American recreational vehicles (RV) manufacturer Thor Industries, Inc. (NYSE:THO) stock rose Wednesday after the company reported strong first-quarter fiscal 2026 results. The stock has since given up its gains and is now trading lower.
Thor Industries clocked earnings per share of 41 cents, beating the analyst consensus of a loss of eight cents.
Quarterly sales of $2.389 billion, up 11.5% year over year (Y/Y), outpaced the Street view of $2.053 billion.
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Gross profit in the quarter under review grew 14.0% Y/Y to $321.0 million, while gross margin expanded 30 basis points to 13.4%. Quarterly adjusted EBITDA increased 21.5% Y/Y to $131.0 million.
The company reported an operating cash outflow of $44.9 million for the quarter and ended the period with $509.9 million in cash and equivalents.
In North America, the company stated that strategic initiatives drove margin gains in the Towable segment despite flat sales, while the Motorized segment and supply companies contributed to growth in both revenue and earnings.
In Europe, EHG’s performance was impacted by the usual August shutdown and a highly competitive pricing environment, along with restructuring costs that are expected to improve long-term operating results.
Segment Performance
The North American Towable RV segment experienced a 0.2% Y/Y decrease in net sales, totaling $897.1 million for the quarter. Unit shipments were down 14.0% Y/Y in the quarter.
Despite the decline in sales and shipments, the segment’s gross profit margin improved 80 basis points to 13.3%.
The backlog for this segment as of October 31 was $656 million.
The North American Motorized RV segment saw a 30.9% Y/Y increase in net sales to $661.1 million, driven by a 32.3% Y/Y increase in unit shipments.
The gross profit margin for the segment expanded by 230 basis points to 10.8%, aided by volume leverage along with lower promotional activity and warranty costs.
The backlog for this segment was $1.28 billion, an increase of 32.5% Y/Y.
The European RV segment reported an 8.4% Y/Y increase in net sales for the quarter, reaching $655.5 million.
Unit shipments in this segment rose 1.0% Y/Y. The gross profit margin percentage decreased by 340 basis points to 11.9% owing to a higher mix of lower-margin special-edition motorcaravan products and increased promotional activity and warranty costs.
The segment’s backlog was $1.93 billion, a 5.5% Y/Y decrease.
Management Commentary
Todd Woelfer, Senior Vice President and Chief Operating Officer, said, “The strong results across our North American operations were supported by key data initiatives that continue to empower our operating companies, enabling them to quickly respond to the market and meet consumer demand. At the 2025 Open House we announced the RV Partfinder platform and received strong support from our dealer partners.”
Outlook
Thor Industries confirms its fiscal 2026 EPS guidance of $3.75–$4.25 versus the consensus of $4.15 and sales outlook of $9.0–$9.5 billion, compared with the $9.478 billion estimate.
“Looking ahead, we are incrementally more convinced that our company-specific initiatives will gain traction throughout the fiscal year but acknowledge that there is a wide range of outcomes related to the health of the consumer as evidenced by consumer sentiment results. While the fiscal year has gotten off to a strong start, we are not going to get overly excited about offseason sell-in during such an uncertain time,” said Seth Woolf, Head of Corporate Development & Investor Relations.
THO Price Action: Thor Industries shares were down 7.44% at $102.01 at the time of publication on Wednesday, according to Benzinga Pro data.
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