THOR Q1 Earnings Surpass Expectations, Revenues Rise Y/Y

THOR Industries, Inc. THO reported earnings of 41 cents per share for the first quarter of fiscal 2026 (ended Oct. 31), in contrast to the Zacks Consensus Estimate of a loss of 11 cents. The company reported earnings of 26 cents per share in the corresponding quarter of fiscal 2025.

THOR registered revenues of $2.39 billion for the fiscal first quarter, beating the Zacks Consensus Estimate of $2.12 billion. The top line rose 11.5% year over year.

Thor Industries, Inc. Price, Consensus and EPS Surprise

Thor Industries, Inc. price-consensus-eps-surprise-chart | Thor Industries, Inc. Quote

Segmental Results

North American Towable RVs: Revenues from the segment remained flat at $897.1 million. The figure, however, beat our estimate of $810.6 million.

Gross profit totaled $119 million and increased 5.8% year over year as a result of reduced warranty and promotional expenses and lower overhead associated with the Heartland realignment. The pretax income totaled $46.5 million, slightly down from $46.8 million recorded in the year-ago period. The unit’s total backlog was $656 million at the quarter's end, down from $933.1 million as of Oct. 31, 2025.

North American Motorized RVs: Revenues from the segment totaled $661.1 million, which grew 30.9% year over year due to an increase in unit shipments. The figure also surpassed our estimate of $520.3 million.

Gross profit totaled $71.6 million, up 67.6% year over year due to volume leverage and lower warranty costs. Pretax profit came in at $33.15 million, up 265% from the year-ago period. The segment’s backlog was $1.28 billion, up from $963.1 million as of Oct. 31, 2025.

European RVs: Revenues from the segment came in at $655.5 million, up 8.4% from the year-ago period due to an increase in unit shipments. The figure also beat our estimate of $617.1 million.

Gross profit of $77.8 million fell 16% year over year. The segment reported a pretax loss of $26.6 million, lower than the year-ago pretax income of $1.18 million due to a greater share of lower-margin special-edition motorcaravans along with higher promotional spending and warranty expenses. The backlog of the segment was $1.93 billion, which declined from $2.04 billion recorded as of Oct. 31, 2025.

Financials

As of Oct. 31, 2025, THOR had cash and cash equivalents of $509.9 million and long-term debt of $913.1 million.

The company reported an operating cash outflow of $44.9 million against an operating cash inflow $30.7 million reported in the corresponding quarter of 2025.

THOR Reaffirms Fiscal 2026 Guidance

THOR expects its fiscal 2026 consolidated net sales to be in the range of $9-$9.5 billion compared with $9.6 billion in fiscal 2025. EPS is expected to be in the range of $3.75-$4.25 compared with $4.84 in fiscal 2025.

THO Zacks Rank & Key Picks

THOR has a Zacks Rank #5 (Strong Sell) at present.

Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 21 cents and 38 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 12 cents and 22 cents, respectively, in the past 60 days. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research