REV Group (REVG) AI Stock Analysis

• Market Cap: $2.63B
• Dividend Yield: 0.47%
• Average Volume (3M): 767.11K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.45
• Revenue Growth: -3.17%
• EPS Growth: -49.47%
• Country: US
• Employees: 5,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.79
• Shares Outstanding: 48,798,332
• 10 Day Avg. Volume: 956,523
• 30 Day Avg. Volume: 767,109
• PEG Ratio: 0.01
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 56.06
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 13.76
• 1Y Price Target: $61.67
• Price Target Upside: 20.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $59.00 ▲(15.08% Upside)

REV Group's overall stock score is driven by strong financial performance and a positive earnings call outlook, highlighting significant growth and strategic investments. Technical analysis indicates potential short-term weakness, and valuation metrics suggest the stock is relatively expensive. Despite challenges in the RV segment and tariff impacts, the company's strategic initiatives and financial health support a favorable long-term outlook.

Positive Factors

Manufacturing Expansion

The facility expansion will increase production capacity, supporting future growth and meeting rising demand for custom and semi-custom vehicles.

Cash Flow and Share Repurchase

Robust cash flow and share repurchases reflect strong financial health and a commitment to returning value to shareholders, enhancing investor confidence.

Specialty Vehicles Segment Growth

The growth in the specialty vehicles segment indicates strong demand and effective market positioning, supporting long-term revenue stability.

Negative Factors

Non-Motorized Business Exit

Exiting non-motorized categories may reduce product diversity, potentially limiting market reach and affecting long-term revenue streams.

Recreational Vehicle Segment Decline

The decline in the recreational vehicle segment highlights challenges in this market, which could impact overall revenue and profitability if not addressed.

Revenue Growth Volatility

Volatile revenue growth can create uncertainty in financial projections, potentially affecting long-term strategic planning and investor confidence.

REV Group Business Overview & Revenue Model

Company Description

REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, and Ladder Tower brands; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brands. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Capacity, ENC, and Lay-Mor brands. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade, Midwest, and Lance brands; and produces a range of custom molded fiberglass products for the heavy-duty truck, RV, and broader industrial markets. The company sells its products to municipalities, government agencies, private contractors, consumers, and industrial and commercial end users through its direct sales force or dealer network. The company was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. REV Group, Inc. is based in Brookfield, Wisconsin.

How the Company Makes Money

REV Group generates revenue primarily through the sale of its specialty vehicles, which are tailored to the needs of specific industries such as emergency services, commercial transportation, and recreational activities. The company has multiple key revenue streams, including new vehicle sales, parts sales, and service offerings. New vehicle sales account for a significant portion of its earnings, driven by demand for fire trucks, ambulances, and RVs. Additionally, the aftermarket parts and service segment contributes to ongoing revenue through maintenance and repair services, which are essential for keeping vehicles operational. REV Group also engages in strategic partnerships with various organizations and government bodies, enhancing its market presence and facilitating access to public sector contracts. The company’s focus on innovation helps to differentiate its products, allowing it to capture a larger share of the market.

REV Group Financial Statement Overview

Summary

REV Group demonstrates solid financial performance with positive revenue growth and strong cash flow metrics. The company maintains a stable balance sheet with manageable leverage and effective equity utilization. Profitability margins suggest potential for operational improvements, but overall financial health is strong.

Income Statement

REV Group's income statement shows a solid performance with a TTM gross profit margin of 14.43% and a net profit margin of 4.51%. Revenue growth is positive at 2.81% TTM, indicating a recovery from previous declines. However, the EBIT and EBITDA margins are relatively modest, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.28 TTM, indicating manageable leverage. The return on equity is strong at 26.85% TTM, showcasing effective use of equity. However, the equity ratio is not explicitly provided, limiting a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 25.22% TTM and a strong free cash flow to net income ratio of 85.74%. The operating cash flow to net income ratio is healthy at 46.55%, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40B	2.38B	2.64B	2.33B	2.38B	2.28B
Gross Profit	346.00M	297.30M	316.10M	247.50M	291.00M	228.10M
EBITDA	182.70M	394.30M	113.00M	69.00M	120.10M	19.80M
Net Income	108.00M	257.60M	45.30M	15.20M	44.40M	-30.50M
Balance Sheet
Total Assets	1.22B	1.21B	1.41B	1.34B	1.24B	1.31B
Cash, Cash Equivalents and Short-Term Investments	36.00M	24.60M	21.30M	20.40M	13.30M	11.40M
Total Debt	107.80M	118.00M	187.40M	250.30M	234.90M	367.50M
Total Liabilities	831.70M	777.90M	912.40M	888.30M	719.50M	840.00M
Stockholders Equity	387.30M	435.10M	498.00M	456.30M	518.80M	472.30M
Cash Flow
Free Cash Flow	199.60M	25.80M	93.70M	66.80M	133.60M	38.90M
Operating Cash Flow	232.80M	53.40M	126.50M	91.60M	158.30M	55.70M
Investing Cash Flow	21.00M	348.50M	-29.90M	-14.80M	-10.20M	1.70M
Financing Cash Flow	-268.30M	-398.60M	-95.70M	-69.70M	-146.20M	-49.30M

REV Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REVG, the sentiment is Negative. The current price of 51.27 is below the 20-day moving average (MA) of 57.25, below the 50-day MA of 57.53, and above the 200-day MA of 43.22, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 33.18 is Neutral, neither overbought nor oversold. The STOCH value of 27.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REVG.

REV Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALG	―	$2.16B	18.20	11.30%	0.68%	-4.91%	-7.08%
TEX	―	$3.02B	19.53	7.85%	1.44%	4.60%	-65.73%
ASTE	―	$1.06B	23.32	7.02%	1.09%	1.17%	―
OSK	―	$7.80B	12.17	15.42%	1.59%	-2.28%	-0.53%
REVG	―	$2.63B	28.41	35.30%	0.47%	-3.17%	-49.47%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HY	―	$636.92M	28.84	4.39%	3.92%	-7.11%	-87.41%

REV Group Corporate Events

REV Group Announces Merger with Terex Corporation

On October 29, 2025, REV Group entered into a definitive merger agreement with Terex Corporation to form a leading specialty equipment manufacturer. The merger, combining complementary portfolios, is expected to unlock $75 million in synergies by 2028 and create a diversified leader in emergency, waste, utilities, environmental, and materials processing equipment. Terex plans to exit its Aerials segment, further reducing its exposure to cyclical markets. The transaction is anticipated to close in the first half of 2026, subject to shareholder and regulatory approvals.

The most recent analyst rating on (REVG) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on REV Group stock, see the REVG Stock Forecast page.

REV Group’s Earnings Call: Optimism Amid Challenges

The recent earnings call for REV Group, Inc. painted a picture of optimism, highlighting significant strides in manufacturing efficiency, financial performance, and strategic investments. Despite these positive developments, the company faces challenges, particularly in the RV segment and from tariff impacts, which continue to pose hurdles.

REV Group Reports Strong Q3 2025 Results

REV Group, Inc., a prominent manufacturer of specialty and recreational vehicles, operates primarily in the United States, offering customized vehicle solutions for public services and commercial infrastructure. The company has reported a robust financial performance for the third quarter of fiscal 2025, with significant growth in net sales and net income compared to the previous year. The Specialty Vehicles segment, in particular, showed strong performance, contributing to the overall increase in net sales and adjusted EBITDA.