REV Group, Inc. Reports Fourth Quarter 2024 Financial Results
REV Group, Inc. (NYSE:REVG) today announced its financial results for the fourth quarter ending October 31, 2024.
Key Financial Metrics
| Financial Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $597.9M | $693.3M | (13.7%) |
| Net Income | $41.7M | $29.7M | 40.4% |
| Earnings Per Share (EPS) | $0.80 | $0.50 | 60% |
| Adjusted Net Income | $26.9M | $31.7M | (15.2%) |
| Adjusted EBITDA | $49.6M | $54.0M | (8.1%) |
Interpretation: Despite a year-over-year decrease in total revenue and adjusted net income, the company experienced an increase in net income and earnings per share. The decline in revenue can be attributed to the exclusion of sales from the Collins Bus Corporation divestiture and challenges in the Recreational Vehicles segment.
Revenue Performance by Segment
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | YoY Change |
|---|---|---|---|
| Specialty Vehicles | $439.9M | $478.8M | (8.1%) |
| Recreational Vehicles | $158.1M | $215.2M | (26.5%) |
Interpretation: The Specialty Vehicles segment saw increased demand, especially for fire apparatus and ambulance units, contributing to a rise in adjusted EBITDA even after the divestiture of Collins. Conversely, the Recreational Vehicles segment faced challenges, with decreased shipments affecting performance.
Key Developments and Operational Highlights
- Approval of a new $250 million share repurchase authorization.
- 20% increase in the quarterly cash dividend.
- Divestiture of non-core assets like Collins and ElDorado National (California).
- Backlog growth in the Specialty Vehicles segment, indicating strong future demand.
Comments from Company Officers
Mark Skonieczny, President and CEO, highlighted the robust earnings momentum driven by the diversified portfolio and effective cost management despite end market challenges. He praised the team's efforts in maneuvering through a dynamic market, showcasing operational excellence and sustainable growth aspirations.
Dividends and Share Repurchase Program
- A 20% increase in the quarterly cash dividend to $0.06 per share, payable on January 10, 2025, equating to an annualized rate of $0.24 per share.
- A new $250 million share repurchase program has been authorized, replacing the former $175 million program.
Forward Guidance
For fiscal year 2025, REV Group has projected net sales between $2.3 to $2.4 billion, with net income ranging from $98 million to $125 million. Adjusted EBITDA is expected to be between $190 million and $220 million.
In summary, REV Group navigated the quarter with strategic divestitures and a focus on operational efficiency, positioning itself for sustainable growth and shareholder value creation as articulated in its fiscal 2025 outlook.
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