American recreational vehicle (RV) manufacturer. Thor Industries, Inc. (NISTINGS: HOUL Shares rose on Wednesday after the company reported strong results for the first quarter of fiscal 2026. The stock has since given up its gains and is now trading lower.
Thor Industries clocked earnings per share of 41 cents, surpassing the analyst consensus of a loss of 8 cents.
Quarterly revenue of $2.389 billion, up 11.5% year-over-year (Y/Y), surpassed Street View’s $2.053 billion.
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Gross profit in the quarter under review grew 14.0% year-over-year to $321.0 million, while gross margin grew 30 basis points to 13.4%. Quarterly adjusted EBITDA increased 21.5% year over year to $131.0 million.
The company reported operating cash outflows of $44.9 million for the quarter and ended the period with $509.9 million in cash and equivalents.
In North America, the company said strategic initiatives drove margin gains in the Towable segment despite flat sales, while the Motorized segment and suppliers contributed to both revenue and profit growth.
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 saw a 0.2% year-over-year decline in net sales, totaling $897.1 million for the quarter. Unit shipments fell 14.0% year over year in the quarter.
Despite the decline in sales and shipments, the segment’s gross profit margin improved 80 basis points to 13.3%.
The order book for this segment amounted to $656 million as of October 31.
The North American motorized RV segment saw a 30.9% year-over-year increase in net sales to $661.1 million, driven by a 32.3% year-over-year increase in unit shipments.
Gross profit margin for the segment grew 230 basis points to 10.8%, helped by volume leverage and lower promotional activities and warranty costs.
The order book for this segment amounted to $1.28 billion, an increase of 32.5% year-on-year.
The European RV segment reported an 8.4% year-over-year increase in net sales for the quarter, to $655.5 million.
Unit shipments in this segment increased 1.0% year over year. Gross profit margin percentage decreased 340 basis points to 11.9% due to a higher mix of lower margin special edition RV products and increased promotional activities and warranty costs.
The segment’s order backlog was $1.93 billion, down 5.5% year over year.
Management commentary
Todd WoelferSenior Vice President and Chief Operating Officer, said, “The strong performance of our North American operations was supported by key data initiatives that continue to strengthen our operating companies, allowing 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 affirms its fiscal 2026 earnings forecast of $3.75-$4.25 versus the consensus of $4.15 and sales guidance of $9.0-$9.5 billion, compared to the $9.478 billion estimate.
“Looking ahead, we are increasingly confident that our business-specific initiatives will continue to gain momentum throughout the fiscal year, but we recognize that there is a wide range of outcomes related to consumer health as reflected in the consumer sentiment results. While the fiscal year is off to a strong start, we won’t get too excited about the off-season sales during such an uncertain time,” said Seth WoolfHead of Business Development and Investor Relations.
THO price promotion: Shares of Thor Industries were down 7.44% to $102.01 at the time of publication on Wednesday, according to data from Benzinga Pro.
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