REV Group Surges on Strong Q4 Earnings and Dividend Hike
Specialty vehicle maker beats profit estimates by 31% and raises quarterly dividend, signaling confidence ahead of its planned merger with Terex.
REV Group Inc. (NYSE: REVG) delivered a robust fiscal fourth-quarter earnings report, handily beating analyst expectations and announcing a dividend increase that signals strong management confidence as it moves toward a planned merger with industrial machinery company Terex Corporation.
The Brookfield, Wisconsin-based manufacturer of specialty vehicles, including ambulances and fire trucks, reported adjusted earnings of $0.83 per share, outpacing consensus estimates of $0.63 by a striking 31.1%. Quarterly revenue reached $664.4 million, an 7.8% beat over the anticipated $616.2 million, according to figures released Wednesday.
The strong performance was largely fueled by the company's Specialty Vehicles segment, which saw sales climb 18.0% year-over-year. The segment's backlog also expanded by 5.3%, indicating sustained demand for its products. For the full fiscal year, REV Group posted net sales of $2.46 billion and a net income of $95.2 million.
In a clear sign of financial health and a commitment to shareholder returns, the company's board declared a quarterly cash dividend of $0.06 per share, an increase from the previous $0.05. The dividend is payable to shareholders of record as of the close of business on September 26, 2025.
"Our fourth quarter results are a testament to the hard work of our employees and the strength of our operating model," said Derek Popko, President and CEO of REV Group. "We delivered strong top-line growth and margin expansion, which allowed us to generate significant cash flow and strengthen our balance sheet."
Beyond the strong quarterly numbers, the results provide a solid operational backdrop for REV Group's pending strategic merger with Terex Corporation, which was first announced on October 30, 2025. The company confirmed that it filed a preliminary Form S-4 registration statement with the U.S. Securities and Exchange Commission on December 8 and that the deal remains on track to close in the first half of calendar year 2026. The merger is expected to create a diversified industrial machinery and specialty vehicles powerhouse.
Investors reacted positively to the combination of a strong earnings beat, a dividend hike, and positive commentary on the forthcoming merger. Shares of REVG, which have traded between $26.40 and $64.40 over the past 52 weeks, showed bullish momentum in pre-market and early trading sessions.
As of Tuesday's close, REV Group had a market capitalization of approximately $2.72 billion. The company's strong finish to its fiscal year provides a solid foundation as it prepares to combine with Terex. Investors will be closely watching for further details on the merger integration plan and any updated guidance that reflects the combined entity's future prospects.