Specialty vehicle manufacturer Rev Group (REVG 15.80%) topped quarterly analyst expectations, fueled by strong demand for its firefighting vehicles. Investors are hopping on board, sending Rev Group shares up 14% as of 10:30 a.m. ET.

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Fire equipment leads the way

Rev is a maker of recreational vehicles (RVs) and specialty trucks including fire equipment, ambulances, and other public service vehicles. The company earned $0.70 per share in its fiscal second quarter ending April 30 on revenue of $629.1 million, surpassing Wall Street's consensus estimate of $0.57 per share on revenue of $603 million.

Net cash provided by operations totaled $103.9 million in the first six months of Rev's fiscal year, compared to a $29.6 million cash use during the same period a year ago.

RV sales fell 2.4% in the quarter due to lower shipments and increased dealer assistance, and segment backlog fell slightly. But that weakness was more than offset by a 3.8% jump in specialty vehicle sales, primarily driven by increased shipments of fire apparatus. The non-RV unit accounts for more than 70% of total sales and more than 90% of the company's backlog of future business.

"The standout this quarter was the sustained year-over-year increase in manufacturing throughput within the fire group, which played a pivotal role in driving our top-line growth," CEO Mark Skonieczny said in a statement. "Within the quarter we utilized our robust cash flow and financial position to repurchase $88 million of shares, which we view as an attractive use of capital."

Is Rev stock a buy?

Post-quarter Rev upped its full-year revenue guidance by $50 million and raised its free-cash-flow guidance to $100 million to $120 million, up from $90 million to $110 million.

The quarter demonstrates the balance Rev can offer between the cyclical RV business and the steadier safety vehicle unit. With interest rates higher than in years past and questions about the economy, consumer demand for big-ticket items like RVs is weak.

Investors should note that there is some risk that the federal government's push for efficiency could threaten local governments and lead to some weakness in vehicle purchases over time. But for now, it appears Rev still has some room to run.