Thor Industries Q2 Sales Drop 8% Amid Macroeconomic Challenges, Narrows FY25 Outlook

Thor Industries, Inc. THO shares are trading lower in the premarket session on Wednesday.

The company reported second-quarter loss per share of one cent, missing the street view of 6 cents earnings per share.

Quarterly sales of $2.02 billion (down 8.6% year over year) outpaced the analyst consensus estimate of $1.974 billion.

Gross profit margin in the quarter under review contracted by 20 basis points year over year to 12.1% amid “continued macroeconomic headwinds”.

Adjusted EBITDA slumped over 19% to $87.015 million from $108.686 million in the year-ago period.

“Despite the challenging market, we have generated strong cash flows through the execution of our proven operating model, favorably positioning THOR to seize upon growth opportunities in both North America and Europe,” explained Bob Martin, President and Chief Executive Officer.

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North American Towable RV net sales for the second quarter increased 13.3%, while North American Motorized RV net sales decreased 21.8% on a year-over-year basis.

European RV net sales decreased 21.7% for the second quarter of fiscal 2025 compared to the prior-year period driven by a 27.8% decrease in unit shipments offset in part by a 6.1% increase in the overall net price per unit. 

“Despite the challenging market and macroeconomic uncertainties, we remain focused on enhancing the fundamentals of our business and executing on our strategic plan as we progress through the second half of our fiscal year," said Colleen Zuhl, Senior Vice President and Chief Financial Officer.

The company exited the quarter with cash and equivalents worth $373.819 million, with net inventories worth $1.379 billion. Long-term debt (net) at the end of the quarter contracted to $1.003 billion from $1.101 billion at July 31, 2024.

Outlook: Thor Industries narrowed and revised FY25 financial guidance. The company sees consolidated net sales of $9 billion – $9.5 billion vs. $9.418 billion estimate (prior view: $9 billion – $9.8 billion). Projects diluted earnings per share of $3.30 – $4.00 vs. $4.38 estimate (prior view: $4.00 – $5.00).

Price Action: THO shares are trading lower by 3.92% to $91.50 premarket at last check Wednesday.

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