Brookfield, Wis.

REV Group, Inc. (NYSE:REVG) reported third-quarter earnings that exceeded estimates but fell short on revenue, leading to a 12% drop in shares during early trading.

The specialty vehicle manufacturer posted adjusted earnings per share of $0.48, surpassing analyst expectations of $0.42. However, revenue was announced at $579.4 million, missing the $618.7 million consensus estimate and showing a 14.8% Year-over-Year decline.

REV Group has revised its full-year 2024 revenue outlook to $2.35-2.45 billion, which is below the expected $2.44 billion. The company attributed this adjustment to ongoing challenges in its Recreational Vehicles segment.

CEO Mark Skonieczny acknowledged that “market conditions remain challenged” in the RV business but emphasized the company’s proactive management of costs to match end-market demand.

Conversely, the Specialty Vehicles segment showed positive performance with double-digit adjusted EBITDA margins, and Skonieczny noted improvements in the fire and ambulance businesses both sequentially and Year-over-Year.

The net income for the third quarter increased to $18 million, up from $14.9 million a year ago, while the adjusted EBITDA rose to $45.2 million from $39.4 million, excluding the effects of a divested business.

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