Core Insights - THOR Industries, Inc. has appointed Seth Woolf as Head of Corporate Development & Investor Relations, aiming to enhance long-term corporate initiatives and capital markets communications [1][2] - Woolf brings over 15 years of investment industry experience, particularly in the recreational vehicle sector, which will aid THOR in navigating market dynamics and supporting growth [2] Company Overview - THOR Industries is the largest manufacturer of recreational vehicles globally, owning several operating subsidiaries [3]

ELKHART, Ind., May 5, 2025 /PRNewswire/ -- THOR Industries, Inc. (NYSE: THO) today announced a strategic partnership between Jayco, Inc. ("Jayco") and Tiffin Motorhomes ("Tiffin") whereby production of Class A diesel motorhomes for the Entegra Coach brand will transition from Jayco to Tiffin at its facilities in Red Bay, Alabama. This move allows Jayco to expand production capacity while ensuring that Entegra customers continue to receive the superior quality and attention to detail that they expect from an ...

Core Viewpoint - THOR Industries, Inc. is undergoing a strategic organizational restructuring to optimize its enterprise structure and strengthen its brand portfolio, integrating Heartland Recreational Vehicles under Jayco, Inc. to enhance operational efficiencies and streamline business processes [1][2]. Group 1: Restructuring Details - The restructuring aims to rationalize brands and right-size product lineups in response to current market conditions and customer demands, particularly in the context of significant dealer consolidation in the U.S. RV market [2]. - Heartland's integration under Jayco is expected to leverage Jayco's operational excellence and customer service, potentially maximizing the performance of Heartland's brands [2][3]. - Certain private label brands from Heartland will be transferred to Dutchmen Manufacturing, which is expected to improve operating leverage and maintain strong margins [4]. Group 2: Strategic Benefits - The restructuring is anticipated to yield strategic benefits such as improved synergies across brands, reduced operating costs, enhanced customer service capabilities, and a more efficient distribution strategy, all contributing to improved margins for THOR companies [5]. - The transition will focus on ensuring a seamless integration process for employees, dealers, and customers, maintaining high standards of service and product quality for current Heartland owners and dealers [6]. Group 3: Leadership Insights - Bob Martin, President and CEO of THOR, highlighted the restructuring as a commitment to long-term growth and efficiency in the RV industry, reflecting the company's dedication to adapting to an evolving marketplace [2][6]. - Ken Walters, President of Jayco, emphasized the importance of maintaining excellence in products and customer relationships as Heartland is integrated into the Jayco family [3].

Core Viewpoint - Thor Industries, the largest RV maker globally, experienced a significant decline in stock value following disappointing financial results, with shares dropping nearly 14% over the past week [1] Financial Performance - For Q2 of fiscal 2025, Thor reported net sales of just over $2 billion, reflecting a nearly 9% year-over-year decline [2] - The company posted a GAAP net loss of $551,000 ($0.01 per share), contrasting with a profit of $7.2 million in the same quarter of fiscal 2024 [2] - Analysts had anticipated earnings of $0.08 per share, but net sales exceeded their expectations of $1.97 billion [3] Guidance and Market Conditions - Thor cited the challenging economic environment as a headwind, with CEO Bob Martin emphasizing a focus on controllable factors such as product offerings and dealer relationships [4] - The company revised its full fiscal year guidance, projecting net sales between $9 billion and $9.5 billion, down from a previous estimate of $9.8 billion, and lowered per-share earnings estimates to a range of $3.30 to $4.00 from $4.00 to $5.00 [4] Market Outlook - Despite the disappointing results, Thor remains a significant player in the RV market, with ongoing consumer interest in travel experiences suggesting potential for future growth [5]

