Recreational vehicle (RV) manufacturer Thor Industries, Inc. (NYSE:THO) shares are trading lower on Tuesday. The company reported second-quarter FY26 results and below-consensus outlook.
Earnings Snapshot
- The company clocked earnings per share of 34 cents, significantly beating the analyst consensus of three cents.
- Quarterly sales of $2.126 billion, up 5.3% year over year (Y/Y), outpaced the Street view of $1.962 billion.
- Gross profit grew 2.5% Y/Y to $251.3 million, while margins contracted 30 basis points Y/Y to 11.8%.
- Adjusted EBITDA increased 12.7% Y/Y to $98.1 million in the quarter.
- The company ended the period with $242.2 million in cash and equivalents.
Segment Performance
The North American Towable RV segment experienced a 14.2% Y/Y decrease in net sales, totaling $710.5 million for the quarter. Unit shipments were down 23.0% Y/Y in the quarter. The backlog for this segment was $621 million.
Given the decline in sales and shipments, the segment’s gross profit margin contracted by 50 basis points to 10.6%.
The North American Motorized RV segment sales increased 29.3% Y/Y to $577 million, on a 28.3% Y/Y increase in unit shipments. The backlog for this segment was $1.04 billion.
The gross profit margin for the segment expanded by 170 basis points to 9.5%, aided by volume leverage and lower labor costs.
The European RV segment reported an 11.8% Y/Y increase in net sales for the quarter, reaching $684.5 million. Unit shipments in this segment rose 0.2% Y/Y. The segment’s backlog stood at $1.83 billion.
The gross profit margin percentage decreased by 220 basis points to 11.0% owing to a higher mix of lower-margin special-edition motorcaravan products and higher warranty costs.
Todd Woelfer, Senior Vice President and Chief Operating Officer, added, ”The European segment results included further restructuring costs this quarter that will have a long-term benefit to the segment’s operating results as we right-size its footprint and position the segment for further improvements to its margin profile. Despite the non-recurring costs and pressures from the overall European market, our European segment remains aligned with our internal full-year plan, and we expect it will follow its typically back-loaded fiscal second half,”
Thor Industries Outlook
Thor Industries confirms its fiscal 2026 EPS guidance of $3.75–$4.25 versus the consensus of $4.29 and sales outlook of $9.0–$9.5 billion, compared with the $9.639 billion estimate.
“Recent geopolitical events have clouded our outlook,” Woelfer says. There’s “too much short-term uncertainty for us to raise our full-year guidance at this time.”
“Our performance across the first half of our fiscal year gives us increased confidence in our full-year results, with the company well-positioned at the midpoint of our fiscal year to potentially outperform our initial guidance. However, we remain mindful of broader consumer uncertainty and how recent events could impact that uncertainty.”
Price Action: THO shares are trading lower by 4.61% at $91.28 at the last check on Tuesday.
Image: Shutterstock
Recent Comments