Recreational vehicle maker Thor Industries (THO) hit a speed bump on Wednesday, reporting fiscal third-quarter earnings that fell short of Wall Street's expectations even as revenue managed to sneak past the consensus. The company also trimmed its full-year profit outlook, blaming a cautious consumer and a bumpy macroeconomic road.
For the quarter ended April 30, Thor earned $1.86 per share, missing the analyst estimate of $1.98. Revenue slipped 3.9% from a year ago to $2.78 billion, but that was better than the $2.65 billion analysts had braced for. Gross profit took a bigger hit, falling 19.9% to $354.8 million, and gross margin contracted 250 basis points to 12.8%. Adjusted EBITDA dropped 28% to $183.6 million. The company ended the quarter with $371.9 million in cash.
Towable RV Weakness Weighs on Results
The biggest drag came from Thor's North American Towable RV segment, where net sales tumbled 24.6% year over year as unit shipments fell 25%. The culprit: weak retail demand and cautious ordering by independent dealers who are reluctant to stock up. The segment's backlog stood at $386 million as of April 30. Gross margin for towables shrank 470 basis points, squeezed by lower volumes, higher material costs, and an unfavorable product mix.
The North American Motorized RV segment fared better, with net sales up 7.7% and shipments rising 9.1%. Its backlog hit $766 million. But gross margin still declined 170 basis points due to higher material, warranty, and overhead costs.
European RV sales rose 11.8% year over year, with unit shipments up 4.2% and net price per unit climbing 7.6% (including an 8.2% boost from foreign exchange gains). The segment's backlog totaled $1.36 billion. Gross margin there fell 180 basis points, weighed down by higher material costs, a shift toward lower-margin special-edition motorcaravans, and higher warranty expenses.
Thor Cuts Earnings Outlook
“Our results through the first three quarters of fiscal 2026 reflect the persistent macroeconomic pressures weighing on the broader RV market, including a challenged retail environment driven in large part by low consumer confidence, cautious independent dealer ordering patterns and ongoing tariff-related and inflationary cost dynamics that continue to negatively impact industry-wide performance,” said Todd Woelfer, senior vice president and chief operating officer.
Thor lowered its fiscal 2026 GAAP earnings forecast to a range of $3.30 to $3.80 per share, down from the prior range of $3.75 to $4.25. The new outlook falls well short of the analyst consensus of $4.07 per share. The company held its revenue guidance steady at $9.0 billion to $9.5 billion, while analysts are looking for $9.53 billion.
Woelfer added, “Given the prolonged geopolitical and macroeconomic conditions and the resulting pressure on consumer confidence and retail demand, we believe it is prudent to revise portions of our full-year guidance. Despite this revision, we remain confident in our ability to execute through the remainder of fiscal 2026 and position THOR to outperform when market conditions stabilize.”
Thor shares were down 0.12% at $77.45 at the time of publication Wednesday.
