Company Reports

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company manufactures and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. For fiscal 2026, the company generated 33% of revenue from North American towables, 26% of sales from the North American motorized segment, 34% of sales from Europe, and the remaining from parts.

Thor's fiscal 2026 fourth-quarter diluted EPS fell 66.9% year over year while gross margin fell 230 basis points to 12.4% and adjusted EBITDA fell 37.1%. Total units fell 12% but backlog rose 8% thanks to towables and Europe. Management is waiting until later in 2026 to give fiscal 2027 guidance.

Thor Industries' third-quarter fiscal 2026 earnings saw a 28% year-over-year decline in adjusted EBITDA, and management lowered full-year diluted EPS guidance to $3.30-$3.80 from $3.75-$4.25. Third-quarter buyback spending totaled $50.5 million.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company manufactures and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2025, the company generated 40% of revenue from North American towables, 23% of sales from the North American motorized segment, 32% of sales from Europe, and the remaining from parts.

Thor's fiscal 2026 second-quarter results saw the company maintain full-year guidance and post great improvement in North American motorhome pretax income. Management also warned about more uncertainty due to events in the Middle East.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company fabricates and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2025, the company generated 40% of revenue from North American towables, 23% of sales from North American motorized segment, 32% of sales from Europe, and the remaining from parts.

Thor's stock fell over 7% during Dec. 3 trading despite reporting a solidly profitable fiscal 2026 first quarter and 11.5% year-over-year revenue growth. Management confirmed fiscal 2026 guidance and said retail demand so far is better than expected.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company fabricates and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2025, the company generated 40% of revenue from North American towables, 23% of sales from North American motorized segment, 32% of sales from Europe, and the remaining from parts.

Thor's stock rose over 6% during Sept. 24 trading when the company reported fourth-quarter fiscal 2025 diluted EPS of $2.36, up 40.5% year over year and well above the $1.24 LSEG consensus. Thor introduced fiscal 2026 revenue guidance of $9.0 billion to $9.5 billion, down slightly from fiscal 2025.

Thor's fiscal 2025 third-quarter EPS rose 18.8% year over year to $2.53, far exceeding the $1.78 LSEG consensus. North American towable gross profit growth of 26.2% along with cost containment growth enabled a 30-basis-point operating margin rise to 6.1%. The company confirmed fiscal 2025 guidance.

Thor’s fiscal 2025 second quarter followed the first quarter’s loss with another loss, this time at $0.01 per share compared with an LSEG consensus profit of $0.07. Management also cut fiscal 2025 guidance as materials cost inflation has been worse than planned so far in fiscal 2025. Revenue increasing year over year by 12.1% and by 13.4% for the first half of the year is in line with management’s expectations, but full-year revenue is now guided to $9.0 billion-$9.5 billion from $9.8 billion on the high end previously. Higher costs now have the gross margin midpoint at about 14.1%, down from about 15%, leading to earnings per share of $3.30-$4.00 from $4.00-$5.00.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company fabricates and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2024, the company generated 37% of sales from North American towables, 24% of sales from North American motorized segment, 34% of sales from Europe, and the remaining from parts.

Thor management expects no improvement in demand until the second half of fiscal 2025, and fiscal first-quarter 2025 results on Dec. 4 show that the story is playing out. We are not changing our fair value estimate. A $15.5 million restructuring charge yielded negative earnings per share of $0.03, but management sees over $10 million of annual cost savings from headcount reductions and closure of an Idaho plant for the Heartland brand. The firm eliminated the management layer between Thor’s various North American subsidiaries and CEO Bob Martin so that he is more hands-on with his leadership, a role he’s had in the past.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company fabricates and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2024, the company generated 37% of sales from North American towables, 24% of sales from North American motorized segment, 34% of sales from Europe, and the remaining from parts.

Thor finished fiscal 2024 with a solid quarter despite continued soft demand. We are leaving our fair value estimate unchanged but will update our model for the 10-K shortly. A fair value reduction may occur as fiscal 2025 revenue guidance of $9.0 billion to $9.8 billion is below the $11.1 billion we model, as is the EPS guidance of $4.00-$5.00 versus our $7.65. Dealers remain wary of restocking North American inventory, and management, in our view prudently, does not expect improved sentiment until some time in second-half fiscal 2025. The Europe segment should decline from fiscal 2024 record sales due to dealer restocking there not repeating in fiscal 2025. Management feels its European inventory level is adequate but North America could be a bit lower given dealer sentiment. We and Thor management believe further US interest rate cuts are needed to meaningfully boost demand.

Thor’s fiscal 2024 third-quarter results forced the company to again cut its full-year guidance, but we don’t see a reason to change our fair value estimate. At the start of the fiscal year, management expected dealers' reluctance to meaningfully increase inventory would end during the second half of fiscal 2024. However, the lack of interest-rate cuts means dealers remain leery of holding excess inventory, and Thor now expects this weakness to continue into fiscal 2025. We agree with management, however, that macroeconomic conditions will eventually improve and consumer interest in eventually owning another recreational vehicle remains strong.

Thor’s stock fell by over 14% during March 6 trading after the firm’s fiscal 2024 second quarter saw management lower full-year guidance. We don’t see a permanent demand problem for the recreational vehicle industry in North America, we instead see the guidance change resulting from a delay in an inevitable inventory restocking, so we are leaving our fair value estimate in place. Management expected a second-half fiscal 2024 recovery in dealer demand, but that timing is now later in fiscal 2024 due to high interest rates and dealers remaining cautious on accumulating inventory when they still have 2023 model year product to sell. Inventories are low per Thor and 2025 model year product comes out in July, so we don’t see dealers keeping inventory low forever and we think high interest rates, rather than a lack of consumer demand, are delaying an inventory rebuild. Management is combating these dealer fears with more incentive spending, especially in motorhomes, but this means full-year gross margin is now expected to be 14.0%-14.5%, down from 14.5%-15%. That change, along with about $500 million less revenue guided, led to diluted earnings per share guidance falling to $5.00-$5.50 from $6.25-$7.25.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company fabricates and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2023, the company generated 38% of sales from its North American towables segment and 30% of sales from its North American motorized segment, while Europe accounted for 27% of sales.

We are raising our Thor Industries fair value estimate to $141 from $139 on the time value of money after the firm reported fiscal 2024 first-quarter results that maintained guidance while diluted EPS of $0.99 (down 60.9% year over year) beat the $0.98 Refinitiv consensus. Management has stressed a focus on profitability over volume and that showed in the results with revenue down 19.5% and unit deliveries falling 9.5%. North American towable and motorized deliveries fell by 13% and 31.5%, respectively, but the European segment grew volume 19.5% and swung to a profit from a loss a year ago. Europe saw higher pricing, including a 10-percentage-point revenue growth contribution from foreign currency translation as well as improvement in chassis availability, which the industry struggled with last year. Thor expects its European dealers to be at normalized levels for most brands by the end of fiscal second quarter, so we don’t expect robust first-quarter European growth to last for all fiscal 2024. Europe’s Oct. 31 backlog of $3.3 billion now makes up the majority of Thor’s total backlog of $5.4 billion and total backlog fell 27.8% from October 2022 and by 70.3% from October 2021.

Founded in 1980 via the acquisition of Airstream, Thor Industries has grown to become the world’s largest recreational vehicle manufacturer. The company fabricates and sells a wide array of vehicles through three segments: North American towables, North American motorized, and Europe. Additionally, the company sells aftermarket component parts and digital solutions that are classified within its other segment. During fiscal 2023, the company generated 38% of sales from its North American towables segment and 30% of sales from its North American motorized segment, while Europe accounted for 27% of sales.