REV Group reported strong fiscal 2025 second-quarter results, with consolidated net sales reaching $629.1 million for the three months ending April 30.
The Wisconsin-based manufacturer of specialty and recreational vehicles also raised its full-year outlook based on continued operational strength and increased demand in its fire and emergency vehicle division.
Excluding results from its exited Bus Manufacturing Businesses, net sales rose 7.7% from the same period last year. The company recorded net income of $19 million for the quarter, up from $15.2 million a year earlier.
Adjusted net income increased to $35.4 million, a rise from $20.9 million the prior year. Adjusted EBITDA for the quarter was also $58.9 million, an increase year-over-year.
“The standout this quarter was the sustained year-over-year increase in manufacturing throughput within the fire group, which played a pivotal role in driving our top-line growth,” Mark Skonieczny, REV Group president and CEO, said in a press release.
The company repurchased approximately 2.9 million shares for $88.4 million during the quarter. It also plans to invest $20 million to expand manufacturing capacity in Brandon, South Dakota.
Updated full-year fiscal 2025 guidance includes net sales between $2.35 billion and $2.45 billion and adjusted EBITDA of $200 million to $220 million.
The company projects adjusted net income between $112 million and $130 million and free cash flow between $100 million and $120 million.
The Specialty Vehicles segment also led performance, generating $453.9 million in net sales for the quarter. Excluding bus operations, sales rose 12.2% year-over-year, driven by increased shipments of fire apparatus and price realization. Segment backlog grew to $4.28 billion, up from $4.06 billion the previous year.
Segment profitability also improved, with adjusted EBITDA reaching $56.3 million, a 66.6% increase from the previous year.
The Recreational Vehicles segment saw a 2.4% drop in net sales to $175.3 million. Lower unit shipments and increased dealer support were partly offset by pricing adjustments. Backlog in this segment declined slightly to $267.9 million.
Recreational vehicle profitability slipped as adjusted EBITDA fell 9.9% to $10.9 million.