REVG - Earnings call transcript Q1 2025

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Operator

Greetings, and welcome to the REV Group's First Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Drew Konop, Vice President, Investor Relations. Thank you, sir.

You may begin.

Drew Konop

Good morning, and thanks for joining us. our fiscal issued results. we today, first XXXX quarter Earlier well on release at and A the non-GAAP Investors as available the our measures available GAAP a reconciliations our financial to presentation section webcast copy of on being is website is from is investors.revgroup.com. Today's slide website. of as call to of that now refer Please presentation. slide X

disclaim at a or quarter we on forward-looking results which other next risks that to until These fiscal remarks answers update obligation to from to among our that to Our statements, differ subject all. others, and this fiscal such earnings call today are filed be will our stated. we've are include year make the implied quarter those SEC. include, risks unless described these call, or conference All expressed or cause updated with SEC year, quarterly We earlier references statements. Form forward-looking if any our to which actual the or by with statements, matters forward-looking may filings could not otherwise X-K in

Joining call as as and CFO, today President Campbell. is me Slide Amy to turn over the well to Please now Mark. I'll our Mark CEO, turn on X, the and call Skonieczny, our

Mark Skonieczny

Thank today's everyone you, call. to Drew, on and joining us good morning

financial outline clear towards growth. gave strategic and to our path our our earnings the vision quarter, which significant us moment take Before on we The call a past intermediate dive into Day, an occurred an new with in the quarterly opportunity hosted performance, to in disciplined reflect a earnings within event details event connection December. want and to which our I unveil of share important we that Investor targets,

and believe are built plan within value lies we in We success. X significant on operational place Importantly, execution. have achieve these walls, a a and team to and our of enhanced improvements foundation targets

due to investment a Group favorable described products the aligned with presents trends. well-diversified how macroeconomic we a of REV event, portfolio opportunity compelling During

demographic, positioned acquisitions. uniquely meet strong organic and the a to and emergency to a provide balance capital are positioned aging to that are that we sprawl, strategic as growth, through approach well consumers the the explore sheet urban freedom as an presented growth, approach allocation Investor vehicles comfort. for related to the to services, expanding We dividends, With repurchases, during strong outdoors Vehicles attractive demand provide Recreational mission-critical and disciplined benefit we a share and from essential to well shareholders in to population combination and returns are of to a continue to was Day, selective suited

quarter have cash positions first it, are us Day results strength even you more an only not EBITDA continue the already record on exited model long-term to of strategy but to creation. XXXX. and presentation our that our for the well organic were for we've on that not to typical bus resilience start on our The businesses also efficiency is year, impressive manufacturing that performance website. I'm This Investor with adjusts basis had our fiscal reflects X exceeded that an If the in business the delivering value pleased strong exceptionally seen available and seasonality. report adjusted results of

first year's guidance. The quarter as our achievement success for full serves of solid foundation a the

we years committed within this billion, are the about first visibility of to X throughput we value excited we for targets quarter, initiatives, for backlog our As path maintaining have as to ability to momentum. Exiting and schedule, our confident of the our and fiscal lean Vehicles in an providing continue opportunity on more discipline. optimize a materials This continuous that financial we've projects. to order segment. the profitability to resources, $X.X already ability execute X.X drive continue pipeline increased to remains strong ahead and through backlog and efficiently, place, our to truck-by-truck meet set, the ability improvement remain drive continue in production detailed also We're of provides at in sustained shareholders. Specialty initiatives confidence achieve to providing level our With targets the plan a we productivity demand margin manufacturing our through orders

