Rev Group’s 2024 fiscal second-quarter financial report recorded significant decreases in its recreational vehicle segment.
The manufacturer’s RV net sales dropped to $179.7 million, a 30% decrease compared with the same period last year. Adjusted earnings totaled $12.1 million, down 58% from the fiscal second quarter of 2023.
Fewer shipments contributed to the sales decrease. RV shipments declined by 43% compared with the same period one year ago. Towable shipments declined by 70%. New motorized RV shipments through April were down by 22% compared with the same period last year.
According to Rev Group President and CEO Mark Skonieczny, 2025 model year orders have been softer than anticipated.
“Within the recreational vehicle segment,” he said, “overall industry demand for motorized RVs, which accounts for more than 90% of our RV segment, remains depressed.”
Skonieczny cited factors impacting consumer purchasing decisions. These include high interest rates, increased floorplan costs and negative trade-in values for RVs bought from 2020-2023.
Across the industry, Skonieczny said cost-effective towables are yielding more sales compared with motorized. Lower-priced towable RVs do not include Rev Group’s premium Lance brand.
“Towables are picking up,” Skonieczny said, “but they are in the shorter, stick-and-tin trailers. We are a premium provider within that space, so we just have not seen the uptick in the premium side of that business yet as an industry.”
The manufacturer took steps to account for the softer RV market. Rev Group adjusted its cost structure by reducing labor and fixed costs.
Skonieczny said, “We have gotten ahead of it, and we have anticipated a bigger drop or challenge.”
He said the company will continue to take proactive steps to align with the market environment.
