Slides
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FISCAL FOURTH QUARTER 2024 RESULTS DECEMBER 11, 2024
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2 CAUTIONARY STATEMENT & NON-GAAP MEASURES Disclaimers Note Regarding Non-GAAP Measures REV Group reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, m anagement believes that the evaluation of REV Group’s ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted Net Income , Free Cash Flow, Adjusted Free Cash Flow, and Return on Invested Capital, which are non-GAAP financial measures. Adjusted EBITDA represents net income before interest expense, income taxes, depreciation and amortization as adjusted for certain non-recurring, one-time and other adjustments which REV Group believes are not indicative of its underlying operating performance. Adjusted Net Income represents net income, as adjusted for certain items that we believe are not indicat ive of our ongoing operating performance. Free Cash Flow is calculated as net cash from operating activities minus capital expenditures, and Adjusted Free Cash Flow is calculated as net cash from operating activities, excluding transaction expenses and income taxes associated with divestiture activities, minus capital expenditures. Return on Invested Capital is calculated as net operating profit after tax divided by average invested capital, as adjusted for certain items that we believe are not indicative of our ongoing performance. REV Group believes that the use of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Adjusted Free C ash Flow, and Return on Invested Capital provides additional meaningful methods of evaluating certain aspects of its operating performance from period to peri od on a basis that may not be otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. See the Appendix to this presentat ion (and our filings with the SEC) for reconciliations of these non-GAAP measures used in this presentation to the most closely comparable financial measures calcu lated in accordance with GAAP . Cautionary Statement About Forward-Looking Statements This presentation contains statements that REV Group believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “strives,” “goal,” “outlook,” “guidance,” “target,” “seeks,” “projects,” “intends,” “forecasts,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this present ation and include statements regarding REV Group’s intentions, beliefs, goals or current expectations concerning, among other things, its results of opera tions, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate, including REV Group’s outlook and guidance for the full -year fiscal 2025 and its longer-term financial goals and targets. REV Group’s forward-looking statements are subject to risks and uncertainties, including those hig hlighted under “Risk Factors” and “Cautionary Note Regarding on Forward-Looking Statements” in REV Group’s public filings with the SEC and the other risk factors described from time to time in quarterly or annual reports on Forms 10-Q or 10-K, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are nei ther predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which only speak as of the date of this presentation. REV Group does not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise. 2
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3 FISCAL 2024 CONSOLIDATED RESULTS 1For Ex-Collins, results for Collins Bus (Collins) were removed in 2Q -4Q only in fiscal 2023. 1Q23 and 1Q24 remain in the Ex -Collins comparison; Collins was divested on January 26,2024. 2For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation. $ 2,638 $ 2,380 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 FY'23 FY'24 Net Sales1 ($m) $156.6 $162.8 5.9 % 6.8 % 0% 1% 2% 3% 4% 5% 6% 7% 8% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 FY'23 FY'24 Adjusted EBITDA1,2 ($m) 4Q21 ➢ Consolidated sales decreased $258 million ➢ Full year Adj. EBITDA2 increased $6.2 million Excluding Collins1: ➢ Net sales decreased $110.8 million, or 4.4%, year-over-year ➢ Adjusted EBITDA increased $39.0 million, or 31.5% ➢ +180 basis points Adjusted EBITDA margin expansion FY24 Highlights $2,491 Ex-Collins $123.8 Ex-Collins 5.0%
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4 FULL YEAR & FOURTH QUARTER FISCAL 2024 HIGHLIGHTS Appointed David C. Dauch to Board of Directors New $250M share repurchase authorization 20% cash dividend increase Specialty Vehicles segment Adj. EBITDA margin expansion Record Specialty Vehicles segment backlog & visibility Wind-down and sale of ENC transit bus business Fire & ambulance throughput above pre-pandemic levels