China, costs. our like our our and will I would In the operations spend enacted regards supply aluminum our of Canada, Now from and up are tariffs. our material of and purchases I primarily about to recently assembly total from majority purchase nature, direct through our the direct import indirect come base. you tariffs, subassemblies to therefore raw only that approximately address exposure remind is of make and in we material X% material steel Mexico, exposure to X% on the

to it potential improved to greatly tariffs has been initial As since of relates chain indirect disruptions our impacts, in XXXX. ability tariff navigate supply rounds the

a sole-source reducing implemented of key strategy risk several components, multi-sourcing past the exposures. Over for the we have years,

continue sourcing cost our across direct provide opportunities. spend or mitigation that also We may alternative to material pursue tariff options improvement

active supply team supply based Our base origins. been understand the our their has in discussions on supply with exposure to chain potential

their of tariffs quantification available as are to value tariffs application enacted. chain calculate given in difficult risk the uncertainty of to products is raw materials specific and and However, broader within alternatives

strategies. to continue areas Our proactive implement of and mitigation supply chain monitor team exposure will

are overall On of for notable Vehicle the January, for apparent, a supply environment strong our well RV net approximately in decline momentum fortified chain remain our the position a saw attendance, to A for consumers' United retail models, a a growth. sales significant a experienced backlog, Recreational and macroeconomic activities, broader in higher SuperShow outside X% the show segment. Class the increase Florida lineup C also Holiday commercial our the and navigating across appreciation sales REV products sales, of continued showcasing including event confidence. In Class margin RV Despite increases of multiple by on commitments We proved award-winning Rambler, Palisade. Renegade new driven sales was motorhomes sales Coach brands. delivering of us States. in focused its be and Group's in strong diverse and XXth Fleetwood on portfolio annual show with strong interest RV, Designs's Super American side, long-term while well disciplined to the in contributed Midwest Overall, our with Travel new previous B to a on Camper's new Squire Campers Automotive sales. boost built Trailers the compared including performed Lance vans, motorhomes various Class Truck and year. rising sales overall Meanwhile, line, sizes. platform with Heritage C

the remains While positioning. market product response the and customer for confidence strategy the retail in and activity positive segment's market increased reinforced our products challenged, RV

capital dealers future products. Despite the growth. We continued innovation representing show our to partnerships underscores value commitment external balanced great drive approach company in to shareholders delivering to we had remains focused We also growth. challenges, attribute a to to our our success on at the while invest dealer allocation to maintaining believe the and flexibility

strength, the $XXX to in just quarter, outstanding. strategy, we capital the on our recent over stock's million our authorization, given repurchases common use our shares, ability sustainable of attractive have the an were X% financial share commenced returns. of repurchasing the $XX.X long-term Within We repurchases the believe and to shares quarter, by we demonstrate valuation million and shareholders confidence generate XXX,XXX they within returning or approximately

totaling shares quarter the purchase purchased $XX.X through have subsequent February to Friday, XXX,XXX first million. and an XXth, to continue shares, We additional

repurchase capital the flexibility remains these million approximately on program, deploy share to purchases, which allows management continued our With opportunistically. $XXX

Finally, remain our on margins, focused improving we driving optimizing existing and efficiency, backlog.

with our customer that products We expectations. orders executing maximize backlog, meet we and discipline are while that returns against booked ensuring delivering high-quality

improved identifying confidence streamlining cost in Our approach operations, made of performance. all financial chain resilience, our efficiencies, contributing meaningful achieving teams to progress are in have disciplined enhancing supply sustainable reinforces growth. This and which

XXXX believe us are momentum both are the remain our market across We building for segments, While fiscal our and outlook. today short-term dynamic success. conditions positions we long-term we operating reaffirming

from million, Turning to quarter were the $XXX sales of Slide decrease prior First a million year. X $XX

the business in businesses. As sales included the in fiscal of we The of year's of Collins prior attributed October. ENC million bus a to XXXX manufacturing the divestiture January and net Bus with bus $XX.X these and sale exited in quarter wind-down reminder,

exceeded businesses, was in the Vehicle offset or that lower EBITDA quarter initiatives Specialty past both the in expectations fire within increases million by demonstrate compared Vehicles pleased in growth sales increased driven teams divested quarter $XX.X million. The was growth of segment. am impact enacted our Recreational throughput $XX.X the the the adjusted sales in and over Excluding years. Record and the X continue prior to net to these increased ambulance revenue partially Year-over-year first of revenue sales that by the segment bus groups. consolidated various Vehicle I of year quarter. have $X.X X.X% million, success Specialty the been

