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Thor Industries(THO) - 2025 Q2 - Quarterly Results
THOThor Industries(THO)2025-03-05 11:31

Financial Performance - Consolidated net sales for Q2 fiscal 2025 were 2.02billion,down8.62.02 billion, down 8.6% from 2.21 billion in Q2 fiscal 2024[8]. - Net loss attributable to THOR Industries was (0.6)million,resultinginadilutedlosspershareof(0.6) million, resulting in a diluted loss per share of (0.01), compared to a net income of 7.2millionandearningspershareof7.2 million and earnings per share of 0.13 in the prior year[9]. - EBITDA for Q2 fiscal 2025 was 76.3million,downfrom76.3 million, down from 103.2 million in Q2 fiscal 2024[10]. - Consolidated net sales for the first half of fiscal 2025 were 4.16billion,downfrom4.16 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 3,089,000comparedtoaprofitof3,089,000 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,downfrom194,797,000, 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,downfrom76,344,000, 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 828.3million,drivenbya27.6828.3 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 612.5million,witha27.8612.5 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 1.64billion[11][13].GuidanceandProjections−Thecompanyreviseditsfull−yearfiscal2025guidance,projectingconsolidatednetsalesbetween1.64 billion[11][13]. Guidance and Projections - The company revised its full-year fiscal 2025 guidance, projecting consolidated net sales between 9.0 billion and 9.5billion[6].−Thecompanyexpectsconsolidatednetsalesforfiscal2025tobeintherangeof9.5 billion[6]. - The company expects consolidated net sales for fiscal 2025 to be in the range of 9.0 billion to 9.5billion,narrowingfromapreviousrangeof9.5 billion, narrowing from a previous range of 9.0 billion to 9.8billion[29].−Theupdatedgrossprofitmarginguidanceforfiscal2025isnowprojectedtobebetween13.89.8 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,revisedfrom4.00, revised from 4.00 to 5.00[29].OperationalEfficiencyandStrategy−Managementemphasizedastrategicfocusondeepeningdealerrelationshipsandaligningproductionwithretaildemandtooptimizeinventorylevels[16][17].−Thecompanygeneratedcashfromoperationsofapproximately5.00[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 61.6millionforthefiscalyear−to−date,improvingcashflowbyover61.6 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 51.5million,withafocusontime−sensitiveinvestments[20].−Thecompanyreducedtotalindebtednessbyapproximately51.5 million, with a focus on time-sensitive investments[20]. - The company reduced total indebtedness by approximately 90.5 million and returned 53.2milliontoshareholdersthroughdividends[20].LiquidityandFinancialPosition−AsofJanuary31,2025,thecompanyhadliquidityofapproximately53.2 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 373.8millionincashand373.8 million in cash and 855.0 million available under its credit facility[19]. - Cash and cash equivalents decreased to 373,819,000from373,819,000 from 501,316,000 year-over-year, representing a decline of approximately 25.4%[35]. - Total current assets decreased to 2,524,469,000from2,524,469,000 from 2,650,027,000, a reduction of approximately 4.7%[35]. - Long-term debt decreased to 1,003,395,000from1,003,395,000 from 1,101,265,000, indicating a reduction of about 8.9%[35]. - Stockholders' equity decreased to 3,953,495,000from3,953,495,000 from 4,074,053,000, a decline of approximately 3.0%[35]. - Inventories increased slightly to 1,379,419,000from1,379,419,000 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 0forthesixmonthsendedJanuary31,2025,comparedtoanincomeof0 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].