REV Group, Inc. ( REVG ) shares are trading higher after the company reported second-quarter FY25 results.

Net sales of $629.1 million beat the consensus of $612 million.

Excluding the impact of bus manufacturing, total net sales increased 7.7% Y/Y, aided by growth of the Specialty Vehicles segment.

Specialty Vehicles segment net sales rose 3.8% year over year (Y/Y) to $453.9 million, while Recreational Vehicles segment net sales declined 2.4% Y/Y to $175.3 million.

At the end of the second quarter of 2025, the specialty vehicles segment’s backlog stood at $ 4.28 billion, and the recreational vehicles segment’s backlog came in at $ 267.9 million.

Adjusted EBITDA stood at $58.9 million versus $37.5 million a year ago. Adjusted EPS of 70 cents exceeded the street view of 62 cents.

As of April 30, net debt totaled $101.2 million, with $28.8 million cash on hand.

Dividend: The board disclosed its regular quarterly cash dividend per share of 6 cents, payable on July 11 to shareholders of record on June 27.

Buyback: In the quarter, the company repurchased around 2.9 million of its shares for $88.4 million. 

As of April 30, the company had shares worth approximately $142.4 million remaining under the current repurchase program. 

Outlook Revised: REV Group ( REVG ) updated FY25 guidance for net sales to $2.35 billion-$2.45 billion (vs. $2.3 billion – $2.4 billion) compared to an estimate of $2.38 billion and the adjusted net income to $112 million-$130 million (from $116 million – $140 million prior).

REV CEO Mark Skonieczny said the company plans “to accelerate certain capital investments to further our manufacturing throughput goals including a $20 million investment in our Brandon, South Dakota location.”

”Today we are updating our full year fiscal guidance with an expectation that year-to-date performance and sustained operational excellence provide a foundation to offset the potential impacts from tariffs.”

Price Action: REVG shares are up 6.88% at $39.78 premarket at the last check Wednesday.

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