$XX.X the Vehicle driven Specialty XX%. million, partially lower which generated growth impact the offset quarter, bus Excluding earnings businesses, in adjusted segment, segment. increased $X.X prior by in year of Recreational the EBITDA Year-over-year earnings was million Vehicle the by divested or

that year, past the catching I Fire up to and is the Ambulance in plant gains of terms Over efficiency. productivity group commented have group the

the lean Ambulance quarter foundation activities. With I financials. solid progress this over performance. implement Slide to continue the to has in exiting the to plant year-over-year segment X turn Over turn X, provide additional and Amy I'll of believe past equal and Fire on made impressive Fire footing, quarters, resulting great second that will year, be which at efficiencies that, stability for with please detailed operating a call to

Amy Campbell

Mark. you, Thank

to the $XXX.X were Vehicle prior million, a Specialty compared decrease of quarter year. First million sales $XX segment

Mark divested businesses the included were million the prior mentioned, that of fiscal manufacturing As XXXX. year's sales within $XX.X to net quarter bus attributable

to sales realization. businesses, carry to of was trucks an higher $XX.X was prior impressive, segment Excluding sweepers. Adjusted the price of X.X% $X million first included the fire impact mix and when sales $XX.X by businesses. apparatus price divested compared offset million sales the prior partially $X.X in increased record, year selling prior versus of ambulance EBITDA primarily a of Type of to vans, increase Making were this favorable average bus more which than with EBITDA along the even net terminal units, modular increased attributable by The million, quarter. sales and due net quarter million X increasing segment year. a increased lower of the divested quarter or adjusted year's These industrial the

increased offset favorable for year and adjusted margin primarily Vehicles' due increase of the to $XX.X partially EBITDA put a quarter a was ambulance segment place in price record trucks of realization mix pressures. of inflationary or units, industrial The favorable by in of resulted also that fire from contribution X.X% Vehicles' apparatus, prior Excluding with lower first earnings sweepers is bus, XXX%. sales EBITDA million, along Specialty the and in sales adjusted Specialty terminal initiatives performance. increased

improved businesses, Excluding points XXX that and improved realization price the by have basis impact primarily bus the segment driven of operations throughput. margin year-over-year, increased

workforce productivity better apparatus resources Specialty grew demand improved to XX% fiscal as range and increased The to profitability. the Over principles, bus from optimizing were capital the line ambulances, also several for offset enhancements of Adjusting bus sales. initiatives, million and is low-double-digit included and with removal fire is segment units. improved backlog while high-single increase prior These and for the production data-driven production such Vehicle supply year. higher demand pressures for that of lower controls, on past of base outlook output, of chassis. chain a total, was backlog decision-making, components year-over-year growth include actions and that contributed along was trucks been with to of billion by manufacturing backlog forma related and continued Vehicle terminal sweepers. The along segment's $X.X street for top pass-through quarters, focus that has for contributed the have pro lean high-quality processes, adjusted year's management, pricing the to targeted investments, the against ENC to a $XX in delivering record. versus Specialty prior backlog XXXX cost solid inflationary for industry These partially and

total the of typical of are the expected expect approximately of $XXX.X we an our margin of fiscal approximately in in bus sales at revenue first year organic was be segment sales to of a and XXXX to the reminder, half, in for expected second XX% to to EBITDA. net a XX% adjusted half XX% with year million basis. increases $XX.X full XX% and And purposes, adjusted performance as XXXX seasonality. XX% on the in incremental EBITDA convert The net modeling Just million in line

