REV Group, manufacturer of specialty vehicles, reported results for the three months ended April 30.
Consolidated net sales in the second quarter 2024 were $616.9 million, compared to $681.2 million for the three months ended April 30, 2023. Net sales for the second quarter 2023 included $46.9 million attributable to Collins. Excluding the impact of the Collins divestiture, net sales decreased $17.4 million, or 2.7% compared to the prior year quarter. The decrease 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 second quarter 2024 net income was $15.2 million, or $0.28 per diluted share, compared to net income of $14.2 million, or $0.24 per diluted share, in the second quarter 2023. Adjusted net income for the second quarter 2024 was $20.9 million, or $0.39 per diluted share, compared to adjusted net income of $20.8 million, or $0.35 per diluted share, in the second quarter 2023.
Adjusted EBITDA in the second quarter 2024 was $37.5 million, compared to $41.9 million in the second quarter 2023. Adjusted EBITDA for the second quarter 2023 included $10.2 million attributable to Collins. Excluding the impact of the Collins divestiture, adjusted EBITDA increased $5.8 million, or 18.3% compared to the prior year quarter. The increase was primarily due to higher contribution from the specialty vehicles segment, partially offset by lower results in the RV segment.
“We are pleased to have delivered another strong quarter of operating results,” said Mark Skonieczny, REV Group president and CEO. “We continue to experience robust demand in our fire and ambulance businesses and remain focused on operating initiatives that drive throughput improvements across our manufacturing sites. The specialty vehicles segment results demonstrate that these initiatives are taking hold and continue to build from prior quarters’ momentum. Within the recreational vehicles segment, we continue to be proactive in managing our cost structure to align with end market demand and delivered operating margins in line with our expectations. The progress we have made across the enterprise provides us confidence in our ability to deliver our full-year fiscal guidance.”
Recreational Vehicles Segment Highlights
RV segment net sales were $179.7 million in the second quarter 2024, a decrease of $76.9 million, or 30.0%, from $256.6 million in the second quarter 2023. The decrease in net sales compared to the prior year quarter was primarily due to decreased unit shipments and increased discounting, partially offset by price realization. RV segment backlog at the end of the second quarter 2024 was $274.7 million, a decrease of $220.3 million compared to $495.0 million at the end of the second quarter 2023. The decrease was primarily the result of lower order intake in certain categories, unit shipments against backlog, and order cancelations.
RV segment adjusted EBITDA was $12.1 million in the second quarter 2024, a decrease of $17.0 million, or 58.4%, from $29.1 million in the second quarter 2023. The decrease was primarily due to lower unit shipments, increased discounting, and inflationary pressures, partially offset by price realization and cost reduction actions.
For the full earnings report from REV Group, click here.