REV Group delivered a positive Q2, with management attributing outperformance to operational improvements, higher fire and ambulance unit shipments, and sustained efficiency gains across its manufacturing footprint. CEO Mark Skonieczny credited “sustained gains in manufacturing throughput, quality, and efficiency” as key drivers, while noting that targeted facility investments have enhanced the company’s ability to meet customer demand. The specialty vehicle segment, in particular, benefited from increased production and a favorable mix, which were supported by ongoing lean manufacturing and workforce training initiatives.
Is now the time to buy REVG? Find out in our full research report (it’s free).
REV Group (REVG) Q2 CY2025 Highlights:
- Revenue: $644.9 million vs analyst estimates of $614.4 million (11.3% year-on-year growth, 5% beat)
- Adjusted EPS: $0.79 vs analyst estimates of $0.63 (24.7% beat)
- Adjusted EBITDA: $64.1 million vs analyst estimates of $52.3 million (9.9% margin, 22.6% beat)
- The company lifted its revenue guidance for the full year to $2.43 billion at the midpoint from $2.4 billion, a 1% increase
- EBITDA guidance for the full year is $225 million at the midpoint, above analyst estimates of $204.9 million
- Operating Margin: 8.8%, up from 4.9% in the same quarter last year
- Backlog: $4.5 billion at quarter end
- Market Capitalization: $3.03 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From REV Group’s Q2 Earnings Call
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Mike Shlisky (D.A. Davidson) asked whether current EBITDA margins suggest REV Group is ahead of its midterm margin targets. CEO Mark Skonieczny replied that performance is tracking in line with expectations, with ongoing throughput gains supporting margin progress.
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Mike Shlisky (D.A. Davidson) questioned the near-term impact of tariffs and the expected cadence of margins into next year. CFO Amy Campbell explained that tariff headwinds will be most pronounced in the next quarter, with normalization expected later as incremental margins revert to historical levels.
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Mig Dobre (Baird) inquired about the effect of steel and aluminum tariffs and the company’s ability to offset these costs. Skonieczny and Campbell clarified that while tariffs pose a steady cost, ongoing supply chain adjustments and productivity initiatives are expected to mitigate the impact.
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Angel Castillo (Morgan Stanley) sought clarification on specialty vehicle backlog trends and pricing for future orders. Campbell stated the backlog remains elevated but stable, with pricing converting as units are shipped and no significant price declines seen for new orders.
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Mig Dobre (Baird) asked about capital deployment strategy given strong cash flow. Skonieczny indicated internal productivity investments are the priority, with opportunistic M&A considered when attractive targets arise.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the ramp-up and operational impact of the Spartan facility expansion, (2) how effectively REV Group manages tariff-related cost pressures in both specialty vehicles and RV segments, and (3) trends in backlog normalization and delivery lead times. Additional focus will be on the RV segment’s response to industry events and evolving consumer demand.
REV Group currently trades at $62.16, up from $51.81 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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