C camper were Lance and primarily $XXX Turning our million, ] X.X%, respective registrations year's brand, towable quarter. of end most Class the the by for of sales that or volumes a related versus Class Despite with to our million [ Vehicles in shipments increased Recreational indicates first Class decreased and market to Class Slide sales result products, soft segment A demand. offset recent unit partially Class Survey and along shipments, over units. in product outperformed have last Stat units were period. Fewer $XX.X A, Lower shipments a X. B, the XX-month of their C motorized decline retail in categories Camper data decline trailing

net and Class align partially a to and remains driven our dealer a offset the Wholesale and retail was XX% market EBITDA While demand. or challenged, end million assistance for was decrease benefited of SuperShow. Adjusted the year. also taken quarter fixed with activity unit the of to wholesale year, decrease the exceed sales million, the by did assistance. better for of category volume, versus versus leading prior market quarter, in greater-than-expected A $X.X costs prior shipments primarily pressures, The RV and lower-than-expected by in increased primarily $X.X expectations dealer demand up the actions inflationary recreation the variable Tampa result from lower

the resulted of pleased The Segment has year-over-year the are soft a margin to prior to that year. the adjusted related while execute $XXX decrease primarily in million with end and maintaining of for backlog dealer market EBITDA quarter. over X.X% segment We is XX% margin shipments versus demand and a the past lower decremental XX% continued that year. wholesale achieved declined destocking discipline

overall wholesale segment health sales Over of and dealer retail the dealer improving and lots reducing same the inventories. on number units period, of outpaced shipments, the age

as and this Tampa at year's performed REV's dealers in to sales increased mentioned, attention well products retail SuperShow, resulting our attracted XXXX. Mark compared consumer for As

XXXX. Recreational full the improvement. we with dealer guidance original versus Recreation expectations December revenue the we While flat witness sales opportunity for an today until EBITDA fiscal to full this year and sustained selling continue Therefore, may segment upcoming the segment present in restocking to Vehicle approximately into retail year tempered provided for we season, adjusted our reaffirm be approach

activities million, in lower made operating by almost Turning to Year-to-date, end $XXX.X increase of the cash accounts customer from accounts payable, Slide an January X. was offset advances. XXXX. XX, of to $XX.X increase primarily compared incentive outflow included payments of million, Trade working increase an was during increased and $XX timing-related, receivable by which was an at $XXX.X period. driven management capital $XX million XXXX, fiscal on million partially million of the The

shares In first capital common bringing expenditures the XXX,XXX million hand. XX average we an addition, debt was million cash used of million, within of In million. first January spent repurchase $XXX.X we returned of price to to $X.X quarter. Net million to quarter first $XX.X the in on total cash totaling quarter cash dividends $XX.X including within million, $X.X as of on $XX.X This quarter, at the the shareholders the $XX.XX. paid also includes

the for maintained we with to $X.XX the April approximately addition, quarter's ample $XXX.X million share, In SEC XXth we cash credit XX. At a maturity record X-K Last facility, in on its available can liquidity March our revolving of month, of the end, February XX facility. declared ABL found ABL company details payable on strategic our and on refinanced to credit extending dividend XXXX, shareholders this quarterly with filed per common initiatives, be of the year. on

provided As our reaffirm year quarter today XXXX mentioned, XXXX fiscal guidance was earnings call. we fourth our that on previously full

fiscal forma year. Consolidated remains revenue $XXX $X.X at roughly expected low-double-digit pro the billion XXXX's excludes an bus to growth segment growth midpoint base line net guidance billion at in EBITDA. forma the adjusted XX% year divested in Vehicle billion, Net flat Vehicle billion of of XXXX $X.XX to or segment continue high-single sales expect Recreational revenue pro sales of Specialty We top to is EBITDA to mid-single-digit $X.X a million million the XXXX's range to the from Adjusted versus which sales. over be versus $XXX of guidance $XXX.X in pro forma are $X.X midpoint in increase businesses. the the versus of million,

was first XXXX. said, exceptional as start this quarter a Mark an we begin with As fiscal record

cost are commercial segment within demonstrated We and the momentum by Recreational continued pleased discipline the and containment Vehicle Specialty with Vehicles.

remainder to back year. I expect flow the earnings that, now our the for I stronger you. growth team deliver performance. close for and to to Thank We With free of the and want thanking to dedication and like operator their turn would throughout cash by strong healthy up open it it questions.

