REV Group, Inc. (NYSE:REVG) Q4 2023 Earnings Call Transcript

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Mike Shlisky: Okay. Great. I also wanted to follow up on some of your comments about street sweepers. It seems like elsewhere, they haven’t been calling out too many challenges in the street sweeper business, given infrastructure bill tailwind and just generally positive government spending trends. I’m curious if you can give us more details on what you’re seeing there in a certain part of the country, a certain size, sweeper, et cetera, that might be reasons why some reason your segments just now working right there.

Mark Skonieczny: Yeah. I think at a more of it is the utilization. So like we talked about, we sell a lot of rental houses and what they’ve seen is a drop in utilization in the dealers that we use as well as the operator. So again, it’s one that we continue to follow. I think we are seeing increased quote activity, but we just haven’t seen the improvement from an order fulfillment perspective. So I think that’s a wait and see as well as we exit the season here into the winter. So I think what we’re seeing here is more of a normalization of that business coming off a historic high in ’23 and the fact that we’ll get back to where we used to be. We’re building stock within the winter units and then as spring kicks off, we start seeing the order intake pick up.

So I think what we’re seeing overall is the normalization in street sweeper and our truck business, where we’ll see a wall here in Q1, and then it will pick up as the shows kick-off in the spring time of the following year, which is the historic pattern at was that business previous to COVID.

Mike Shlisky: Outstanding. Maybe just one last one for me. On the Type A school buses, I was wondering if you could give us an update on the EV products, how that’s been taking off and order intake for that particular area. Thank you.

Mark Skonieczny: Yeah. So I think for the school bus business, we’re seeing relatively low intake. I think we’re meeting the requirements. It’s still less than 100 when you look at our total Collins business that produces though. So it’s not — those are accretive those buses, but it’s not a main driver on the results of our school bus business.

Mike Shlisky: Okay. Thanks so much. I’ll pass the line.

Mark Skonieczny: All right. Thanks, Mike.

Operator: Thank you. Mr. Skonieczny, we have no further questions at this time. I would like to turn the floor back over to you for closing comments.

Mark Skonieczny: Yes. Thank you, operator. So in closing, I would like to thank our entire team for their efforts throughout the past year, and I wish everyone on the call a safe and happy holiday season. So thank you again for joining us today.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

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