American recreational vehicles (RV) manufacturer Thor Industries, Inc. (NYSE:THO) shares traded higher on Wednesday after the company reported strong fourth-quarter financial results.
Thor Industries clocked fourth-quarter earnings per share of $2.36, beating the analyst consensus estimate of $1.27. Quarterly sales of $2.523 billion (-0.4% year over year) outpaced the Street view of $2.333 billion.
Thor Industries said that the North American Towable and North American Motorized segments saw market share inflect in the period as strategic initiatives executed throughout the fiscal year continued to gain traction.
North American Towable RVs
The North American Towable RV segment experienced a 4.6% decrease in net sales, totaling $888.7 million for the quarter. Unit shipments were down 10.1%.
Despite the decline in sales and shipments, the segment's gross profit margin improved to 13.3%, a 70 basis point increase. The backlog for this segment as of July 31, 2025, was $525 million.
North American Motorized RVs
The North American Motorized RV segment saw a 7.8% increase in net sales to $557.4 million, driven by a 15.9% increase in unit shipments.
The gross profit margin for the segment declined by 150 basis points to 11.3%, primarily due to a prior-year LIFO adjustment and increased promotional activities. The backlog for this segment was $1 billion, an increase of 29.3%.
European RVs
The European RV segment reported a 2.2% decrease in net sales for the quarter, reaching $923.1 million.
Unit shipments in this segment were down 14.1%. The gross profit margin percentage decreased by 310 basis points to 15.6%.
The segment's backlog as of July 31, 2025, was $1.5 billion, a 21.8% decrease.
"Our annual Open House event has just kicked off, giving us an opportunity to connect with our customers and showcase the exciting new products we have to offer," said CEO Bob Martin.
"Having been on the road extensively the last three months meeting with many of our independent dealers, I am more confident than ever in the strength of the relationships we have developed," the CEO added.
Gross profit in the quarter under review slumped 7.6% year over year to $370.88 million, while gross margin fell 110 basis points to 14.7%. Quarterly adjusted EBITDA fell 4.1% to $209.506 million.
The company generated an operating cash flow of $258.67 million for the fourth quarter and exited the quarter with cash and equivalents worth $586.596 million.
Outlook
Thor Industries guided for fiscal 2026 GAAP EPS of $3.75–$4.25, compared to the $3.77 consensus. It projects sales of $9.0 billion–$9.5 billion, bracketing the $9.383 billion analyst estimate.
The firm said it would know much more about what fiscal 2026 would bring after its Open House that week and, more importantly, the winter shows culminating in Tampa in January, but added it was optimistic about what it was seeing so far and looked forward to meeting investors on the road this fall.
THO Price Action: Thor Industries shares were up 5.06% at $107.42 at the time of publication on Wednesday. The stock is trading within its 52-week range of $63.15 to $118.85, according to Benzinga Pro data.
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