REV Group, Inc. (NYSE: REVG) released its financial results for the fourth quarter ending October 31, 2024, according to the company’s statement.
Consolidated net sales for the quarter were $597.9 million, a decrease from $693.3 million in the fourth quarter of 2023.
Excluding the divestiture of Collins Bus Corporation in January 2024, net sales fell by $41.2 million, or 6.4%.
The decline was mainly attributed to lower sales in the Recreational Vehicles segment, partially offset by growth in the Specialty Vehicles segment.
The quarter’s net income rose to $41.7 million, or $0.80 per diluted share, compared to $29.7 million, or $0.50 per diluted share, in the prior year.
Adjusted net income decreased slightly to $26.9 million from $31.7 million in the same period last year.
The Specialty Vehicles segment posted net sales of $439.9 million, a reduction from $478.8 million in the same quarter last year.
Excluding Collins’ contribution in 2023, net sales increased by $15.3 million, or 3.6%.
The improvement was driven by higher shipments of fire apparatus and ambulance units, along with pricing actions.
Segment Adjusted EBITDA grew by $6.9 million to $50.2 million.
Excluding Collins, Adjusted EBITDA saw a 67.9% increase due to favorable product mixes and price adjustments.
The backlog for the segment reached $4.18 billion, reflecting strong demand for fire apparatus and ambulances, offset by reduced terminal truck orders.
The Recreational Vehicles segment experienced a 26.5% drop in net sales, down to $158.1 million in the fourth quarter.
Lower unit shipments and increased discounting contributed to the decline.
The backlog for this segment decreased to $291.5 million, reflecting lower order intake, cancellations, and shipments against the backlog.
Adjusted EBITDA for the segment also dropped by 57.6%, primarily due to shipment reductions and inflationary pressures.
As of October 31, 2024, REV Group reported $24.6 million in cash and cash equivalents, with $60.4 million in net debt.
The company had $349.6 million available under its revolving credit facility.
The board approved a new $250 million share repurchase program to replace the existing authorization.
Additionally, the board increased the quarterly dividend by 20% to $0.06 per share.
Looking ahead, fiscal year 2025 guidance includes net sales between $2.3 billion and $2.4 billion, with adjusted EBITDA projected between $190 million and $220 million.
REV Group, Inc. reported $597.9 million in net sales for the fourth quarter of 2024, marking a decline compared to $693.3 million in 2023.
This drop is attributed to the divestiture of Collins Bus Corporation and weaker performance in the Recreational Vehicles segment, which was partially offset by gains in the Specialty Vehicles segment.
Net income for the quarter rose to $41.7 million, with adjusted net income slightly declining year-over-year.
For the full year, consolidated net sales were $2.38 billion, a reduction of 4.4% from 2023, excluding Collins.
Specialty Vehicles saw strong demand for fire and ambulance units, while Recreational Vehicles faced lower shipments and order cancellations.
The company ended the fiscal year with robust cash flow and initiated new capital allocation strategies, including a 20% dividend increase and a $250 million share repurchase program.