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5 FOURTH QUARTER FISCAL 2024 CONSOLIDATED RESULTS ¹ As reported, 2023 results includes results from Collins, which was divested on January 26, 2024. Collins contributed $54.2 million of net sales and $13.4 million of Adjusted EBITDA in Q4 2023. 2 For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation. $ 693.3 $ 597.9 $0 $200 $400 $600 $800 Q4'23 Q4'24 Net Sales1 ($m) $54.0 $49.6 7.8 % 8.3 % 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% $0 $10 $20 $30 $40 $50 Q4'23 Q4'24 Adjusted EBITDA1,2 ($m) ➢ Prior year included $54.2M of net sales and $13.4M of Adjusted EBITDA attributable to Collins Excluding Collins1: ➢ Net sales decreased $41.2M, or 6.4%, year-over-year ➢ Adjusted EBITDA increased $9.0M, or 22.2% 4Q24 Highlights $639.1 Ex-Collins $40.6 Ex-Collins 6.4%
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6 FOURTH QUARTER FISCAL 2024 SPECIALTY VEHICLES RESULTS $ 478.8 $ 439.9 $350 $370 $390 $410 $430 $450 $470 $490 Q4'23 Q4'24 Net Sales1 ($millions) $43.3 $50.2 9.0 % 11.4 % -1% 2% 5% 8% 11% 14% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 Q4'23 Q4'24 Adjusted EBITDA1,2 ($millions) Outlook ➢ 4Q24 $4.2 billion backlog reflects solid order revenue for fire apparatus and ambulances over the trailing twelve months ➢ 4Q23 $4.1 billion backlog included $388 million attributable to the bus businesses ➢ Exited FY24 with 2 to 3 year overall backlog in the fire and emergency groups ➢ Greater than normal first quarter seasonality with approximately 20% lower revenue and associated earnings reduction 1Q25 vs 4Q24 ➢ 4Q24 margin provides a solid foundation for continued margin expansion opportunity in FY25 and beyond ➢ Increased shipments and pricing of fire apparatus and ambulances ➢ Fewer shipments of terminal trucks ➢ Collins was sold in 1Q24 & ENC wind-down completed in 4Q24 ➢ Improved line rates, price realization and efficiency within the fire and emergency businesses ➢ Favorable mix of fire apparatus $424.6 Ex-Collins $29.9 Ex-Collins 7.0% ¹ As reported, 2023 results includes results from Collins, which was divested on January 26, 2024. Collins contributed $54.2 million of net sales and $13.4 million of Adjusted EBITDA in Q4 2023. 2 For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation.
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7 FOURTH QUARTER FISCAL 2024 RECREATIONAL VEHICLES RESULTS $ 215.2 $ 158.1 $0 $100 $200 $300 Q4'23 Q4'24 Net Sales ($millions) $19.1 $8.1 8.9 % 5.1 % 4% 6% 8% 10% $0 $5 $10 $15 $20 $25 Q4'23 Q4'24 Adjusted EBITDA1 ($millions) ¹ For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation . Outlook ➢ $292 million backlog decreased 24% year-over-year ➢ 4Q24 revenue book to bill 1.3x; 4Q24 orders were the highest quarterly intake since 2Q22 ➢ Favorable order trends within early fiscal 1Q25 ➢ Early expectation is for fiscal 2025 to be in line with fiscal 2024 revenue and earnings performance ➢ Lower year-over-year unit sales in Class A, Class B and towable categories ➢ Greater retail assistance in certain categories ➢ Inflationary pressures, lower unit sales and increased retail assistance partially offset by cost actions
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8 4Q24 BALANCE SHEET & OTHER FINANCIAL ITEMS Net Debt 1 Trade Working Capital 2 $53.4 $60.4 $248.2 1 Net debt is defined as total debt less cash and cash equivalents 2 Trade working capital is defined as accounts receivable plus inventories less accounts payable and customer advances Other Fiscal 4Q24 & FY24 Financial HighlightsYTD Cash From Operations 3 Adjusted Free Cash Flow is calculated as net cash from operating activities of $53.4 million, excluding transaction expense s and income taxes associated with divestiture activities of $5.4 million and $71.0 million, respectively, minus capital expendi tures of $27.6 million. Trade working capital 2 decreased $70.3 million vs 4Q23 Declared $0.06 quarterly cash dividend for shareholders of record on December 26, 2024, payable January 10, 2025 ($m) $102.2 million full-year adjusted free cash flow 3 New $250.0 million share repurchase authorization Quarterly cash dividend increased by 20% $27.6 million FY24 capital expenditures includes organic growth investments
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9 FISCAL 2025 GUIDANCE FY25 Guidance FY24 Pro Forma2 2024 Actual Net Sales: $2.3 to $2.4 billion $2.2 billion $2.38 billion Net Income: $98 to $125 million $257.6 million Adjusted EBITDA1: $190 to $220 million $145.2 million $162.8 million Adjusted Net Income1: $116 to $140 million $87.1 million Free Cash Flow3: $90 to $110 million Adjusted Free Cash Flow4 $102.2 million Full Year Fiscal 2025 Outlook Capital expenditures $30 to $35 million, net interest expense $18 to $20 million, effective tax rate 25-27% 1 For a reconciliation of Adjusted Net Income and Adjusted EBITDA to GAAP financial measures, see the Appendix to this presenta tion. 2PF is pro-forma to reflect the removal of $163.6M net sales and $17.6M Adj. EBITDA contributed by Collins and ENC, which were di vested in fiscal 2024. 3 Free cash flow is defined as cash from operations less capital expenditures. 4Adjusted Free Cash Flow is calculated as net cash from operating activities of $53.4 million, excluding transaction expenses and income taxes associated with divestiture activities of $5.4 million and $71.0 million, respectively, minus capital expenditur es of $27.6 million.
