Rev Group, a manufacturer of specialty vehicles and aftermarket parts, has announced a significant increase in sales for the fiscal third quarter. Despite a decline in sales for their recreational vehicles unit, the company’s overall performance was boosted by robust demand for fire trucks, ambulances, and school buses.
For the three months ended July 31, Rev Group reported a profit of $14.9 million, or 25 cents a share, compared to $9.5 million, or 16 cents a share, in the same period last year. Adjusted earnings for the quarter were 35 cents a share, exceeding analysts’ expectations of 25 cents a share.
The company’s sales also experienced substantial growth, reaching $680.0 million, up from $594.8 million year-over-year. This surpassed analysts’ projections of $627.2 million.
Rev Group saw remarkable sales performance in its Fire & Emergency segment, with revenues soaring over 40% to $322.9 million. This increase was attributed to the alleviation of supply-chain challenges. The Commercial unit, which sells school buses, street sweepers, and other vehicles, also witnessed strong growth, with sales amounting to $143.3 million, a 29% increase.
However, sales in the Recreation unit declined by nearly 16% to $214.5 million due to decreased shipments and the impact of discounting on performance. Additionally, customer cancellations led to a decrease in the unit’s backlog.
Overall, Rev Group’s strong sales growth in the third quarter is an encouraging sign for the company’s future prospects.