In this pitch deck, analysts Marius Fischer, Colin Petersson, and Edvin Asplund present a
comprehensive analysis of REV Group. The company is the leading U.S. manufacturer of fire and
emergency vehicles and holds a strong position in the RV market. Coming from a PE-backed bolt-on
strategy, major operational inefficiencies and a significant supply/demand imbalance positions the
Company for aggressive short-term margin expansion, supporting a 2-year IRR of 19% and a total
upside of 42% in the base scenario.
Key takeaways
● Supply/demand discrepancy, REVG raised prices by 40% between Q4-21 to Q2-23, but due to
long lead times the Company has yet to reach the higher-margin orders, positioning it for
price-driven margin expansion.
● Operational inefficiencies, stemming from a PE-backed bolt-on-acquistions strategy without
proper integration, positions the Company to close the gap on its subpar margins to peers.
● Becoming Pure-play, the Company is actively pursuing a simplificaition effort by divesting
non-core assets and returning the proceeds to shareholders.