Adjusted EPS of $0.35 beat the consensus of $0.23.
The increase in consolidated net sales was primarily due to higher net sales within the Fire and emergency and Commercial segments, including price realization.
Gross profit soared 18.3% to $80.2 million. Gross margin expanded by 40 basis points to 11.79%
Q3 net income was $14.9 million compared to net income of $9.5 million in the prior year quarter.
Adjusted EBITDA was $39.4 million compared to $29.5 million in the prior year quarter.
The company’s backlog increased to $4.136 billion at the end of the quarter, compared with $3.936 billion a year ago.
REV Group held cash and equivalents of $11 million, with a net debt of $168 million.
REV Group had $355.9 million available under its ABL revolving credit facility as of July 31, 2023.
“We remain focused on execution and advancement of REV Drive lean initiatives designed to reduce manufacturing complexity, improve efficiency, and increase throughput,” REV Group CEO Mark Skonieczny said.
Dividend: REV Group declared a quarterly cash dividend of $0.05 per share of common stock, payable on October 13, to shareholders of record on September 29.
FY23 Outlook: REV Group increased its FY23 outlook.
The company sees FY23 sales in the range of $2.55 billion-$2.6 billion (prior view: $2.45 billion-$2.55 billion). The street view is at $2.53 billion.
The company sees Adjusted EBITDA of $135 million-$145 million (prior view: $120 million-$135 million).
REV Group expects an Adjusted net income of $63 million-$73 million (prior view: $48 million-$62 million).
Price Action: REVG shares are trading higher by 8.70% to 14.00 premarket on the last check Wednesday.