BROOKFIELD, Wis. - REV Group, Inc. (NYSE: NYSE:REVG), known for designing and manufacturing specialty vehicles, announced the election of David C. Dauch as an independent member of its Board of Directors, effective last Friday.
Dauch, who is the Chairman of the Board & Chief Executive Officer of American Axle (NYSE:AXL) & Manufacturing Holdings, Inc. (AAM), a Global Tier 1 Automotive Supplier, brings a wealth of experience from his nearly 30 years at AAM. His role at AAM involves crafting and executing strategic objectives and managing the company's operations spanning nearly 80 facilities across 18 countries.
According to REV Group's Board Chair, Jean Marie (John) Canan, Dauch's extensive background in the automotive industry is expected to contribute significantly to the strategic and operational goals of REV Group. Canan expressed the Board's enthusiasm for Dauch's addition, emphasizing the value of his insights and experience.
In addition to his leadership at AAM, Dauch has been a member of AAM's Board of Directors since 2009. His industry involvement extends to serving on the Boards of Amerisure Mutual Holdings, Inc., the Amerisure Companies, and the National Association of Manufacturers (NAM). He is also a member of the Stellantis (NYSE:STLA) Supplier Advisory Council and the Miami University Business Advisory Council.
Dauch holds a bachelor's degree in management from Miami University and an MBA from Michigan State University, credentials that underline his extensive knowledge in production and supply chain management.
REV Group serves a diverse customer base with its specialty vehicles, including public services such as ambulances and fire apparatus, as well as commercial infrastructure with terminal trucks and industrial sweepers. The company's Recreational Vehicles Segment also produces a range of RVs. REV Group's brands, some dating back over 50 years, are well-established in the specialty vehicle industry.
This new appointment to REV Group's Board of Directors is based on a press release statement and reflects the company's commitment to enhancing its strategic direction with seasoned industry expertise.
In other recent news, REV Group reported mixed financial results for the third quarter of fiscal year 2024. The company's Specialty Vehicles segment, particularly its ambulance and fire group businesses, showed improved performance despite a significant sales decline in the recreational vehicle market. Baird maintained its Outperform rating on REV Group, citing operational performance and slight EBITDA guidance increase as positive factors. The firm noted the strength in the Fire & Emergency segment while acknowledging the decline in the Recreation segment.
The consolidated backlog of orders remained strong at $4.4 billion, primarily driven by orders for fire and emergency vehicles. REV Group's net debt stood at $165 million, with an expectation to maintain leverage below 1x. The company anticipates modest sequential revenue growth and a slightly higher specialty vehicles margin as the fiscal year closes, forecasting full-year revenue between $2.35 billion and $2.45 billion, with adjusted EBITDA guidance of $155 million to $165 million.
Baird's analysis suggests that the stock should trade closer to the mid-$30s, not accounting for potential asset sales or future mergers and acquisitions. The firm's projection is based on anticipated financial improvements over the next several years, emphasizing the potential for significant margin, earnings per share, and free cash flow growth through fiscal year 2026. These are the recent developments that shape REV Group's current financial landscape.
InvestingPro Insights
REV Group's strategic move to appoint David C. Dauch to its Board of Directors aligns well with the company's current financial position and market performance. According to InvestingPro data, REV Group boasts a market capitalization of $1.44 billion, indicating a substantial presence in the specialty vehicle market.
The company's financial health appears robust, with a P/E ratio of 6.3, suggesting that it may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip noting that REV Group is "trading at a low earnings multiple." Additionally, the company's revenue for the last twelve months stands at $2.48 billion, demonstrating its significant market presence.
InvestingPro Tips highlight that REV Group has been "aggressively buying back shares" and offers a "high shareholder yield," which could be seen as positive signals for investors. These actions may reflect management's confidence in the company's future prospects and commitment to delivering value to shareholders.
The appointment of Dauch comes at a time when REV Group has shown strong market performance. The company has experienced a remarkable 118.5% price total return over the past year, and an 84.32% return year-to-date. This impressive growth trajectory may benefit from Dauch's extensive industry experience, potentially helping to sustain or even accelerate this momentum.
It's worth noting that InvestingPro offers 13 additional tips for REV Group, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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