REV Group, Inc.

Greetings and welcome to REV Group's third quarter fiscal 2025 results conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to turn the conference over to your host, Mr. Drew Connip. Thank you. You may begin.

Good morning, and thanks for joining us. Earlier today, we issued our third quarter fiscal 2025 results. A copy of the release is available on our website at investors.revgroup.com. Today's call is being webcast in a slide presentation, including reconciliations of non-GAAP to GAAP financial measures is available on the investor section of our website. Please refer now to slide two of that presentation. Our remarks and answers will include forward-looking statements which are subject to risks that could cause actual results to differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we described in our Form 8-K filed with the SEC earlier today and other filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. All references on this call do a quarter or year or to our fiscal quarter or fiscal year, unless otherwise stated. Joining me on the call today is our President and CEO, Mark Skanechny, as well as our CFO, Amy Campbell. Please turn to slide three, and I'll turn the call over to Mark.

Thank you, Drew, and good morning to everyone joining us on today's call. Today I'll provide an overview of the operating, commercial, and financial highlights achieved within the quarter, then move to the quarter's consolidated financial performance. As we close the third quarter, I want to take a moment to recognize the continued momentum we've built across the organization that reflects over three years of hard work and transformation by our team since emerging from the unique challenges the post-pandemic environment that took hold in late 2021 and carried through much of our fiscal year 2022 the operational discipline strategic investments and focus on execution have driven meaningful improvements across our businesses and the results this quarter further validate the actions we've taken we've seen sustained gains in manufacturing throughput quality and efficiency that are outcomes of enterprise-wide efforts in lean manufacturing, workforce training, and process innovation executed by the local teams. These improvements haven't happened overnight. They're the result of consistent, focused work across multiple quarters to streamline operations, increase scalability, and improve cost discipline. Today, our fire and ambulance businesses, our lasers are focused on driving productivity and efficiency gains which is reflected in our top-line results, bottom-line earnings, and strong cash conversions. I am pleased to report another quarter of throughput improvement with fire unit shipments increasing 11% and ambulance unit shipments increasing 7% versus the third quarter of 2024. The progress we've made since 2022 is a testament to the resilience of our operations and the capability of our teams. We've not only improved cycle times and delivery performance, but we've also positioned ourselves to respond more quickly to variability and product mix while maintaining a relentless focus on quality and customer satisfaction. With a strong foundation in place, we're confident in our ability to build on this success, scale efficiently, and continue to invest in our businesses to drive continued growth across our portfolios. Recently, we took a major step forward in our commitment to U.S. manufacturing growth and operational resilience with the groundbreaking of major facility expansion at Spartan Emergency Response in Brandon, South Dakota. This approximately $20 million investment, which we previously announced during our second quarter earnings call, is expected to expand the facility's fire apparatus production capacity by 40% upon completion allowing us to further meet demand for both our fully custom and semi-custom fire apparatus. These enhancements will provide opportunity to reduce delivery times and improve throughput, particularly for departments looking for high-performance solutions within a one-year delivery window. The expansion will add 56,000 square feet to our existing campus, nearly double location's manufacturing footprint, and enhance critical capabilities in painting and fabrication. Importantly, it will also bring meaningful economic benefits to the Brandon and Sioux Falls communities, including 50 new jobs and increased local tax contributions. We're honored by the strong support from South Dakota leaders, including Senate Majority Leader John Thune, Senator Mike Rounds, Congressman Dusty Johnson, and Governor Larry Roden, and we are proud to continue our mission of supporting first responders with best-in-class emergency vehicles. This project underscores our deep commitment to the first responders who rely on our products in life-critical moments. Across our brands, we recognize the urgency and importance of getting high-quality vehicles into the hands of those who protect our communities every day. To that end, we're deploying additional capital investments in our facilities with targeted programs across both our fire and ambulance groups. These investments will enhance our workforce's ability to accelerate production timelines drive continued improvements in quality, and help ensure that we are well-positioned to support customers with dependable, mission-ready vehicles when they need them most. Our teams are aligned around this vision and remain focused on making smart, strategic investments that elevate our capabilities, strengthen customer partnerships, and drive continuous improvement in how we deliver value to our nation's first responders and the communities they serve. Moving to other updates, during the third quarter, we completed the sale of our Lance Camper business. I want to sincerely thank the Lance Camper team for their hard work, commitment, and contribution to the company. To the employees, we wish you continued success and the very best in this next chapter for Lance Camper. Following the strategic divestiture of our non-motorized business, our RV portfolio has been streamlined and is now fully focused on our Indiana-based motorized RVs in the Class A, Class B, and Class C product categories. Each brand continues to set industry standards for quality, performance, and customer satisfaction within its respective class. Collectively, they serve a diverse and growing customer base with a comprehensive range of premium motorhomes from the nimble Midwest Class B vans to luxurious Fleetwood American Coach and Holiday Rambler Class A coaches and the stylish and rugged Renegade Class C coaches, ensuring broad market reach and sustained demand. What truly distinguishes this portfolio is not only the technical excellence and innovation found in each product line, but also the operational resilience and forward-thinking culture that drive continued growth. With strong dealer networks, cutting edge design, and unwavering commitment to the RV lifestyle, This remaining portfolio focused on motorized end markets is well positioned for continued success and value creation in the years ahead. Next, we delivered strong year-to-date cash flow, further strengthening an already solid balance sheet and enhancing the company's financial flexibility. This financial strength gives us the flexibility to continue investing in our business while advancing our strategic agenda aimed at creating lasting value for all of our stakeholders. Our priorities are focused on reinvesting in our businesses to drive long-term growth, pursuing opportunistic share repurchases and maintaining a sustainable and growing dividend while selectively valuing M&A opportunities that align with the company's strategic objectives. We believe a strong financial profile positions the company well to meet demand and create additional value for customers and shareholders while remaining resilient through dynamic market conditions. Finally, Today we are raising our fiscal 2025 outlook to reflect the strong year-to-date performance, as well as our expectation that we will effectively manage the impact of tariffs throughout the remainder of the year. Amy will provide details on these points shortly. Turning to slide four, I'll provide a consolidated third quarter financial results. Consolidated net sales in the third quarter of 2025 were $644.9 million, compared to 579.4 million in third quarter 2024. Net sales from third quarter 2024 included 44.2 million attributable to the ENC transit bus business that was exited within fiscal 2024. Excluding this impact, net sales increased 109.7 million, or 20.5%, compared to the prior year quarter. The increase, excluding the impact of the bus business, was primarily due to higher net sales in both the specialty vehicle segment and the recreational vehicle segment. We are pleased that the third quarter's performance continued to demonstrate top-line momentum. Consolidated adjusted EBITDA was 64.1 million compared to 45.2 million in third quarter 2024, excluding the 6.6 million impact of the E&C bus business in the prior year quarter Adjusted EBITDA increased 25.5 million or 66.1% year-over-year, driven by the commercial and operational performance in the specialty vehicle segment. The recreational vehicle segment has continued to execute well against a backdrop of soft industry demand and tariff impacts related to the import of luxury vans from Europe. Please turn to slide five, and I will now turn it over to Amy for the detailed segment financials.