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Thor Industries Quarterly Results Slide on Weak Demand For Recreational Vehicles

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Thor Industries Quarterly Results Slide on Weak Demand For Recreational Vehicles

Thor Industries' (THO) fiscal fourth-quarter results declined on a yearly basis as macro headwinds are expected to continue weighing on demand for recreational vehicles, or RVs.

The RV maker's earnings fell to $0.78 a share during the July quarter from $2.36 the year before. Sales dropped 8.4% to $2.31 billion, but surpassed the FactSet-polled consensus view of $2.17 billion.

"Our fiscal 2026 proved to be more challenging than we anticipated at the outset of the year due to the headwinds impacting the RV industry," Chief Executive Bob Martin said in a statement. "The retail market never reached the inflection point many in the industry expected, as stubborn interest rates, elevated fuel costs and ever-present inflationary pressures have strained household budgets and kept retail soft throughout the critical selling season."

The company anticipates a flat retail market in fiscal 2027, with "many of the same headwinds" persisting over the near term, Chief Operating Officer Todd Woelfer said.

Thor withheld its formal guidance to incorporate dealer demand signals at key September industry events in Hershey and Elkhart, Woelfer said. The Hershey RV show ran from Sept. 16 to Sept. 20, while the Elkhart RV dealer open house will be held toward the end of this month.

"Due to the key insights these events provide, we have determined that it is prudent to allow time to gather this input prior to providing fiscal 2027 guidance," Woelfer added.

In a note on Monday, Truist Securities said that commentary from dealers at the Hershey RV show indicates that the industry outlook remains soft.

"The 2027 horizon in RV demand looks to be another year of deferred recovery as higher fuel prices and interest rates add to existing headwinds," Truist said.

Thor will provide details of expected cost savings, along with its guidance, later this fall, Woelfer said. The brokerage expects Thor to provide guidance with fiscal first-quarter results, according to a separate Tuesday note.

The company expects its strategic initiatives and restructuring to improve its earnings by more than $100 million a year once fully implemented, he said.

Revenue in the North American towable RV segment tumbled 23% year over year to $687.3 million in the fourth quarter amid a 20% decline in unit shipments, Thor said. Revenue from motorized RVs in North America fell 10% to $499.3 million, with shipments down 13%.

Thor stock was up 3.8% in Tuesday trading and has fallen 29% this year.

In June, outdoor recreation products manufacturer Winnebago Industries (WGO) reported fiscal third-quarter results below the Street's expectations and lowered the full-year earnings guidance.

Price: $72.41, Change: $+2.47, Percent Change: +3.52%

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