A month has gone by since the last earnings report for Thor Industries (THO). Shares have added about 3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Thor Industries due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Thor Industries, Inc. before we dive into how investors and analysts have reacted as of late.
THOR Q4 Earnings Beat Expectation, Revenues Decrease Y/Y
THOR reported earnings of $2.31 per share for the fourth quarter of fiscal 2025 (ended July 31), beating the Zacks Consensus Estimate of earnings of $1.16. The company reported earnings of $1.68 per share in the corresponding quarter of fiscal 2024.
THOR registered revenues of $2.52 billion for the fiscal fourth quarter, beating the Zacks Consensus Estimate of $2.31 billion. The top line fell 0.4% year over year.
Segmental Results
North American Towable RVs: Revenues from the segment came in at $888.7 million, down 4.6% year over year due to a decline in wholesale shipments. The figure, however, beat our estimate of $825.6 million.
Gross profit totaled $118.6 million and increased 1% year over year as a result of reduced warranty and promotional expenses and cost reduction initiatives. The pretax income totaled $74.5 million, up from $50.9 million recorded in the year-ago period, primarily fueled by an improvement in gross profits. The unit’s total backlog was $525 million at the quarter's end, down from $552.4 million as of July 31, 2024.
North American Motorized RVs: Revenues from the segment totaled $557.4 million, which grew 7.8% year over year due to an increase in unit shipments. The figure also surpassed our estimate of $504 million.
Gross profit totaled $62.9 million, down 4.7% year over year due to aggressive promotional activity. Pretax profit came in at $39 million, up 31.1% from the year-ago period. The segment’s backlog was $1,004 million, up from $776.9 million as of July 31, 2024.
European RVs: Revenues from the segment came in at $923 million, down 2.2% from the year-ago period due to a decline in unit shipments. The figure, however, beatour estimate of $856.3 million.
Gross profit of $143.9 million fell 18.3% year over year. The segment reported a pretax income of $51.9 million, lower than the year-ago pretax income of $87.1 million. The backlog of the segment was $1.52 billion, which declined from $1.95 billion recorded as of July 31, 2024.
Financials
As of July 31, 2025, THOR had cash and cash equivalents of $586.6 million and long-term debt of $919.6 million.
The company reported an operating cash inflow of $258.7 million compared with $338 million reported in the corresponding quarter of 2024.
THOR Provides Fiscal 2026 Guidance
THOR projects its fiscal 2026 consolidated net sales in the range of $9-$9.5 billion, compared to $9.6 billion in fiscal 2025. EPS is expected to be in the range of $3.75-$4.25 compared to $4.84 in fiscal 2025.
How Have Estimates Been Moving Since Then?
Investors have witnessed a downward trend in estimates revision over the past two months.
The consensus estimate has shifted -9.43% due to these changes.
VGM Scores
Currently, Thor Industries has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Thor Industries has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Thor Industries, Inc. (THO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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