THOR Industries Inc. (NYSE:THO) stock rose Tuesday after the recreational vehicle maker reported fourth-quarter revenue above expectations.
THOR reported adjusted earnings of 78 cents per share, below the analyst estimate of 96 cents.
Quarterly sales totaled $2.312 billion, topping the consensus estimate of $2.168 billion.
THOR Industries CEO Bob Martin said the RV market never reached the inflection point many in the industry had expected in fiscal 2026. He said stubborn interest rates, elevated fuel costs and persistent inflation kept household budgets under pressure and retail demand soft through the key selling season.
THOR Revenue Beats Expectations
THOR said its European business continued to provide geographic diversification as the North American RV market remained under pressure.
Independent dealer inventory turns improved from the previous quarter. Dealer inventory also remained at healthy levels as the company entered fiscal 2027.
Gross profit fell 23% year over year to $285.6 million. Gross margin contracted 230 basis points to 12.4%.
Adjusted EBITDA declined 37.1% to $131.7 million.
THOR also repurchased $34.3 million of shares during the quarter.
North American RV Sales Remain Under Pressure
North American Towable net sales fell 22.7% year over year, driven partly by a 19.7% decline in unit shipments. Fifth-wheel shipments dropped 34.7%.
The company cited a weak retail environment and cautious ordering by independent dealers. Dealer towable inventory was down 16% year over year as of July 31.
The segment’s gross margin fell 280 basis points due to lower volumes, an unfavorable product mix, higher promotional activity and increased material costs.
North American Motorized net sales declined 10.4%, while unit shipments fell 13.1%. Gross margin dropped 600 basis points amid lower sales and higher material, overhead and warranty costs.
European RV Business Grows
European RV net sales increased 5% year over year. Unit shipments rose 3.9%, while the average net price per unit increased 1.1%.
Results also benefited from lower promotional activity and a shift toward higher-priced motorized products.
European RV gross margin declined 30 basis points.
THOR Sees Flat Fiscal 2027 Market
THOR expects a relatively flat retail environment in fiscal 2027, with near-term industry headwinds expected to continue.
The company plans to provide fiscal 2027 and longer-term earnings guidance later this fall. It will also outline expected savings from restructuring and other strategic initiatives.
Once fully implemented, THOR expects those initiatives to reduce costs and improve its earnings profile by more than $100 million annually.
Management said the RV industry remains in an extended down cycle and acknowledged that current earnings remain below its desired level.
However, the company said consumer interest in the RV lifestyle remains intact. THOR also expressed confidence that financial performance could improve when the RV market recovers.
THO Price Action: Thor Industries shares were up 4.66% at $73.20 at the time of publication on Tuesday, according to Benzinga Pro data.
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