THOR Industries (NYSE:THO) Surprises With Q2 Sales But Full-Year Sales Guidance Misses Expectations Significantly

RV manufacturer Thor Industries (NYSE:THO) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales were flat year on year at $2.52 billion. On the other hand, the company’s full-year revenue guidance of $9.25 billion at the midpoint came in 3.9% below analysts’ estimates. Its GAAP profit of $2.36 per share was 91.5% above analysts’ consensus estimates.

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“We are very pleased with the results that our teams delivered amidst a highly volatile macroeconomic backdrop. Our performance is a testament to their hard work and dedication that has helped us navigate a challenging environment. 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. As we continue to execute our strategic plan, we remain focused on improving our operational efficiency, gaining market share and driving long-term success,” stated Bob Martin, President and Chief Executive Officer of THOR Industries.

Company Overview

Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, THOR Industries grew its sales at a sluggish 3.2% compounded annual growth rate. This was below our standard for the industrials sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. THOR Industries’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 7.2% annually.

This quarter, THOR Industries’s $2.52 billion of revenue was flat year on year but beat Wall Street’s estimates by 8.8%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection suggests its newer products and services will fuel better top-line performance, it is still below the sector average.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

THOR Industries was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.4% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Looking at the trend in its profitability, THOR Industries’s operating margin decreased by 3.9 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. THOR Industries’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

This quarter, THOR Industries generated an operating margin profit margin of 5.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

THOR Industries’s weak 3.8% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For THOR Industries, its two-year annual EPS declines of 16.5% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q2, THOR Industries reported EPS of $2.36, up from $1.68 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects THOR Industries’s full-year EPS of $4.85 to shrink by 12.1%.

Key Takeaways from THOR Industries’s Q2 Results

It was good to see THOR Industries beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its full-year revenue guidance missed and its full-year EPS guidance fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock traded up 2.8% to $105.20 immediately following the results.

Is THOR Industries an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.