Operator

[Operator Instructions] the Shlisky Our first with question line comes from Davidson. of D.A. Mike

Michael Shlisky

for apologize background the noise. I

discussion some your to there. prepared I understood Mark, I remarks tariff want your So of first, make during sure

why issue You other said you just States. still I tariffs as a suppose, most forward. issue them are Canada can't I within how I'm broad Maybe not and for United to be REV macro. assembled a as whether be an is But X% big costs could detail and for just sure the us what today. will tariffs like understood the Mexico get that say very the going you are of of possible components see impacts do than you, you you tariff from -- it more give what little Group

Mark Skonieczny

I remarks, it's in said and think, fluid obviously my situation. I that's prepared why Mike, a

So steel geographies, direct again, I is, those only X% and our our direct across exposure aluminum said, X%. and is as then

CFO to suppliers highlighted look price/cost and And COVID strengthened ability that where remind spike, the a you lot we've to in and think in are there. reiterate, contracts, supply all that a X where positive we our I I X purchases, have X tariffs. I that the now. past was and actually we've like then But supply period. of during over United the which these we you want and the about we've only strategy we multi-sourcing better bigger We've in build that then during during about our talked our the expanded done feel fixed to initiatives even strengthen I last the X when years all Fire, have to base, are Also, going COVID, domestically we base saw COVID sourced. of subassemblies cycles to we our the when was I'd States, base the at our mitigate there. from assemble, our our of we majority through and supply again, do majority purchases So sitting inventory like were to the months longer-cycle actually from

second understand as is QX a see and it's we'll quarter, So the fluidity then exiting what really or that over we into develop QX is the more from going QX and what and really something to the determined exposure becomes tariff better front.

Michael Shlisky

on RV the sounds calendar, so hear, coming There look, like I at bigger okay. are but group, Moving in I'm to went surprised up Show. did of the here the to well pretty one shows Tampa Tampa some go ones more everything it on the think

You for I'm you you the that is mentioned what see to better group want wouldn't think guidance just business going in missing retail about I am figure just outlook you is Or to want missing out get increasing 'XX a there? trying enough still that this sales to better? guess be [indiscernible]. I about actual that that that on what's basically to in built-to-order wholesale see Wouldn't I'm your before get anyway. feel group. surprised, increase better sales to

Mark Skonieczny

have still outpacing relationship, right? destocking wholesale/retail X-to-X the over some think to retails few you get historic still back last had events, that been we but do want Because Yes, to see I quarters.

When end at look to think the guidance, weighted year. back it see. towards that's what the original the we want really you was of I heavily So

see are QX come in do through April QX look see QX, 'XX good our QX, show or see orders So But we the And bookings and least the as able we'll start here to exiting at that in essentially frame, through entering about. placed we talk orders model getting new hitting want feel that and the like factories. what March always we'll that those to be year. we QX

that then we'll the year better model And view obviously 'XX a 'XX year people are sell of get indication the 'XX unit, model placing our on on and product in really that's So the sitting through QX when inventories. QX. dealer and start

Michael Shlisky

one for last one Maybe me. Okay.

to I you maybe here. pricing even just in in high-single the XX, are from digits But raw a booked pricing that the If being or if your understand, fire then some the to to update based maybe tariffs, on guess of mid-single could emergency. us to tweak to 'XX, about talked of I your pricing things you've X-part prices digits on question control. orders I recently. the REV's on you've just thanks there's up assemblies the and that past, go for some want back go make of materials out ability you sure have and

Amy Campbell

Yes. Thanks, Mike.

trucks, to So products. the through sweepers, so look certainly for expect and what street large. cost also on on inflationary our have fire We increases are -- at we Vehicles. the on we cost several next contracts When for by are years all price recreation, and increases those these historically continue headwinds mid-single-digit pass Specialty can of and you pass some fixed-bid terminal chassis, ambulances, through on of we can commercial our And trucks.

