REV Group, a manufacturer of specialty and recreational vehicles, reported results for the three months ended July 31 (third quarter 2024).
Consolidated net sales in the third quarter 2024 were $579.4 million, compared to $680 million for the three months ended July 31. Net sales for the third quarter 2023 included $45.9 million attributable to Collins. Excluding the impact of the Collins divestiture, net sales decreased $54.7 million, or 8.6% compared to the prior year quarter. The decrease, excluding the impact of Collins, was primarily due to lower net sales in the RV segment, partially offset by higher net sales in the Specialty Vehicles segment.
The company’s third quarter 2024 net income was $18 million, or $0.35 per diluted share, compared to net income of $14.9 million, or $0.25 per diluted share, in the third quarter 2023. Adjusted Net Income for the third quarter 2024 was $24.8 million, or $0.48 per diluted share, compared to Adjusted Net Income of $20.9 million, or $0.35 per diluted share, in the third quarter 2023. Adjusted EBITDA in the third quarter 2024 was $45.2 million, compared to $39.4 million in the third quarter 2023. Adjusted EBITDA for the third quarter 2023 included $9.2 million attributable to Collins. Excluding the impact of the Collins divestiture, Adjusted EBITDA increased $15.0 million, or 49.7% compared to the prior year quarter. The increase was primarily due to the higher contribution from the Specialty Vehicles segment, partially offset by lower results in the Recreational Vehicles segment.
“We are pleased with the results of the Specialty Vehicles segment, which delivered double digit Adjusted EBITDA margin performance in the third quarter,” REV Group Inc. President and CEO, Mark Skonieczny, said. “Profitability benefited from another quarter of sequential and year-over-year improvements within the fire and ambulance businesses. The continued momentum demonstrated by these businesses positions us well for the future. Within the Recreational Vehicles segment, market conditions remain challenged, however, we continue to be proactive in managing our cost structure to align with end market demand and deliver operating margins in line with our expectations.”
RV Segment Highlights
Recreational Vehicles segment net sales were $147.4 million in the third quarter 2024, a decrease of $67.1 million, or 31.3%, from $214.5 million in the third quarter 2023. The decrease in net sales compared to the prior year quarter was primarily due to decreased unit shipments and increased discounting. Recreational Vehicles segment backlog at the end of the third quarter 2024 was $240.3 million, a decrease of $168.3 million compared to $408.6 million at the end of the third quarter 2023. The decrease was primarily the result of lower order intake in certain categories, unit shipments against backlog, and order cancelations.
Recreational Vehicles segment Adjusted EBITDA was $9.4 million in the third quarter 2024, a decrease of $9.0 million, or 48.9%, from $18.4 million in the third quarter 2023. The decrease was primarily due to lower unit shipments, increased discounting, and inflationary pressures, partially offset by cost reduction actions.
