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Speciality vehicle provider REV (NYSE:REVG) exceeded the market’s revenue expectations in Q1 CY2025 as sales rose 2% year on year to $629.1 million. Its non-GAAP EPS of $0.70 per share was 22.8% above analysts’ consensus estimates.
Is now the time to buy REVG? Find out in our full research report (it’s free).
REV Group’s first quarter results were shaped by continued operational improvements in its fire and ambulance manufacturing operations. CEO Mark Skonieczny highlighted the alignment in productivity gains between the fire and ambulance groups, driven by investments in equipment upgrades, process optimization, and workforce training. The company’s decision to focus on lean manufacturing principles enabled faster production cycles and higher throughput, which contributed to earnings growth despite only modest sales gains. Additionally, the exit from the non-motorized travel trailer and truck camper business was discussed as a step toward refocusing on scalable, higher-margin segments. Management acknowledged persistent softness in the recreational vehicle market, with CFO Amy Campbell noting that REV brands’ retail sales outperformed broader industry trends even as unit volumes declined.
Looking forward, management is focused on sustaining momentum in the specialty vehicle segment, while navigating tariff-related cost pressures and uncertainty in consumer demand. CFO Amy Campbell outlined expectations for a continued tariff impact, particularly within the specialty vehicle and recreational vehicle segments, but emphasized ongoing efforts to offset these headwinds through greater production efficiency and selective pricing actions. Management also discussed incremental investments—including a $20 million expansion in the Brandon, South Dakota facility—to accelerate output of popular models like the S-180 modular fire apparatus. Campbell cautioned that while the company expects stable demand for fire and ambulance products, consumer confidence and potential changes in interest rates could weigh on recreational vehicle sales in the second half of the year.
Management attributed the quarter’s performance to increased manufacturing throughput in fire and ambulance operations, a refined product mix, and ongoing cost discipline, while flagging new tariff headwinds and adjustments to the company’s product portfolio.
REV Group’s outlook is driven by investments in production capacity, ongoing demand for emergency vehicles, and the ability to manage cost headwinds related to tariffs and consumer uncertainty.
In the coming quarters, our team will monitor (1) the pace and effectiveness of production investments, particularly at the Brandon facility; (2) the company’s progress in offsetting tariff-related material costs through operational efficiencies and sourcing changes; and (3) trends in recreational vehicle demand as dealer inventory levels normalize and consumer sentiment evolves. Execution on these fronts will be key to sustaining earnings momentum.
REV Group currently trades at a forward P/E ratio of 13.3×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it’s free).
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