REV Group, Inc., a manufacturer of specialty and recreational vehicles, reported results Wednesday for the first quarter of 2024.
Consolidated net sales in Q1 were $586.0 million, representing an increase of 0.4% compared to $583.5 million for Q1 2023. The increase in consolidated net sales was primarily due to higher net sales, including price realization within the Specialty Vehicles segment, partially offset by lower net sales in the RV segment.
The company’s first quarter 2024 net income was $182.7 million, or $3.06 per diluted share, which included a $257.5 million gain on the sale of Collins Bus, partially offset by higher income tax expense, compared to a net loss of $13.5 million, or $0.23 per diluted share, in the first quarter 2023. Adjusted net income for the first quarter 2024 was $14.7 million, or $0.25 per diluted share, compared to adjusted net income of $6.9 million, or $0.12 per diluted share, in the first quarter 2023.
Adjusted EBITDA in the first quarter 2024 was $30.5 million, compared to $21.3 million in Q1 2023. The increase in adjusted net income and adjusted EBITDA during the quarter was primarily due to higher contributions from the Specialty Vehicles segment, partially offset by lower results in the RV segment.
“We are pleased that first quarter results demonstrate continued momentum of previously announced pricing actions and operational improvements, resulting in solid year over year margin improvements and throughput increases within the Specialty Vehicles segment, which contributed to our strong first quarter earnings,” REV Group Inc. President and CEO Mark Skonieczny said. “We believe our first quarter’s results provide a solid foundation for delivering on our updated guidance and positions us for continued growth throughout the year.”
Recreational Vehicles Segment
RV segment net sales were $169.4 million in Q1 2024, a decrease of $56.6 million, or 25.0%, from $226.0 million in the first quarter 2023. The decrease in net sales compared to the prior year quarter was primarily due to decreased unit shipments, an unfavorable mix of motorized units, and increased discounting, partially offset by price realization. The RV segment backlog at the end of Q1 2024 was $376.7 million, a decrease of $611.4 million compared to $988.1 million at the end of Q1 2023. The decrease was primarily the result of production against backlog, order cancelations, and lower order intake in certain product categories.
RV segment adjusted EBITDA was $11.6 million in Q1 2024, a decrease of $12.7 million, or 52.3%, from $24.3 million in Q1 2023. The decrease was primarily due to lower unit shipments, an unfavorable mix of motorized units, increased discounting, and inflationary pressures, partially offset by price realization.
For the full earnings report from REV Group, click here.