Executive Summary

Strong quarter with broad-based outperformance: net sales $629.1M (+2.0% reported; +7.7% ex-bus YoY) and Adjusted EPS $0.70, both above S&P Global consensus (Revenue $603.5M*, EPS $0.57*) driven by continued fire apparatus throughput and pricing; adjusted EBITDA rose to $58.9M (9.4% margin) .
Guidance raised on top line and cash: FY25 Net Sales to $2.35–$2.45B (from $2.30–$2.40B) and Free Cash Flow to $100–$120M (from $90–$110M); Adjusted EBITDA tightened higher at the low end to $200–$220M (from $190–$220M), offset by lower GAAP net income reflecting a $30M Lance Camper non‑cash loss held for sale (net $16.6M tax benefit) and higher interest expense .
Mix remains a tale of two segments: Specialty Vehicles revenue/EBITDA up on fire throughput and price; Recreation softer on volume and Class B dealer assistance; RV tariffs on imported luxury van chassis are a discrete ~$5M 2H headwind, with future buys shifting to U.S. chassis .
Capital returns/throughput investments are catalysts: $88.4M buyback (2.9M shares at $30.70) and a $20M Brandon, SD investment to expand S‑180/custom Spartan capacity; dividend maintained at $0.06 .

What Went Well and What Went Wrong

What Went Well

Fire apparatus throughput drove top-line and margin expansion; Specialty Vehicles Adjusted EBITDA rose 66.6% YoY to $56.3M on higher shipments and price realization; backlog increased to $4.28B with 1.1x book-to-bill .
Management execution and cash discipline: Q2 operating cash flow was $117M, enabling $88.4M of repurchases while maintaining ~$263M of ABL availability and net debt of $101.2M .
Guidance credibility: Raised FY25 revenue/FCF and tightened EBITDA around stronger 1H throughput, while embedding tariff headwinds (~$10M 2H in Specialty; ~$5M in RV) .
- Quote: “The standout this quarter was the sustained year-over-year increase in manufacturing throughput within the fire group” — CEO Mark Skonieczny .

What Went Wrong

Recreation headwinds persist: RV net sales fell 2.4% YoY and Adjusted EBITDA declined 9.9% on lower units and higher dealer assistance, particularly in Class B; RV backlog declined to $267.9M .
Tariff overhang: ~$10M 2H Specialty non‑chassis material costs and ~$5M discrete RV Class B van chassis tariffs will reduce conversion margins (2H incremental margins guided to 20–25% vs. prior 30–40%) .
GAAP optics: Recorded a $30M non‑cash loss on Lance Camper (assets held for sale), partially offset by a $16.6M tax benefit; FY25 GAAP net income guidance lowered to $88–$107M .

Financial Results

Consolidated Performance vs Prior Year and Prior Quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($M)	$616.9	$525.1	$629.1
GAAP Diluted EPS ($)	$0.28	$0.35	$0.38
Adjusted EPS ($)	$0.39	$0.40	$0.70
Adjusted EBITDA ($M)	$37.5	$36.8	$58.9
Adjusted EBITDA Margin (%)	6.1%	7.0%	9.4%

Segment Breakdown

Segment	Metric	Q2 2024	Q1 2025	Q2 2025
Specialty Vehicles	Net Sales ($M)	$437.4	$370.2	$453.9
	Adjusted EBITDA ($M)	$33.8	$35.2	$56.3
	Adjusted EBITDA Margin (%)	7.7%	9.5%	12.4%
Recreational Vehicles	Net Sales ($M)	$179.7	$155.0	$175.3
	Adjusted EBITDA ($M)	$12.1	$9.2	$10.9
	Adjusted EBITDA Margin (%)	6.7%	5.9%	6.2%

Backlog and Dividend KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Specialty Backlog ($M)	$4,064.4	$4,226.1	$4,282.0
Recreation Backlog ($M)	$274.7	$264.5	$267.9
Total Backlog ($M)	$4,339.1	$4,490.6	$4,549.9
Dividend Declared/Share ($)	$0.05	$0.06	$0.06

Results vs S&P Global Consensus (Q2 2025)

Metric	Consensus*	Actual
Revenue ($M)	$603.5*	$629.1
Adjusted/Primary EPS ($)	$0.57*	$0.70
EBITDA ($M)	$52.2*	$58.9 (Adj.)

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($B)	FY25	$2.30–$2.40	$2.35–$2.45	Raised
Net Income ($M)	FY25	$98–$125	$88–$107	Lowered
Adjusted EBITDA ($M)	FY25	$190–$220	$200–$220	Raised (low end)
Adjusted Net Income ($M)	FY25	$116–$140	$112–$130	Lowered
Free Cash Flow ($M)	FY25	$90–$110	$100–$120	Raised
Capital Expenditures ($M)	FY25	$30–$35	$45–$50	Raised
Interest Expense ($M)	FY25	$18–$20 (FY25 outlook context)	$24–$26	Raised
Dividend ($/share/qtr)	Ongoing	$0.06	$0.06	Maintained

Notes: Net income lowered primarily due to $30M non‑cash Lance Camper loss (assets held for sale) and higher interest expense; Adjusted EBITDA outlook offsets tariff headwinds via throughput .