Thor Industries, Inc. (THO) reported a loss of 1 cent per share for the second quarter of fiscal 2025 (ended Jan. 31, 2025), in contrast to the Zacks Consensus Estimate of earnings of 7 cents. The company reported earnings of 40 cents per share in the corresponding quarter of fiscal 2024.The company registered revenues of $2.02 billion for the fiscal second quarter, beating the Zacks Consensus Estimate of $1.97 billion. The top line, however, declined 8.6% year over year.See the Zacks Earnings Calendar to s ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Core Insights - Thor Industries reported revenue of $2.02 billion for the quarter ended January 2025, reflecting an 8.6% decline year-over-year, with an EPS of -$0.01 compared to $0.40 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.97 billion by 2.34%, while the EPS fell short of the consensus estimate of $0.07 by 114.29% [1] Financial Performance Metrics - Total unit sales for recreational vehicles reached 40,981, surpassing the three-analyst average estimate of 36,524 [4] - European recreational vehicle unit sales were 9,442, below the average estimate of 10,799 [4] - North American towable unit sales were 28,013, exceeding the average estimate of 22,587 [4] - Net sales for recreational vehicles in Europe were $612.47 million, falling short of the average estimate of $730.31 million, representing a year-over-year decline of 21.7% [4] - Total North American net sales for recreational vehicles were $1.27 billion, exceeding the average estimate of $1.10 billion, but reflecting a 2.1% decline year-over-year [4] - Net sales for North American towable recreational vehicles were $828.27 million, surpassing the average estimate of $664.70 million, with a year-over-year increase of 13.3% [4] - Total net sales for recreational vehicles were $1.89 billion, slightly above the average estimate of $1.83 billion, but down 9.4% from the previous year [4] - North American motorized recreational vehicle net sales were $446.30 million, exceeding the average estimate of $431.70 million, with a year-over-year decline of 21.8% [4] - Intercompany eliminations reported a net sales figure of -$54.58 million, worse than the average estimate of -$42.45 million, reflecting a 27.4% increase year-over-year [4] - Other net sales were $185.65 million, above the average estimate of $170.45 million, with an 11.5% year-over-year increase [4] Stock Performance - Thor Industries' shares have returned -6.4% over the past month, compared to a -4.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Thor Industries reported a quarterly loss of $0.01 per share, missing the Zacks Consensus Estimate of $0.07, and down from earnings of $0.40 per share a year ago, indicating a significant earnings surprise of -114.29% [1] Financial Performance - The company posted revenues of $2.02 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.34%, but down from $2.21 billion in the same quarter last year [2] - Over the last four quarters, Thor Industries has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Thor Industries shares have lost about 0.5% since the beginning of the year, while the S&P 500 has declined by -1.8% [3] - The current Zacks Rank for Thor Industries is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $2.14 on revenues of $2.7 billion, and for the current fiscal year, it is $4.47 on revenues of $9.39 billion [7] - The estimate revisions trend for Thor Industries is mixed, and future changes in estimates will be closely monitored [6][7] Industry Context - The Building Products - Mobile Homes and RV Builders industry is currently in the top 18% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Winnebago Industries, a competitor in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $0.23, down 75.3% year-over-year [9]

