Rev Group Inc. (REVG) saw its stock soar 5.19% in Thursday's pre-market trading, following the company's impressive first-quarter fiscal 2025 earnings report that exceeded analysts' expectations. The surge was primarily driven by strong sales growth in Rev Group's Specialty Vehicles segment, particularly in its fire apparatus and ambulance businesses.

According to the earnings release, Rev Group posted record first-quarter adjusted EBITDA of $36.8 million, a significant increase of $6.3 million year-over-year. Excluding the impact of the divested bus businesses, adjusted EBITDA surged 79% to $16.2 million. This impressive performance was attributed to initiatives that resulted in increased sales of fire apparatus, a favorable mix of higher-priced ambulance units, and successful price realization efforts.

In the earnings call, management noted that the Specialty Vehicles segment achieved a record first-quarter adjusted EBITDA margin of 9.5%, reflecting improved operations, increased throughput, better cost controls, and higher profitability. The segment's backlog also reached a record high of $4.2 billion, driven by solid industry demand for fire apparatus and ambulances, as well as pricing actions to pass through inflationary pressures.