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APPENDIX
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11 11 4Q23 & FISCAL YEAR 2024 ADJUSTED NET INCOME RECONCILIATIONS REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME (In millions; unaudited) Three Months Ended October 31, Twelve Months Ended October 31, 2024 2023 2024 2023 Net income $ 41.7 $ 29.7 $ 257.6 $ 45.3 Amortization of intangible assets 0.5 0.6 2.2 3.5 Transaction expenses 1.0 — 7.4 0.5 Sponsor expense reimbursement — 0.1 0.2 0.3 Restructuring costs 3.1 — 12.3 — Restructuring related charges — — 7.8 10.5 Impairment charges — — 14.5 — Stock-based compensation expense 4.9 3.4 12.7 14.4 Legal matters — — 2.9 16.6 (Gain) loss on sale of business and assets (28.9 ) (1.1 ) (289.3 ) — Other items — — — 1.3 Income tax effect of adjustments 4.6 (1.0 ) 58.8 (11.9 ) Adjusted Net Income $ 26.9 $ 31.7 $ 87.1 $ 80.5
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12 12 4Q24 ADJUSTED EBITDA RECONCILIATIONS Three Months Ended October 31, 2024 Specialty Vehicles Recreational Vehicles Corporate & Other Total Net income (loss) $ 69.3 $ 6.4 $ (34.0 ) $ 41.7 Depreciation & amortization 3.9 1.6 0.5 6.0 Interest expense, net 3.2 0.1 4.2 7.5 Provision for income taxes — — 14.3 14.3 EBITDA 76.4 8.1 (15.0 ) 69.5 Transaction expenses — — 1.0 1.0 Restructuring costs 2.7 — 0.4 3.1 Stock-based compensation expense — — 4.9 4.9 Gain on sale of business (28.9 ) — — (28.9 ) Adjusted EBITDA $ 50.2 $ 8.1 $ (8.7 ) $ 49.6 Three Months Ended October 31, 2023 Specialty Vehicles Recreational Vehicles Corporate & Other Total Net income (loss) $ 37.9 $ 17.3 $ (25.5 ) $ 29.7 Depreciation & amortization 4.2 1.7 0.6 6.5 Interest expense, net 2.3 0.1 4.3 6.7 Provision for income taxes — — 8.7 8.7 EBITDA 44.4 19.1 (11.9 ) 51.6 Sponsor expense reimbursement — — 0.1 0.1 Stock-based compensation expense — — 3.4 3.4 Gain on sale of assets (1.1 ) — — (1.1 ) Adjusted EBITDA $ 43.3 $ 19.1 $ (8.4 ) $ 54.0 REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited)
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13 13 FISCAL YEAR 2024 ADJUSTED EBITDA RECONCILIATIONS Twelve Months Ended October 31, 2024 Specialty Vehicles Recreational Vehicles Corporate & Other Total Net income (loss) $ 382.0 $ 32.3 $ (156.7 ) $ 257.6 Depreciation & amortization 16.7 6.6 2.1 25.4 Interest expense, net 10.5 0.4 17.6 28.5 Provision for income taxes — — 82.8 82.8 EBITDA 409.2 39.3 (54.2 ) 394.3 Transaction expenses — — 7.4 7.4 Sponsor expense reimbursement — — 0.2 0.2 Restructuring costs 11.9 — 0.4 12.3 Restructuring related charges 7.8 — — 7.8 Impairment charges 12.6 1.9 — 14.5 Stock-based compensation expense — — 12.7 12.7 Legal matters 2.3 — 0.6 2.9 Gain on sale of business (289.3 ) — — (289.3 ) Adjusted EBITDA $ 154.5 $ 41.2 $ (32.9 ) $ 162.8 Twelve Months Ended October 31, 2023 Specialty Vehicles Recreational Vehicles Corporate & Other Total Net income (loss) $ 67.4 $ 82.2 $ (104.3 ) $ 45.3 Depreciation & amortization 15.9 8.0 2.3 26.2 Interest expense, net 9.7 0.3 18.6 28.6 Provision for income taxes — — 12.9 12.9 EBITDA 93.0 90.5 (70.5 ) 113.0 Transaction expenses — — 0.5 0.5 Sponsor expense reimbursement — — 0.3 0.3 Restructuring related charges 4.1 — 6.4 10.5 Stock-based compensation expense — — 14.4 14.4 Legal matters 0.9 0.5 15.2 16.6 Other items 0.6 — 0.7 1.3 Adjusted EBITDA $ 98.6 $ 91.0 $ (33.0 ) $ 156.6 REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT (In millions; unaudited)
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14 14 FISCAL YEAR 2025 OUTLOOK RECONCILIATIONS (1) Does not include any non-recurring charges that may occur during the period shown other than those presented in this reconciliation. See “Cautionary Statement About Forward-Looking Statements” in the presentation slides above. Fiscal Year 2025 Low High Net income (1) $ 98.4 $ 125.1 Depreciation and amortization 25.0 23.0 Interest expense, net 20.0 18.0 Provision for income taxes 34.6 43.9 EBITDA 178.0 210.0 Stock-based compensation expense 12.0 10.0 Adjusted EBITDA $ 190.0 $ 220.0 REV GROUP, INC. AND SUBSIDIARIES ADJUSTED EBITDA OUTLOOK RECONCILIATION (In millions) Fiscal Year 2025 Low High Net income (1) $ 98.4 $ 125.1 Amortization of intangible assets 1.7 1.7 Stock-based compensation expense 12.0 10.0 Income tax effect of adjustments 3.6 3.0 Adjusted Net Income $ 115.7 $ 139.8 REV GROUP, INC. AND SUBSIDIARIES ADJUSTED NET INCOME OUTLOOK RECONCILIATION (In millions)