North American Market Performance - THOR's North American market share for travel trailers and fifth wheels was approximately 39.0%, and for motorhomes, it was approximately 47.2% as of December 31, 2024[79]. - North American RV backlog increased by $289,604, or 15.2%, to $2,198,493 as of January 31, 2025, compared to $1,908,889 a year earlier[82]. - North American RV independent dealer inventory decreased by 1.8% to approximately 86,200 units as of January 31, 2025, from approximately 87,800 units a year prior[81]. - Total North American wholesale unit shipments for 2024 were 333,733, an increase of 6.6% from 313,174 in 2023[83]. - North American towable units retail registrations decreased by 6.4% to 315,179 in 2024 from 336,601 in 2023[84]. - THOR's North American wholesale RV shipments for towable units increased by 14.5% to 116,913 in 2024, while motorized units decreased by 24.8% to 16,099[86]. - The RVIA projects a total of approximately 350,100 wholesale unit shipments for 2025, representing a 4.9% increase from 2024[83]. - The company anticipates long-term growth in the North American RV industry driven by consumer interest in the RV lifestyle[89]. Economic Factors and Challenges - Economic factors such as inflation, interest rates, and consumer confidence are expected to impact retail sales in fiscal 2025[88]. - The company is closely monitoring potential increases in raw material and labor costs, which could negatively impact profit margins[90]. European Market Performance - European RV backlog decreased by $1,102,292, or 40.1%, to $1,644,015 as of January 31, 2025, compared to $2,746,307 as of January 31, 2024[96]. - Independent dealer inventory of European RV products increased by 3.6% to approximately 25,700 units as of January 31, 2025, compared to approximately 24,800 units as of January 31, 2024[95]. - Total European unit registrations for motorcaravans and campervans increased by 7.3% to 138,743 in 2024 from 129,269 in 2023[97]. - Total European unit registrations for caravans decreased by 2.3% to 46,628 in 2024 from 47,740 in 2023[97]. - European net sales for recreational vehicles decreased by $169,829, or 21.7%, to $612,465 for the three months ended January 31, 2025, compared to $782,294 for the same period in 2024[109]. - European unit sales decreased by 27.8% to 9,442 units for the three months ended January 31, 2025, compared to 13,080 units for the same period in 2024[110]. - Gross profit for European recreational vehicles decreased by $38,396, or 32.2%, to $80,929 for the three months ended January 31, 2025, compared to $119,325 for the same period in 2024[110]. - The company anticipates a long-term positive outlook for European RV retail sales as more consumers seek RVs for lifestyle independence and outdoor exploration[102]. Financial Performance - Consolidated net sales for the three months ended January 31, 2025 decreased by $189,262, or 8.6%, compared to the same period in 2024[113]. - Consolidated gross profit for the three months ended January 31, 2025 decreased by $25,650, or 9.5%, with a gross profit margin of 12.1% compared to 12.3% in the prior year[114]. - Selling, general and administrative expenses decreased by $13,903, or 6.3%, primarily due to lower sales commissions and incentive compensation[115]. - Income (loss) before income taxes decreased by $8,494, or 123.2%, primarily driven by the decrease in consolidated net sales[117]. - The effective income tax rate for the three months ended January 31, 2025 was (93.1)%, compared to 22.7% in the prior year, influenced by the jurisdictional mix of earnings[118]. North American Towable Segment - North American Towable net sales increased by 13.3% to $828,266, driven by a 27.6% increase in unit shipments[123]. - The cost of products sold for North American Towable increased to $736,620, or 88.9% of net sales, but the percentage decreased from 92.6% in the prior year[125]. - North American Towable gross profit increased by $37,749, attributed to higher net sales and improved gross profit percentage[127]. - North American Towable income before income taxes increased by $27,491, reflecting the rise in net sales and improved cost structure[129]. - Order backlog for North American Towable increased by $237,556, or 28.4%, from the previous year[112]. North American Motorized Segment - North American Motorized net sales decreased by 21.8% to $446,298,000 for the three months ended January 31, 2025, compared to $570,424,000 for the same period in 2024[131]. - Total unit shipments for North American Motorized decreased by 20.5% to 3,526 units, down from 4,438 units in the prior-year quarter[131]. - North American Motorized cost of products sold decreased by $98,146,000 to $411,557,000, representing 92.2% of net sales[133]. - North American Motorized gross profit decreased by $25,980,000 due to lower net sales and increased