Earnings Call Themes & Trends

Topic	Q4 2024 (Prev-2)	Q1 2025 (Prev-1)	Q2 2025 (Current)	Trend
Fire/ambulance throughput	Specialty margin gains; operational focus	Fire catching up with Ambulance on productivity; backlog ~2–2.5 years	Fire shipments accelerated; record Spartan shipments since 2020; 1.1x book-to-bill	Improving
Tariffs & inflation	Not central yet	Limited direct exposure; multi-sourcing; monitoring	~$10M 2H Specialty impact; ~$5M RV Class B import chassis impact; embedded in guide	Headwind, contained
S-180 program & CapEx	N/A	S-180 highlighted in strategy deck	$20M Brandon, SD expansion; keep S-180 lead time <1 year; broader brand rollout	Scaling
Recreation demand & dealer assistance	Weak RV; discounting	Outperformed industry at Tampa show; cautious outlook	Flat 2H revenue vs LY; higher assistance in Class B; $5M tariff impact	Stabilizing at lower level
Capital allocation	New $250M buyback; dividend +20%	Buybacks resumed ($19.2M)	$88.4M Q2 buyback; balanced with organic investment	Shareholder-friendly

Management Commentary

“The standout this quarter was the sustained year-over-year increase in manufacturing throughput within the fire group, which played a pivotal role in driving our top-line growth.” — CEO Mark Skonieczny .
“We…plan to accelerate certain capital investments to further our manufacturing throughput goals including a $20 million investment in our Brandon, South Dakota location.” — CEO Mark Skonieczny .
“Full year adjusted EBITDA guidance is…updated to a range of $200–$220 million… expected to largely offset tariff impacts in the second half.” — CFO Amy Campbell .
“We expect a $5 million impact within the recreational vehicle segment in the second half…related to Class B luxury van chassis that are imported from Europe… We have transitioned our future purchases…to U.S. domestic plants.” — CEO Mark Skonieczny .

Q&A Highlights

Tariff timing/magnitude: ~$5M RV Class B van chassis tariffs mostly 2H25, small spill to early 2026; ~$10M 2H25 Specialty tariffs equate to ~2–2.5% non‑chassis material cost in 1H26 then roll off; potential surcharges if needed .
S‑180 demand/margins: Orders remain strong across Spartan, Ferrara, KME; margins “comparative with other custom trucks”; $20M Brandon CapEx aims to sustain sub‑1‑year S‑180 lead times and broaden throughput .
Recreation trends: Dealer assistance concentrated in Class B; second-half RV sales now guided ~flat YoY; dealer inventory healthier with 77% MY25/26 .
2027 targets/Lance sale: Lance <10% of RV sales and not material to FY27 targets; portfolio focus on scalable, higher-margin businesses .

Estimates Context

Q2 2025 results beat S&P Global consensus: Revenue $629.1M vs $603.5M*; Primary/Adjusted EPS $0.70 vs $0.57*; Adjusted EBITDA $58.9M vs EBITDA consensus $52.2M* .
Forward near-term estimates (S&P Global):
- Q3 2025: Revenue $616.2M*, EPS $0.6333*, EBITDA $52.3M*
- Q4 2025: Revenue $646.8M*, EPS $0.78*, EBITDA $62.2M*
  Values retrieved from S&P Global.*

Implication: Street likely raises revenue and EPS for 2H within tighter EBITDA conversion given tariff drag; guidance already embeds tariff effects and higher interest costs .

Key Takeaways for Investors

Specialty Vehicles momentum is the core driver: sustained fire throughput, price realization, and expanding S‑180 capacity underpin higher EBITDA and margin trajectory .
Recreation headwinds are contained and discrete: Class B-specific assistance and a defined ~$5M tariff hit should fade as sourcing shifts on future chassis; 2H RV sales ~flat YoY .
FY25 setup improved on revenue/FCF with disciplined risk management: guidance raised on sales/FCF and tightened on EBITDA even as GAAP net income reflects Lance non‑cash loss and higher interest; focus is on cash and throughput .
Capital allocation is balanced and supportive: $88.4M Q2 buyback and maintained dividend alongside $20M Brandon investment indicate confidence and a playbook for offsetting tariff headwinds via throughput .
Watch 2H conversion and tariff flow-through: management now guides 20–25% incremental conversion in 2H (from 30–40%) given tariffs; monitor Specialty orders/book-to-bill and cycle times for sustained momentum .
Potential catalysts: further backlog normalization with shorter lead times (esp. S‑180), additional share repurchases, progress on Lance sale, and confirmation of tariff mitigation in print/guide .

Appendix: Additional Notables

Liquidity/Leverage: ~$263.2M ABL availability; net debt $101.2M at Q2 end; net leverage ~0.5x TTM Adj. EBITDA per management .
Corporate actions: Promotion of Chief Supply Chain Officer underscores supply chain/strategic sourcing capability central to tariff navigation .
Product/brand: Continued product innovation in Recreation (e.g., American Coach influencer-designed floorplan) supports premium positioning despite soft demand .

References:

Q2’25 press release and 8‑K (including financial statements, segment details, guidance):
Q2’25 earnings call transcript (prepared remarks and Q&A):
Q1’25 press release and call (trend context):
Q4’24 press release (prior guidance baseline):

S&P Global estimates and targets marked with an asterisk (). Values retrieved from S&P Global.

REV Group, Inc. (REVG)·Q2 2025 Earnings Summary