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15 15 REVgroup.com Email: investors@revgroup.com Phone: 1-888-738-4037 (1-888-REVG-037) 245 S. Executive Drive, Ste 100 Brookfield, WI 53005
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INVESTOR PRESENTATION DECEMBER 11, 2024
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2 CAUTIONARY STATEMENT & NON-GAAP MEASURES Disclaimers Note Regarding Non-GAAP Measures REV Group reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, m anagement believes that the evaluation of REV Group’s ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, and Return on Invested Capital, which are non -GAAP financial measures. Adjusted EBITDA represents net income before interest expense , income taxes, depreciation and amortization as adjusted for certain non -recurring, one-time and other adjustments which REV Group believes are not indicative o f its underlying operating performance. Adjusted Net Income represents net income, as adjusted for certain items that we believe are not indicative of our ongoing operating performance. Free Cash Flow is calculated as net cash from operating activities minus capital expenditures, and Adjusted Free Cash Flow is calculated as net cash from operating activities, excluding transaction expenses and income taxes associated with divestiture activities, minus capital expenditure s. Return on Invested Capital is calculated as net operating profit after tax divided by average invested capital, as adjusted for certain items that we believe are not indicative of our ongoing performance. REV Group believes that the use of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, and Return on I nvested Capital provides additional meaningful methods of evaluating certain aspects of its operating performance from period to period on a basis that may not b e otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. See the Appendix to this presentation (and our filings with the SEC) for reconciliations of these non-GAAP measures used in this presentation to the most closely comparable financial measures calculated in accordance with GAAP. Cautionary Statement About Forward-Looking Statements This presentation contains statements that REV Group believes to be “forward -looking statements” within the meaning of the Priva te Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified longer -term forward-looking terminology, including the ter ms “believes,” “estimates,” “anticipates,” “expects,” “strives,” “goal,” “outlook,” “guidance,” “target,” “seeks,” “projects,” “intends,” “forecasts,” “p lans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this presentation and include statements regarding REV Group’s intentions, beliefs, goals or current expectations concerning, among other things, its results of operations, fin ancial condition, liquidity, prospects, growth, strategies and the industries in which we operate, including REV Group’s outlook and guidance for the full -year fiscal 2025 and its longer-term financial goals and targets. REV Group’s forward-looking statements are subject to risks and uncertainties, including those highlighted under “Risk Factors” and “Cautionary Note Regarding on Forward-Looking Statements” in REV Group’s public filings with the SEC and the other risk factors described from ti me to time in quarterly or annual reports on Forms 10-Q or 10-K, which may cause actual results to differ materially from those projected or implied by the forwar d-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor gua rantees of future events or performance. You should not place undue reliance on forward -looking statements, which only speak as of the date of this presentation. REV Group d oes not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise.
