REV Group Q4: Mixed Results, $250 Million Buyback, Dividend Boost & More

REV Group, Inc. REVG shares are trading higher after the company reported fourth-quarter results.

Net sales of $597.9 million missed the consensus of $603.3 million. Excluding the impact of the Collins divestiture, net sales decreased 6.4% year over year due to lower net sales in the Recreational Vehicles segment.

Specialty Vehicles segment net sales fell 8.1% Y/Y while Recreational Vehicles segment net sales declined 26.5% Y/Y.

Adjusted EBITDA stood at $49.6 million, vs. $54.0 million a year ago quarter. Adjusted EPS of 51 cents exceeded the street view of 49 cents.

As of October 31, net debt totaled $60.4 million, with $24.6 million cash on hand.

The board of directors raised its regular quarterly cash dividend per share to $0.06, payable on January 10, 2025, to shareholders of record on December 26, 2024. This equates to a rate of $0.24 per share of common stock on an annualized basis, representing a 20% increase from fiscal year 2024.

On December 5, 2024, the board of directors authorized a new $250 million share repurchase program, replacing the previous $175 million program, under which $126.1 million had been repurchased since June 2023.

Outlook: REV Group expects FY25 net sales of $2.3 billion – $2.4 billion vs. an estimate of $2.45 billion and the adjusted net income of $116 million – $140 million.

For FY25-FY27, the company expects net sales growth of 6% – 8% (CAGR) and Free Cash Flow of over $350 million.

REV Group Inc. President and CEO Mark Skonieczny said, ”In addition, within fiscal 2024, we divested non-core assets, simplified our reporting structure and returned significant cash to shareholders.”

Investors can gain exposure to the stock via Cambria Shareholder Yield ETF SYLD and Cambria ETF Trust Cambria Micro And SmallCap Shareholder Yield ETF MYLD.

Price Action: REVG shares are up 16.7% at $34.53 at the last check Wednesday.

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