in sales, its strategic divestitures and improved operational efficiency led to significant gains in profitability and shareholder value.