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A leading manufacturer of fire apparatus, ambulances, terminal trucks and industrial sweepers Recreational Vehicles ~5,700 Employees1 20 Brands COMPANY OVERVIEW ONE OF THE BROADEST SPECIALTYVEHICLE PORTFOLIOS IN THE INDUSTRY 2006 Initial Acquisition SEGMENT PROFILE (FY2 2024) FOOTPRINT OVERVIEW Specialty Vehicles A leading manufacturer of Class A, Class B, Class C, Super C, travel trailers and truck campers 1 As of October 31, 2024; includes temporary workers and contractors. 2 Fiscal year (FY) ends October 31. 3 See Appendix for note about reconciliation. 73% 27% $2.38B Net sales 79% 21% $162.8M Adj. EBITDA3 3Specialty Vehicles Recreational Vehicles
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SYSTEMATIC APPROACH TO VALUE CREATION Balanced production cadence Strengthened supply chain capabilities Simplification & complexity reduction Engineering design standardization Operational excellence Strategic pricing actions 4
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TRANSFORMATIONALPERFORMANCE SINCE 2020 5 FY 2020 FY 2024 Market Capitalization $498M as of Oct 30, 2020 $1,553 as of Dec. 6, 2024 Net Sales $2,278M $2,380M Backlog $1,779M $4,471M Adj. EBITDA1 $67.5M $162.8M Adj. EBITDA Margin 3.0% 6.8% 3-year Trailing Adj. Free Cash Flow1 $14M $263M3 Net Leverage2 4.9x 0.4x Adj. EBITDA1 by Segment Commercial 79% 21% Specialty Vehicles Recreational VehiclesFire & Emergency Recreation 35% 31% 34% 1 See Appendix for note about reconciliation. 2 Net leverage is defined as total debt less cash and cash equivalents at the end of the period divided by trailing twelve month Adjusted EBITDA. 3 Excludes proceeds from the divestiture of Collins Bus (Collins) of approximately $303M that were used to pay approximately $180 million in special cash dividends and share repurchases of approximately $126 million.
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REFLECTING ON RECENT TRANSFORMATIONAL MILESTONES MANAGEMENT REFRESHED BOARD PORTFOLIO SIMPLIFICATION SHAREHOLDER RETURNS MARK SKONIECZNY President & CEO (May 2023) AMY CAMPBELL CFO & SVP (April 2024) STEVE ZAMANSKY SVP, General Counsel & Corporate Secretary (Oct 2023) MAUREEN O’CONNELL Independent Board Member (Aug 2023) KATHLEEN STEELE Independent Board Member (Jan 2024) CYNTHIA AUGUSTINE Independent Board Member (May 2024) DAVID DAUCH Independent Board Member (Oct 2024) Exited Non-core Assets Reorganized Into 2 Reporting Segments (January 2024) $3.00 Special Cash Dividend (February 2024) 14.1M Shares Repurchased (FY 2021 – 2024) Exit of Primary Shareholder (Feb - Mar 2024) Updating Governance Policies Executive Team Compensation Updated to Include Performance-Based Shares1 GOVERNANCE 1 As of December 5, 2024 6
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UNIQUE AND ATTRACTIVE INVESTMENT OPPORTUNITY 7 Attractive End Markets With Positive Macro Trends & Secular Themes Specialty Vehicles Backlog Provides 2.5+ Years of Production Visibility Balanced Portfolio Delivering Strong Earnings Through Cycle Strong Cash Generation With Balance Sheet Optionality $ $ $ $ $ $ Large Installed Base Drives Recurring Replacement Demand
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PERFORMANCE AGAINST 2021 TARGETS 8 Adj. EBITDA1 $180M Excl Collins Bus2 $155M $230M >15% 7 – 8% 9 – 11% 8 – 10%Targets Provided in April 2021 Delivered Through FY 2024 1 See Appendix for note about reconciliation. 2 Collins Bus was divested in the first quarter of 2024. Excluding Collins Bus subtracts Collins 2023 Adjusted EBITDA of $37.3M from the original target and adds back Collins Adjusted EBITDA of $12.7M earned in the first quarter of 2024, prior to divestiture. 3 Fiscal years 2022 - 2024. Excludes proceeds from the divestiture of Collins of approximately $303M that were used to pay approximately $180M in special cash dividends and share repurchases of $126M. CONSOLIDATED ADJ. EBITDA1 MARGIN BY SEGMENT $162.8M (FY’24) $263M3 (FY’22 – ’24) 16.4% (FY’24) 8.9% (FY’24 Specialty Vehicles) N/A 9.5% (FY’21 – FY’24 average) 3-Year Adj. Free Cash Flow1 ROIC1 RecreationCommercialFire & Emergency
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UPDATED INTERMEDIATE TARGETS (FY 2027) CONSOLIDATED TARGETS SEGMENT ADJ. EBITDA MARGIN2 FY27 TARGETS Net Sales1 6% – 8% CAGR (2025 – 2027) Adj. EBITDA Margin2 10% – 12% Consolidated - FY27 Free Cash Flow3 >$350mm (2025 – 2027) ROIC4 >15% (2025 – 2027) Specialty Vehicles 14% – 16% Adj. EBITDA Margin Recreational Vehicles 7% – 9% Adj. EBITDA Margin (mid-cycle) 1 Compound annual growth rate (CAGR) is based on $2.22 billion pro forma fiscal 2024 net sales reflecting the divestiture of Collins and ENC in fiscal 2024 that generated $163.6 million of net sales in fiscal 2024. Assumes mid-cycle RV. 2 Adjusted EBITDA divided by net sales. Adjusted EBITDA divided by net sales. Adjusted EBITDA represents net income before interest expense, income taxes, depreciation and amortization as adjusted for certain items which REV Group believes are not indicative of its underlying operating performance. Assumes mid-cycle RV. 3 Free cash flow is defined as cash from operations less capital expenditures. 4 Return on Invested Capital is calculated as adjusted net operating profit after tax divided by average invested capital as adjusted for certain items that we believe are not indicative of our ongoing performance. 9
