Rev Group has revised its full-year sales and earnings forecast due to strong performance in its fire-and-emergency unit and commercial segment, compensating for weakness in its recreational business.
The manufacturer of specialty vehicles and aftermarket parts now aims to achieve fiscal-year sales ranging from $2.55 billion to $2.60 billion, surpassing the previous estimate of $2.45 billion to $2.55 billion.
Rev Group anticipates an annual profit of $27 million to $37 million, a significant increase from the previous range of $15 million to $30 million. Adjusted net income is targeted at $63 million to $73 million, compared to the initial forecast of $48 million to $62 million.
Strong Free Cash Flow
The company is also targeting annual free cash flow figures of $70 million to $75 million, up from the earlier projection of $43 million to $56 million.
Mark Skonieczny, Chief Executive Officer of Rev Group, highlighted the company's commitment to streamlining manufacturing complexity, enhancing efficiency, and improving throughput.
Rev Group reported a 14% increase in sales for the recently concluded fiscal third quarter. The growth was primarily driven by the Fire & Emergency segment and the Commercial unit, partially offsetting the softness observed in the Recreation business.