REV Group (REVG -3.29%) is one American manufacturer that isn't focused on tariffs. The Wisconsin-based manufacturer produces specialty vehicles, including fire and emergency, commercial, and recreational vehicles. Its entire manufacturing footprint is in the U.S.
REV Group reported strong earnings today, and shares soared by as much as 22.4%. That came after sales jumped by 20.5%, excluding the impact of the company's bus business, which was sold in October 2024. As of 11:25 a.m. ET, the stock has pared that outsize gain but remains higher by 5.6%
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Tariffs aren't an issue
Sales growth from emergency vehicles as well as recreational vehicles drove the solid fiscal third-quarter results. Profitability was even stronger than sales with adjusted earnings per share soaring 65% year over year.
Tariffs aren't a concern for REV Group, as its full manufacturing footprint includes facilities in 14 states across the U.S. It's expanding that footprint, too. The company recently announced plans to expand capacity at its Spartan Emergency Response plant in South Dakota. That $20 million investment will increase production capacity by 40% at the maker of fire apparatus.
The strong results led management to increase guidance across the board. It boosted the outlook for sales and net income for the full fiscal year. Management also sees free cash flow of as much as $150 million for the year, versus its previous estimate of up to $120 million.
REV Group shares have already rocketed higher by about 70% this year. Investors have been optimistic on growth and the lack of tariff concerns. With today's increase, shares trade at a forward price-to-earnings (P/E) ratio of about 22. That's well above its three-year average of 13.5. Investors might want to wait for a pullback before jumping in after the strong earnings report.