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Illustrative Path to Consolidated Double-Digit Margins FY27 $2.75B Net sales FY27 $310M Adj. EBITDA FY24 $145.2M Pro Forma Adj. EBITDA1 FY24 $2.22B Pro Forma Net sales FY24 $162.8M Reported Adj. EBITDA1 FY24 $2.38B Net sales Actual FY25 - FY27 Consolidated net sales2,3 +6% - 8% annual growth CAGR Fiscal 2027 Adj. EBITDA margin3,4 Specialty Vehicles 14%-16% Recreational Vehicles 7%-9% Corporate Expense (1.5%) Consolidated 10%-12% 1 See Appendix for note about reconciliation. 2 Net Sales growth is based on pro forma fiscal 2024 net sales reflecting the divestiture of Collins and ENC in fiscal 2024 which represented $163.6 million of net sales and $17.6 million of Adjusted EBITDA in fiscal 2024. 3 Assumes mid-cycle RV. 4 Adjusted EBITDA divided by net sales. Adjusted EBITDA represents net income before interest expense, income taxes, depreciation and amortization as adjusted for certain items which REV Group believes are not indicative of its underlying operating performance. As Reported Pro Forma2 10 Specialty Vehicles Recreational Vehicles
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Leading ambulance market position experiencing strong demand A leading manufacturer of fire vehicles in North America Ambulance Type I Cab and Chassis Pumper / Tanker ARFF Aerial Ambulance Type II Ambulance Type III VehicleLife: 5 – 30 YearsInstalledBase: 60,000+ Units Expected Vehicle Life Terminal Trucks Sweepers ✓ Regular replacement cycle ✓ Backed by municipal tax receipts and federal stimulus ✓ Urban sprawl and population growth tailwinds ✓ Technology upgrades 11 SEGMENT OVERVIEW: SPECIALTYVEHICLES Property Tax Receipts1 Demand Drivers Operating Momentum ✓ Combined $4.2 billion record backlogs in the fire and emergency businesses provides production visibility ✓ 4Q24 Adjusted EBITDA margin of 11.4% provides a solid foundation for continued growth Unit Type Expected Life Pumper 14 – 16 years Aerial 20 – 30 years Type I & III ambulance 5 – 7 years + remount option Type II ambulance 5 – 7 years 1 U.S. Bureau of Economic Analysis, Personal Current Tax Receipts: State and Local Government: Property Taxes [S210400], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/S210400, November 14, 2024. $ millions 4.4% CAGR Jan 2000 – June 2024
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$1.6B1 $1.9 - $2.0B Pro Forma FY'24 Fire Emergency Other FY'27 SPECIALTY VEHICLES INTERMEDIATE TARGETS Revenue Growth Target Drivers • 2 to 3 years of overall production visibility depending on the brand and type • Low-single digit unit volume increases FY25-27 • Mid-single digit price realization FY25-27 Fire and Emergency • End market normalization (recovery from trough to mid-cycle) in other Specialty Vehicles segment businesses • Parts growth in low-single digits Other 1 Net Sales is based on pro forma fiscal 2024 net sales reflecting the divestiture of Collins and ENC in fiscal 2024 which represented $163.6 million of net sales in fiscal 2024. 12 6% – 8% CAGR FY25 – FY27 12
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8.8%2 14% to 16% Pro Forma FY'24 Growth Price / Cost Productivity FY'27 +100 BPS +300 - 400 BPS +100 - 200 BPS SPECIALTY VEHICLES INTERMEDIATE TARGETS Adjusted EBITDA Margin Target Growth: • Low-single digit volume increases annually • Mid-teen contribution margin on volume growth Price / Cost : • Mid-single digit price realization FY25-27 • Low-single digit material, overhead and labor cost inflation Productivity: • Operational excellence & lean projects • Value analysis/Value engineering (VA/VE) • Dual & multi-sourcing • Other savings initiatives 1 Cumulative impacts to adjusted EBITDA margin over a total of three years divided by 2027 revenue. 2 Adjusted EBITDA margin is based on pro forma fiscal 2024 net sales and Adjusted EBITDA reflecting the divestiture of Collins and ENC in fiscal 2024 which represented $163.6 million of net sales and $17.6 million of Adjusted EBITDA in fiscal 2024. Drivers 13 FY25 – FY271 13
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SPECIALTY VEHICLES TREND TO LONG-TERM OUTLOOK 14 Industry Demand/ (unit orders) Backlog 1 Visibility (unit production) At trend Above trend orders Normalizing orders At or below trend Replacement demand Fire: 9-12 months Emergency: 3-6 months Backlog extending FY21 – FY23 2 – 3 year backlogs exiting FY24 Backlog normalizing FY25 – FY27 Specialty Vehicles backlog 1 – 1.5 years GDP+ growth +30 – 50 basis point annual margin expansion Medium-Term (2025E – 2027E) Long-Term (2028+) Pre-Covid (<2019) Covid Shock (2020 – 2023) Current (2024) Net Sales Adjusted EBITDA margin Certainty of backlog provides production planning visibility and price realization opportunity for increased net sales (6% - 8% FY25-27 CAGR) even as industry demand normalizes Productivity initiatives, simplification, rationalization and process optimization provide long-term margin accretion potential beyond the price realization benefits that are expected in FY25-27 1 Backlog visibility depends on unit brand and type.