cost of products sold[135]. - North American Motorized income before income taxes decreased by $22,162,000, attributed to lower net sales and increased expenses[137]. European Recreational Vehicle Segment - European Recreational Vehicle net sales decreased by 21.7% to $612,465,000 for the three months ended January 31, 2025, compared to $782,294,000 for the same period in 2024[139]. - Total unit shipments for European Recreational Vehicles decreased by 27.8% to 9,442 units, down from 13,080 units in the prior-year quarter[139]. - The overall net price per unit for European Recreational Vehicles increased by 6.1%, despite a 2.8% decrease due to foreign currency impacts[140]. - European Recreational Vehicle cost of products sold decreased by $131,433,000 to $531,536,000, representing 86.8% of net sales[143]. - European Recreational Vehicle gross profit decreased by $38,396,000, primarily due to decreased net sales and increased manufacturing overhead[145]. Consolidated Financial Overview - Consolidated net sales for the six months ended January 31, 2025 decreased by $547,237, or 11.6%, compared to the same period in 2024[153]. - Total North American recreational vehicle sales decreased by $279,455, or 9.4%, with North American motorized sales dropping by $330,077, or 25.8%[149]. - Gross profit for the six months ended January 31, 2025 decreased by $102,140, with a gross profit margin of 12.7% compared to 13.4% in the prior year[154]. - Selling, general and administrative expenses increased by $8,398, or 1.9%, despite a decrease in net sales[155]. - Income (loss) before income taxes decreased by $82,232, or 103.5%, primarily due to the decline in consolidated net sales[156]. - The effective income tax rate for the six months ended January 31, 2025 was (43.7)%, compared to 24.0% in the prior year, influenced by the jurisdictional mix of earnings[157]. Currency and Interest Rate Impact - Approximately 29.3% of consolidated net sales were transacted in currencies other than the U.S. dollar, with significant exposure to Euro sales[153]. - A hypothetical 10% change in the Euro/U.S. Dollar exchange rate would change the company's Euro-denominated debt balance by approximately $36,538[206]. - A one-percentage-point increase in interest rates would result in an estimated $5,030 reduction in income before income taxes over a one-year period[207]. Capital Expenditures and Cash Flow - Net cash provided by operating activities for the six months ended January 31, 2025, was $61,582, compared to a net cash used of $44,200 for the same period in 2024[194]. - Cash and cash equivalents decreased by $127,497 from $501,316 on July 31, 2024, to $373,819 as of January 31, 2025, primarily due to cash used in financing activities of $167,005[188]. - Net working capital at January 31, 2025, was $1,050,077, down from $1,083,005 at July 31, 2024[189]. - Capital expenditures for the six months ended January 31, 2025, were $51,538, primarily for production building additions and improvements[189]. - The company plans to spend approximately $125,000 on committed capital projects for the remainder of fiscal 2025, with two-thirds allocated to North America and one-third to Europe[192]. Dividend and Corporate Costs - The company increased its quarterly dividend from $0.48 to $0.50 per share in October 2024, following a previous increase from $0.45 to $0.48 in October 2023[200]. - Net cash used in financing activities for the six months ended January 31, 2025, was $167,005, primarily for term-loan payments of $85,000 and dividend payments totaling $53,153[198]. - Corporate costs in selling, general and administrative expenses increased by $16,304, primarily due to employee separation costs and deferred compensation expenses[159]. Pricing Trends - The overall net price per unit in the travel trailer product line decreased by 17.8% due to a shift towards more moderately-priced units compared to the prior-year period[164]. - North American Towable net sales increased by 3.0%, driven by a 15.9% increase in unit shipments, despite a 12.9% decrease in net price per unit[163]. - The overall net price per unit in the European Recreational Vehicle segment increased by 9.3%, with a constant-currency increase of 9.6% attributed to product mix and selling price increases[181].

