REV Group, Inc. reported a decline in financial performance for the first quarter of fiscal year 2025, with net sales totaling $525.1 million, down from $586.0 million in the same period last year. The company’s gross profit increased to $69.8 million, compared to $62.9 million a year earlier, reflecting a gross margin improvement. However, net income fell significantly to $18.2 million, or $0.35 per share, from $182.7 million, or $3.09 per share, in the prior year, primarily due to a lack of extraordinary gains from divestitures that had previously inflated earnings.
The decrease in net sales was attributed to lower shipments in the Recreational Vehicles segment, which saw a drop in unit sales, while the Specialty Vehicles segment experienced a slight increase in sales, driven by higher demand for fire apparatus and ambulances. The company noted that excluding the impact of its divested Bus Manufacturing Businesses, net sales actually increased by 3.1%. Additionally, selling, general, and administrative expenses decreased significantly to $41.2 million from $55.4 million, largely due to the absence of transaction costs related to the previous year’s sale of Collins.
Operationally, REV Group's total assets decreased to $1.213 billion from $1.242 billion, with current liabilities rising to $469.3 million, up from $434.7 million. The company’s backlog increased to $4.491 billion, compared to $4.241 billion a year ago, indicating strong future demand, particularly in the Specialty Vehicles segment. The company also repurchased 579,165 shares at a cost of $19.2 million during the quarter, reflecting its ongoing commitment to return capital to shareholders.
Looking ahead, REV Group remains focused on optimizing its product portfolio and enhancing operational efficiencies. The company is navigating challenges related to supply chain disruptions and inflationary pressures but is optimistic about the demand for its specialty vehicles. The management anticipates that the strategic decisions made, including the recent amendments to its credit facility, will support its growth objectives and financial stability in the coming quarters.
About REV Group, Inc.
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