What REV Group, Inc. told the SEC could break it.

REV Group is a direct purchaser of commodities — aluminum and raw steel — and also buys components and parts containing aluminum, fiberglass, copper and steel that are integrated into its end products. Price increases or supply tightness in these metals and materials raise vehicle build costs and pressure margins, particularly where fixed-price or backlog orders limit its ability to pass through cost inflation. This commodity exposure is also the channel through which metals tariffs flow into its cost base.

“We are a purchaser of certain commodities, including aluminum and raw steel.”

As a steel- and aluminum-intensive vehicle manufacturer, REV Group is exposed to tariffs on metals and imported components. The impact is realized: the company cited tariff impacts (alongside other inflationary pressures and lower unit shipments) as a driver of a $4.0 million Adjusted EBITDA decline in its Recreational Vehicles segment, partially offset by pricing actions. Continued tariff escalation on aluminum, steel, copper and component imports would further raise its input costs.

“Recreational Vehicles segment Adjusted EBITDA decreased $4.0 million in fiscal year 2024 compared to the prior year primarily due to inflationary pressures, including tariff impacts, lower unit shipments, and increased retail assistance on certain models, partially offset by pricing actions and favorable category mix.”

REV Group assembles specialty vehicles (fire trucks, ambulances, RVs, buses, terminal trucks) and depends on outside suppliers for critical drivetrain components. It states that certain important components such as engines and transmissions are produced by a limited number of qualified suppliers, and in some cases it relies on a single supplier for a specific component; any disruption in that supply would negatively impact its manufacturing and sales. Chassis and powertrain availability has historically been a constraint for the specialty-vehicle industry, making this single/limited-source dependency a core operational risk.

“Additionally, certain important components that we use in our vehicles, such as engines and transmissions, are produced by a limited number of qualified suppliers or we may have a single supplier sourcing a specific component, and any disruption in their supply of such components to us would have a negative impact on our business.”