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A leading manufacturer of high-end and traditional Class C / “Super C” RVs Super C Regular C Renegade XL Verona TravelTrailer Truck Camper 21’ – 24’ Long Bed Among the most recognized Class A diesel and gas RV brands Class A Diesel Class A Gas Eagle Bounder High-end offering of quality travel trailers and truck campers Weekender Premier manufacturer in the Class B motorhome segment Class B Van Conversions Luxury Van Conversion VehicleLife: 10 – 20 YearsInstalled Base: 100,000+ Units SEGMENT OVERVIEW: RECREATIONALVEHICLES ✓ Iconic brands with a strong, established dealer network ✓ Strong positions in niche product categories ✓ Disciplined cost management with highly variable expense Net Sales by Category - REVG REV Group Portfolio Wholesale Shipments Industry Category Mix Fiscal 2024 1Source: RVIA https://www.rvia.org/historical-rv-data, North America 15
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RECREATIONAL VEHICLES TARGETS THROUGH THE CYCLE 5% 7% 9% 11% 0% 2% 4% 6% 8% 10% 12% 14% $500 $700 $900 $1,100 Adj. EBITDA Margin (%) Revenue ($M) 2018 2019 2020 2021 2022 2023 2024 Retail sales units: 300 – 350k Retail sales units: 600k+ Trough Retail sales units: 450 – 500k Mid-cycle Peak FY25 outlook 1 Data noted by fiscal years represent actual net sales and Adjusted EBITDA margin results of the Recreational Vehicles segment. Recreational Vehicles Performance Targets Through The Cycle1 Adjusted EBITDA margin target of 7% to 9% mid-cycle 16 FY27 target
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CAPITAL ALLOCATION PRIORITIES 17 Deal Criteria Portfolio Objectives ➢ Build strong platforms ➢ Leverage core operating model ➢ Grow above market ➢ Continue to expand profitability Strategic Fit ➢ Natural adjacencies ➢ Resilient / stable end markets ➢ Tuck-in opportunities ➢ Diversify the portfolio ➢ Vertical integration opportunity Financial Objectives ➢ Attractive margin profile ➢ High variable cost ➢ Generate returns greater than the cost of capital Target Leverage Organic Investments Acquisitions Share Repurchases Dividends ➢ 1.5x – 2.5x net leverage target1 ➢ Ability to increase for strategic M&A ➢ Annual capex above maintenance to support growth and profitability ➢ Pursue investments that exceed risk-adjusted IRR hurdles ➢ Opportunistic M&A to enhance shareholder value ➢ Strict strategic fit and financial criteria ➢ Opportunistically evaluate share repurchases ➢ New $250M share repurchase authorization approved and effective Dec 5, 2024 ➢ Sustainable and growing dividend ➢ 20% cash dividend increase approved December 5, 20242 1 Net leverage is defined as total debt less cash and cash equivalents at the end of the period divided by trailing-twelve month Adjusted EBITDA. 2 Quarterly cash dividend increased from $0.05 to $0.06 per share of common stock, which equates to a rate of $0.24 per share of common stock on an annualized basis.
