REV Group Fires on All Cylinders: Q2 2025 Earnings Reflect Strength and Resilience
REV Group, a leading manufacturer of specialty vehicles, recently reported strong second-quarter performance that reflects the company's operational transformation efforts. In a conference call to discuss the earnings, REV Group President and CEO Mark Skonieczny highlighted the sustained year-over-year increase in manufacturing throughput at the majority of the company's fire plants.
The fire business has been a central focus for REV Group over the past several years, with production increasing by nearly 30% from 2022 run rates in fiscal 2023 and 2024. Despite a more normalized production ramp environment and a heavier mix of complex ambulance units, the Fire Group continued to accelerate shipments in the second quarter.
Skonieczny noted that the Fire Group had caught up with the Ambulance Group in terms of productivity gains and plant efficiency during the quarter. This alignment was achieved through continued momentum in manufacturing efficiency programs, including equipment upgrades, process optimization, workforce training, and lean initiatives.
The improved throughput at the fire plants directly translated into higher volumes, which contributed to meaningful earnings growth versus the prior year. The Ambulance Group also made significant progress, with a mix shift from vans to higher-content modular units progressing more rapidly than anticipated.
REV Group's utilization of lean principles for daily operations drove higher efficiency and reduced production cycle times, enabling quicker delivery. This efficiency translated into higher volumes and contributed to earnings growth. Looking ahead, the company remains confident in its ability to continue scaling efficiently and leveraging centers of excellence across its diverse footprint as demand continues to evolve.
The supply chain environment remains dynamic due to uncertainty regarding tariffs, but REV Group's inventory levels entering the second quarter minimized impacts related to tariff increases within the quarter. The company's US-based manufacturing facilities, sales in the US, and sourcing of raw materials from large parts of the country further reduced exposure to global trade uncertainties.
REV Group's focus on operational excellence programs, product innovation across all its businesses, and continued investment in people and equipment positions the company for sustainable growth. Skonieczny emphasized that this foundation will continue to pay dividends not only in terms of output but also in quality and cost discipline.
