DA Davidson sees upswing in RV chassis industry

On Tuesday, DA Davidson conveyed a positive outlook for the recreational vehicle (RV) chassis sector, following an analysis of industry data for February. The firm’s examination of Class 5-7 chassis data, which includes many Class A and C motorhomes, revealed a substantial year-over-year increase. Orders for these chassis surged by 40%, while production doubled, indicating a strong upward trend as the market approaches the Spring season. This positive momentum aligns with broader industry developments, as tracked by InvestingPro’s comprehensive sector analysis.

The report suggests that REV Group, Inc. (NYSE:REVG), which has a strong presence in the RV chassis market, could be entering an up-cycle in both of its segments simultaneously. With a market capitalization of $1.56 billion and a P/E ratio of 16.93, REV Group has demonstrated strong financial performance, achieving a remarkable 63% return over the past year. REV Group, rated as a ’BUY’ by DA Davidson, has also recently expressed a more optimistic tone regarding its RV business. However, the firm indicated a desire to observe retail activity before adopting a more bullish stance.

Similarly, Shyft Group (NASDAQ:SHYF), another player in the industry with a ’BUY’ rating, could benefit from these positive developments. The report notes that Shyft Group’s RV business, while smaller in scale compared to REV Group, is also poised to gain from the favorable industry trends.

The increase in RV chassis orders and production is a clear sign of recovery and growth within the RV market. This trend could have significant implications for companies like REV Group and Shyft Group, which are well-positioned to capitalize on the increasing demand for RVs.

The analysis by DA Davidson underscores the potential for a robust period of growth for the RV chassis sector. As the industry moves past a previously low point, the notable uptick in production and orders could herald a prosperous season ahead for key manufacturers in the space.

In other recent news, Rev Group Inc . reported its first-quarter fiscal year 2025 earnings, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $0.40, surpassing the forecasted $0.28, and achieved revenue of $525.1 million, above the anticipated $503.12 million. The company also reported a record adjusted EBITDA of $36.8 million, an increase of $6.3 million from the previous year. Despite these positive results, the company’s revenue saw a year-over-year decrease of $61 million. Rev Group has provided full-year guidance of $2.3 to $2.4 billion in net sales and an adjusted EBITDA range of $190 to $220 million. The company anticipates growth in its Specialty Vehicles segment, while the RV segment is expected to remain flat year-over-year. Additionally, Rev Group has commenced share repurchases, returning $19.2 million to shareholders by repurchasing approximately 579,000 shares. These developments reflect Rev Group’s strategic focus on operational efficiency and market expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.