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MAINTAIN LEADERSHIP IN STABLE END MARKETS ➢ Macro tailwinds of aging & growing population, urban sprawl and robust budgets ➢ Leverage consistent demand for replacement units within an expansive installed fleet ➢ Utilize strong dealer networks and customer relationships ACHIEVE DOUBLE DIGIT CONSOLIDATED ADJ. EBITDA % GENERATE STRONG & CONSISTENT CASH FLOW STRATEGIC & DISCIPLINED CAPITAL ALLOCATION ➢ Mid-teens Specialty Vehicles margin and high single-digit Recreational Vehicles margin ➢ Unlock and capitalize on the value in our backlog ➢ Continue deployment of REV Drive operational excellence programs ➢ Growth above market ➢ Enhance profitability through strong margin expansion from operational efficiencies ➢ Disciplined management of trade working capital ➢ Drive strong returns on invested capital ➢ Pursue attractive M&A that is complementary to our operating model ➢ Return excess capital to shareholders 18 ROADMAP FOR VALUE CREATION
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19 APPENDIX
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FISCAL 2024 ADJUSTED EBITDA RECONCILIATION 20 Twelve Months Ended October 31, 2024 Specialty Vehicles Recreational Vehicles Corporate & Other Total Net income (loss) $ 382.0 $ 32.3 $ (156.7) $ 257.6 Depreciation & amortization 16.7 6.6 2.1 25.4 Interest expense, net 10.5 0.4 17.6 28.5 Provision for income taxes — — 82.8 82.8 EBITDA 409.2 39.3 (54.2) 394.3 Transaction expenses — — 7.4 7.4 Sponsor expense reimbursement — — 0.2 0.2 Restructuring costs 11.9 — 0.4 12.3 Restructuring related charges 7.8 — — 7.8 Impairment charges 12.6 1.9 — 14.5 Stock-based compensation expense — — 12.7 12.7 Legal matters 2.3 — 0.6 2.9 Gain on sale of business (289.3) — — (289.3) Adjusted EBITDA $ 154.5 $ 41.2 $ (32.9) $ 162.8 (In millions; unaudited)
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FISCAL 2020 ADJUSTED EBITDA RECONCILIATION 21 Twelve Months Ended October 31, 2020 Fire & Emergency Commercial Recreation Corporate & Other Total Net income (loss) $ 12.3 $ 21.9 $ 23.7 $ (88.4) $ (30.5) Depreciation & amortization 13.5 5.7 13.7 7.3 40.2 Interest expense, net 4.5 0.9 0.6 19.7 25.7 Benefit for income taxes — — — (15.6) (15.6) EBITDA 30.3 28.5 38.0 (77.0) 19.8 Transaction expenses 0.2 0.1 — 3.0 3.3 Sponsor expense reimbursement — — — 0.5 0.5 Restructuring costs 6.1 0.2 0.4 3.2 9.9 Restructuring related charges — 0.1 — 10.4 10.5 Stock-based compensation expense — — — 7.8 7.8 Legal matters — — — 1.8 1.8 Loss on sale of business — 6.2 — 4.9 11.1 Gain on acquisition of business — — — (8.6) (8.6) Impairment charges 3.3 — — 8.8 12.1 Earnings attributable to assets held for sale — (0.6) — (0.2) (0.8) Deferred purchase price payment — — — 0.1 0.1 Adjusted EBITDA $ 39.9 $ 34.5 $ 38.4 $ (45.3) $ 67.5 (In millions; unaudited)
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ADJUSTED FREE CASH FLOW RECONCILIATION 22 (In millions; unaudited) 2018 2019 2020 2021 2022 2023 2024 Net cash provided by operating activities (19.2)$ 52.5$ 55.7$ 158.3$ 91.6$ 126.5$ 53.4$ Cash income taxes - divestiture activities — — — — — — 71.0 Transaction expenses - divestiture activities — — — — — — 5.4 Capital expenditures (40.6) (20.8) (13.5) (24.7) (24.8) (32.8) (27.6) Adjusted Free Cash Flow (59.8)$ 31.7$ 42.2$ 133.6$ 66.8$ 93.7$ 102.2$ Twelve Months E nded October 31,
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RETURN ON INVESTED CAPITAL (ROIC) RECONCILIATION 23 (In millions; unaudited) 2023 2024 Adjusted EBITDA 162.8$ (-) Depreciation & Amortization (25.4) (-) Stock Based Compensation (12.7) = Adjusted EBIT 124.7 (-) Taxes at 25% on Adjusted EBITA (31.2) (+) Amortization 2.2 Adjusted NOPAT 95.7$ October 31, 2023 October 31, 2024 Long-term Debt 150.0$ 85.0$ Shareholder's Equity 498.0 435.1 Deferred Tax Liability (Asset) 8.2 (5.4) Invested Capital 656.2$ 514.7$ ROIC = Adj. NOPAT ÷ Average Invested Capital 16.4% Twelve Months E nded October 31, (1) 1 Average invested capital is defined as the average of current fiscal year and prior fiscal year ending invested capital.
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245 S. Executive Drive, Ste 100 Brookfield, WI 53005 REVgroup.com EMAIL: investors@revgroup.com PHONE: 1-888-738-4037 (1-888-REVG-037)