NYSE$REVG

REV Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a net loss for the second quarter of 2022, impacted by supply chain challenges and restructuring charges, while backlog remained strong.

REV Group reported a decrease in net sales and a net loss for the second quarter of 2022, primarily due to supply chain disruptions and lower sales in the Fire and Emergency and Commercial segments. However, the company's backlog reached a record $3.6 billion, driven by strong order intake. The company updated its full-year fiscal 2022 outlook, reflecting ongoing supply chain challenges.

  • Net sales decreased to $576.3 million compared to $643.6 million in the prior year quarter.
  • Net loss was $2.3 million, compared to net income of $20.6 million in the prior year quarter.
  • Adjusted EBITDA was $23.8 million, compared to $45.5 million in the prior year quarter.
  • Record backlog of $3.6 billion driven by strong order intake.

Headline financials

Total Revenue

$576M

Previous: $644M-10.5%
EPS (adj)

$0.17

Previous: $0.39-56.4%
Adjusted EBITDA

$23.8M

Previous: $45.5M-47.7%
Capital Expenditures

-$8.5M

Previous: -$8.6M+1.2%
Free Cash Flow

$18.9M

Previous: $28.5M-33.7%
Net Income

-$2.3M

Previous: $20.6M-111.2%
Operating Income

$900K

Previous: $34.7M-97.4%
Gross Profit

$57.1M

Previous: $87.4M-34.7%
Cash & Equivalents

$5.9M

Previous: $7.7M-23.4%
Total Assets

$1.29B

Previous: $1.29B-0.5%
Stock-Based Comp

$2.2M

Previous: $1.5M+46.7%

Revenue & EPS history

REV Group · Revenue · Quarterly

$576M

Q2 2022-10.5%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

REV Group · $486M total across 2 segments · Q2 2022

  • Specialty Vehicles
    $245M-20.4%
  • Recreational Vehicles
    $241M+1.3%

Forward guidance

The company updated its full-year fiscal 2022 outlook to net sales of $2.25 to $2.4 billion, net income of $14 to $35 million, Adjusted Net Income of $43 to $62 million, Free Cash Flow of $58 to $70 million, and Adjusted EBITDA of $100 to $120 million.

Tailwinds

  • Net Sales: $2.25 to $2.4 billion
  • Net Income: $14 to $35 million
  • Adjusted Net Income: $43 to $62 million
  • Free Cash Flow: $58 to $70 million
  • Adjusted EBITDA: $100 to $120 million

Headwinds

  • Supply chain challenges are expected to continue into calendar year 2023.
  • Shortages of critical parts and chassis have negatively impacted performance.
  • Lower net sales in the Fire and Emergency segment.
  • Lower net sales in the Commercial segment.
  • Net loss reported for the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

-0.4%

Avg return

Earnings day

+10.7%

Avg return

5 days after

+12.7%

Avg return

30 days after

54%

22 / 41 earnings

Positive

+24.8%

Q1 2021

Best reaction

-26.5%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025+5.8%+6.3%+20.6%
Q3 2025+12.5%+19.8%+4.2%
Q2 2025+15.0%+23.4%+33.1%
Q1 2025+2.4%+11.8%+7.3%
Q4 2024+14.8%+15.3%+9.9%
Q3 2024-14.2%+10.0%+14.5%
Q2 2024+11.0%+10.2%-0.6%
Q1 2024-6.6%-11.6%+12.9%
Q4 2023+9.6%
Q3 2023+7.5%
Q2 2023+9.6%
Q1 2023+3.0%
Q4 2022-3.8%
Q3 2022+7.3%
Q2 2022-4.8%
Q1 2022+5.9%
Q4 2021-18.5%
Q3 2021-10.4%
Q2 2021-1.0%
Q1 2021+24.8%
Q4 2020-7.6%
Q3 2020-4.3%
Q2 2020-12.2%
Q1 2020+7.3%
Q4 2019+8.0%
Q3 2019-21.1%
Q2 2019-7.5%
Q1 2019+10.2%
Q4 2018-26.5%
Q3 2018-15.2%
Q2 2018-14.6%
Q1 2018-11.6%
Q4 2015+4.6%
Q4 2017+3.7%
Q3 2017+4.6%
Q3 2016+4.6%
Q2 2016+3.1%
Q2 2017+1.2%
Q1 2017-4.8%
Q1 2016-4.8%
Q4 2016-4.8%
Q3 2015

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