Some them room contracts. With would we honored have us back, been the inflationary headwinds taking room to go strategic do defend the unknown to historically at unknown pricing have some increases. in though, over fixed-bid say were and we've our against but or disciplined that, price very some years commercial last any that those I time couple that of we to were strategy allow protect of that

contracts. unknown limited we're think, the I back some to in have, allowed fixed to back, But years when inflation is large, going reprice and there to what So and price for we've not some increases. go of full ahead knowing taken go those extent inflation ability ability by the those we've very limited

Operator

with Mig of line Baird. comes Dobre Our next question from the

Mircea Dobre

comment -- some for of Vehicles I'm in provided it backlog, at like amount made inflation. But pick that buffer a you Specialty you backlog. When what's I about real a you've your no want And there's talking here, look guess, business here. some have up sounds I and the mechanism, obviously on for there. to sizable repricing

maybe it. like of as how So calculated inflation? How something think few years? normal I'm is this have more past what of where if a may also backlog, right, are yet there, that's of thing. one Because of being the do to another good lot we've a here Is you going it be that's it cushion you that because debates terms held thing I to we're buffer, over Is start tariffs of here? a bad seen that to the have a you going in of that out inflation But see curious much forward. pulse

more So how comfortable get backlog? I got new can look, my the of enough it, is, terms that add I need I going coming currently X the do say, really really don't risk to have. years orders to point incoming we get X guess out. that in you you're orders until be to with in, not these backlog this in to given shipping And I've the to follow-up you where to

in now? do you're taking the that new on evaluate how the So orders risk you

Amy Campbell

certainly meeting to be. that at We Yes, what be. taking need this we teams annual orders the time looking trucks, are to so right? inflation for understanding need what one fire risk take around announced need the that and new working We're Municipalities we the ambulances. should the the in price on year and are discussing continue and we're what Mig, announce actively now, that they increase increase and price is this year, of should normally orders,

exposure increases I think on moving at our I the to too we of potential those many of limited. as recently And too when backlog. that the some and mentioned, we underway. And -- only you is about as direct is pieces just implications We increases metals look in direct point, exposure we work aluminum. Mark quantify really domestically, think full and have But talk the steel to source we've much tariff the geographies. can understand in prices go X% seen and any this there's forward. that go as obviously the So broader import at implications pretty that spot increases But tariff tariffs is uncertainty and

Mircea Dobre

sophisticated you're of a buyer But chassis.

look... good understand have that. I And You I'm on guess you to trying knowledge when

Amy Campbell

And can we through... pass

Mark Skonieczny

in Yes, mechanism, are Mig, cost. the our So that, just right? contracts a a contract pass-through, ambulance pass-through recall that's

Mircea Dobre

deal do with how we Fire, on that? But

Mark Skonieczny

we But working some Well, commercial by CoE. and on Fire, do. don't ours our have are exposure through But or we our with through operations. built the where CoE of Fire majority put the obviously, we a purpose-built of Majority our chassis. we're Spartan. is us But our it obviously

commercial that do have largest have purpose-built But some we chassis exposure So by us. we'd part to. again, the is

Amy Campbell

And components U.S. Those sourced U.S. the in the sourced from are

Mircea Dobre

do want ask guidance. the quarter itself Okay. I question and a about to

million. raising where relative curious somewhat the at came internal EBITDA to you in EBITDA above beat by if last up full but at I'm that consensus, When for also instance, guidance Your was year, your similarly case to a budget. consensus year relative looking the $X I'm ended time, similar posted was the and you

to not time. that do this chose You

that did So the there to EBITDA unchanged, uncertainty? of? fact And a additional be are we function how that your keeping Or of the that go aware expectation? curious, in factoring I'm we're to some quarter elements need relative maybe is other