Financial Performance - Consolidated net sales for Q2 fiscal 2025 were $2.02 billion, down 8.6% from $2.21 billion in Q2 fiscal 2024[8]. - Net loss attributable to THOR Industries was $(0.6) million, resulting in a diluted loss per share of $(0.01), compared to a net income of $7.2 million and earnings per share of $0.13 in the prior year[9]. - EBITDA for Q2 fiscal 2025 was $76.3 million, down from $103.2 million in Q2 fiscal 2024[10]. - Consolidated net sales for the first half of fiscal 2025 were $4.16 billion, down from $4.71 billion in the prior year, reflecting a decrease in gross profit margin from 13.4% to 12.7%[33]. - Net income for the three months ended January 31, 2025, was a loss of $3,089,000 compared to a profit of $5,326,000 in the same period last year[38]. - Adjusted EBITDA for the six months ended January 31, 2025, was $194,797,000, down from $275,604,000 in the prior year, reflecting a decrease of about 29.3%[38]. - EBITDA for the three months ended January 31, 2025, was $76,344,000, down from $103,242,000, a decrease of approximately 26.0%[38]. Sales and Market Trends - North American Towable RV net sales increased 13.3% to $828.3 million, driven by a 27.6% increase in unit shipments[11]. - North American Motorized RV net sales decreased 21.8% to $446.3 million, primarily due to a 20.5% reduction in unit shipments[12]. - European RV net sales decreased 21.7% to $612.5 million, with a 27.8% decline in unit shipments[13]. - The order backlog for North American Towable RVs increased by 28.4% to $1.07 billion, while the backlog for European RVs decreased by 40.1% to $1.64 billion[11][13]. Guidance and Projections - The company revised its full-year fiscal 2025 guidance, projecting consolidated net sales between $9.0 billion and $9.5 billion[6]. - The company expects consolidated net sales for fiscal 2025 to be in the range of $9.0 billion to $9.5 billion, narrowing from a previous range of $9.0 billion to $9.8 billion[29]. - The updated gross profit margin guidance for fiscal 2025 is now projected to be between 13.8% and 14.5%, down from the previous range of 14.7% to 15.2%[29]. - Diluted earnings per share are now expected to be in the range of $3.30 to $4.00, revised from $4.00 to $5.00[29]. Operational Efficiency and Strategy - Management emphasized a strategic focus on deepening dealer relationships and aligning production with retail demand to optimize inventory levels[16][17]. - The company generated cash from operations of approximately $30.8 million in the second quarter, totaling $61.6 million for the fiscal year-to-date, improving cash flow by over $100 million compared to the first half of the previous year[19]. - Capital expenditures for the first half of fiscal 2025 were approximately $51.5 million, with a focus on time-sensitive investments[20]. - The company reduced total indebtedness by approximately $90.5 million and returned $53.2 million to shareholders through dividends[20]. Liquidity and Financial Position - As of January 31, 2025, the company had liquidity of approximately $1.23 billion, including $373.8 million in cash and $855.0 million available under its credit facility[19]. - Cash and cash equivalents decreased to $373,819,000 from $501,316,000 year-over-year, representing a decline of approximately 25.4%[35]. - Total current assets decreased to $2,524,469,000 from $2,650,027,000, a reduction of approximately 4.7%[35]. - Long-term debt decreased to $1,003,395,000 from $1,101,265,000, indicating a reduction of about 8.9%[35]. - Stockholders' equity decreased to $3,953,495,000 from $4,074,053,000, a decline of approximately 3.0%[35]. - Inventories increased slightly to $1,379,419,000 from $1,366,638,000, reflecting a growth of about 0.9%[35]. Market Outlook - The company remains cautious about the market outlook despite an upward revision in the RVIA's forecast for 2025, citing concerns over consumer confidence and tariff impacts[24]. - European RV gross profit margin decreased to 13.2% of net sales in Q2 fiscal 2025, down from 15.3% in the prior-year period, primarily due to increased manufacturing overhead costs[23]. - The company reported a net expense related to certain contingent liabilities of $0 for the six months ended January 31, 2025, compared to an income of $14,200,000 in the prior year[38]. - The company considers Adjusted EBITDA a meaningful measure for evaluating ongoing operating trends, despite it not being a GAAP measure[39].