Amy Campbell

than expectations. prepared our as Tampa well. Specialty coaches in A We We discounting some saw RV comments. the quarter, in nice better Vehicles our little some we first did saw had in and higher that advance wholesale the come show. for sales a in So Class of Mig, some And lower the orders also

risks and, we expectations in a outperform inflation. we unknown known those year. into say, And would It's the well, for nice guide did took quarter quarter. We consideration our into had early So the consideration as in first the around I taking the beat.

also And the half of known tariff what and still -- in We appropriate. I'd of unknown call, risks, have at I look range that known a to is bottom even range. you with to risk, the pathway top be a able to broad see when those, And the think half deliver we range.

time. beat And took tariffs talked this a quarter, and in that lot the and that, in range expect months We we account more the few get inflationary cost uncertainty. in and range, unknown the the forecast believe lot we got risks. from and pressures the some a of into ago about certainly certain that was So, a that weeks known appropriate increases business the We'll we at cost units, that range quarter. impacts next second few the update about of our

Mircea Dobre

question, order Specialty talked being Vehicles on final demand Fire. you resilient and My on intake, just about

following how time we've moderation maybe seeing tenor see ] from So fiscal you does about of order the at demand investment Coast point can past think in the that 'XX I you you've West the again, a for is [ any being extended impact has strong. you given been investors obviously, talk should guess seen QX? heard orders longer? where of really guys in the And in for how your Are and the you at backlog point rest about stronger here, benefit the business? because, Are wildfires, what demand

Amy Campbell

We've early we off at it's trends. Orders AOP. lumpy. they're orders. still about increases. too in out coming say And back that higher in down peaks, was look for they've I I is demand would L.A. orders above recently of you too California What fires. seen think, When expected of it it's to first our were normalizing -- orders the our at early trucks. long know to our We some placed the are while I think about S-XXX meaningfully than know. But fire seen talked quarter inbound if We've early. the came you in their certainly trucks, look long-term some come impact XXXX, have of nice article there in fire a too

they They're think last trends. above long-term did come I still year.

through our focus the We provide our in fire factories they the continue need. to increase customers work trucks to throughput, and backlog,

will It's some think to early will past? But see it higher normalized normalization. tell, continue level than that where was just we the in too to be Mig. I So

Operator

question the Goldman Revich next Our of Sachs. comes line from Jerry with

Jerry Revich

history I'm market the wondering if Amy, that look we you Fire, based would just on conversation history cycle the could at company's Mig. just share how where to just share units continue for to metrics you industry you you had just that the us higher in break When in above-trend on orders, with Fire your versus spoke out attribute we that this potentially you versus the versus track? Can industry you and do demand? is that think elevated

Amy Campbell

Yes.

on comments my industry So demand. specifically were

We have ago, years were X,XXX few closer to believe about off long-term it's trucks last year. but trend demand above from levels. X,XXX still fire of levels peaks industry We come seen a

off come a saw We X,XXX but really years level about we like to X,XXX ago, still share. of few market it's talk at So the last year. don't

seen be can lumpy. it it some I'll S-XXX think but I our leave program, there. we've benefits think from We've seen I

Jerry Revich

to product industry we Can historical that market You quarters on share mentioned levels. a update similar were weigh slow directionally? line levels that a in to towards ago couple if you stand orders on on enough. us Fair starting conversation Can ambulances? you have on where just of and want

Amy Campbell

I'd have normalize. And on Yes, pretty stayed say month. consistent. XXXX we seen market share levels has come product ambulance for line actually won't demand that industry out another

guess, just ambulance XXXX to next ask weeks We yet. have in the quarter, for X I industry me, volumes or So X Jerry. don't

Jerry Revich

stand you're comment probably in ago above that that still category? a from that does couple of normal Okay. But quarters

Amy Campbell

would be that my expectation. Yes,

Jerry Revich

And to range scenario happen higher, outcomes passing on moves then industry. X pretty higher on just tariff can than conversation direct of that on scenario the goods in the up consider would a bill just follow surcharge? say, if points and through up, that in just a exposure what there's let's the we our Obviously, you separately, folks think, of wide

company's So, just potential how response that curious, and you think scenario? about tail that in do risk the

Mark Skonieczny

surcharges one different where I I that in actually mechanisms earlier used, we can we've surcharge. could some we've back on one Certainly, and gone that contracts situations, that a applied and is think, we think there's select said Amy use.

Jerry. think like or surcharges, shut off the how tariffs see so to that do, price that them specifically probably exposure that COVID we'll during come track will able that and we we think indirect would the I in our come off as that's we'll outside then it, the I And quickly we're well. of piece we take as it did that as to we increases see what as So normal those increases can able that's be keep through or down,

think now to which last years, manage process, the years that to talked much I X been we've X So we've I about how well-equipped can't supply improvement made enough for reiterate I've we're the here. chain, but

entering being way a started. this I to when think for on were that lot we're ready our well COVID than So we more situation

Operator

Castillo question line Morgan next [Operator the Angel from Instructions] Our comes of with Stanley.

Angel Castillo Malpica

any maybe hearing to one, first in of to Obviously, to and here normalization forward given elasticity? you're maybe desire inflation? you announcements But of XXXX? volumes. mentioned potential thinking about the pull elasticity what of try are of quarter, was terms and as get here. order beyond increases expect uncertainty, some have some are the to back that any that strong customer pretty pass-through you in go customers in been the the wanted from to guess, orders price XXXX, What And/or ahead discussion the in do Just to orders there of of seems of those price you I seeing you price of what incremental terms

Amy Campbell

Yes.

as with are this lead normal extended Angel, think, from any their but a to of already early These at can which I'd are impacts going what too this times. be pretty unique on are buying It I that be is point pretty municipally-funded the feedback meaningful still obviously uncertain a price, the potential vehicles well. on have, based say, cycle industry. is patterns those extended, tariffs, customer to replacement really

would peaks, going the while been of be strong. that's that, I the I healthy, above years. last think signs right It's suggest case. to REV that it trends. come demand this over will be the underscores, So is cycle now consistent several think I continues keep think, really to And model And municipally-funded, they investment replacement for strong off long-term

Angel Castillo Malpica

switch And I to maybe allocation. to then capital wanted over

here also levels your but of continuation or the about Any, Could done capital your timing-wise Or anticipation a about allocation buyback, You broader fiscal think opportunities you of closer should started noted your you to give we develop pipeline M&A earlier? us update you've in moving an bolt-on how to just forward? of strong resuming I date. as to just being talk XQ repurchases there? opportunities, can pipeline guess, this And dynamic here? going

Amy Campbell

not quarter as continues Well, attractive the were plans to stock an to we entire our and certainly that We back detailed for buybacks. investment, the lay shares is first be. Yes. buying firmly out I'm believe do going throughout share

strategy, And to continue We're disciplined capital terms build going research. expect our allocation I And as in pipeline, and of be so our be that likely we move forward. part to of a continue do look, to will our strategic been M&A, and acquisition And right for think buyback. we in the the shareholder that time Group real value. REV find we've interim, a I the right clear believe of when drives we is use target share is until that capital we good

Operator

like time. closing questions We have the to comments. at management this no floor back would for now I further to over turn

Amy Campbell

call you, everyone, I joining think today. the that's it. thank for But

Operator

Ladies and today's conclude gentlemen, does teleconference. this

You this have day. time. may Thank you at your lines disconnect your a and wonderful for participation,

REV (REVG) 5 Mar 252025 Q1 Earnings call transcript