THOR Industries — Fiscal 2026 Fourth Quarter Earnings Summary

Financial Performance

• Net sales for the quarter ended July 31, 2026, were $2.31 billion, a decrease of 8.4% from $2.52 billion in the prior-year period; full-year net sales were $9.61 billion, an increase of 0.3% from $9.58 billion.
• Gross profit for the quarter was $285.6 million, down 23.0% from $370.9 million, with gross margin declining to 12.4% from 14.7% (a 230 basis point decrease); full-year gross profit was $1.21 billion, down 9.5%, with margin at 12.6% versus 14.0% (140 basis points lower).
• Net income attributable to THOR was $40.8 million for the quarter, a 67.5% decrease from $125.8 million; full-year net income was $177.5 million, down 31.3% from $258.6 million.
• Diluted earnings per share were $0.78 for the quarter, down 66.9% from $2.36; full-year diluted EPS was $3.38, down 30.2% from $4.84.
• EBITDA for the quarter was $130.0 million, down 42.2% from $224.8 million; full-year EBITDA was $541.9 million, down 12.0% from $615.8 million.
• Adjusted EBITDA for the quarter was $131.7 million, down 37.1% from $209.5 million; full-year Adjusted EBITDA was $544.4 million, down 17.4% from $659.1 million.
• Total debt decreased by $59.7 million during the fiscal year, with long-term debt, net standing at $865.1 million as of July 31, 2026, compared to $919.6 million in the prior year.
• Cash and cash equivalents were $482.0 million as of July 31, 2026, down from $586.6 million in the prior year.

Guidance and Future Outlook

• Management expects a relatively flat retail environment in fiscal 2027 compared to fiscal 2026, citing continued macroeconomic headwinds.
• Fiscal 2027 specific guidance will be provided later in the fall following insights from industry events in September (Hershey, PA and Elkhart, IN Open House).
• Cumulative impact of strategic initiatives and restructuring activities is expected to drive costs out of the business and improve the earnings profile by more than $100 million annually once fully implemented.
• Management anticipates the RV market will eventually inflect, with confidence in upside to financial performance as volumes and mix recover.

Business Segments and Product Lines

• North American Towable RVs: Net sales declined 22.7% to $687.3 million in the quarter and 16.1% to $3.18 billion for the year; unit shipments fell 19.7% in the quarter and 20.7% for the year; gross margin dropped 280 basis points to 10.5% in the quarter; order backlog increased 74.6% to $916.6 million.
• North American Motorized RVs: Net sales decreased 10.4% to $499.3 million in the quarter but increased 12.8% to $2.46 billion for the year; unit shipments fell 13.1% in the quarter but rose 12.4% for the year; gross margin declined 600 basis points to 5.3% in the quarter; order backlog decreased 27.5% to $728.2 million.
• European RVs: Net sales increased 5.0% to $969.2 million in the quarter and 9.0% to $3.30 billion for the year; unit shipments rose 3.9% in the quarter and 2.7% for the year; gross margin declined 30 basis points to 15.3% in the quarter; order backlog increased 8.4% to $1.65 billion.
• The owned supplier group achieved further year-over-year content-per-unit (CPU) growth.
• North American Motorized and European segments gained market share for the six months ended June 30, 2026.

Market and Competitive Landscape

• The RV industry is in an extended down cycle driven by stubborn interest rates, elevated fuel costs, and inflationary pressures straining household budgets.
• Independent dealer inventory levels declined 11.5% as of July 31, 2026, compared to the prior year, with North American Towable dealer inventory down 16.0%.
• North American Towable independent dealer inventory turns improved compared to the prior quarter.
• The European segment provided geographic diversification with resilient results relative to the pressured North American market.

Risks and Challenges

• Significant pressure on gross margins due to heightened affordability concerns, increased material costs, unfavorable product mix, and increased promotional activity.
• Macroeconomic headwinds including inflation, interest rates, and fuel costs continue to impact retail demand.
• The company is executing restructuring actions and evolving its North American RV operating model, accepting near-term margin pressure for long-term health.
• Risks include potential impacts from raw material price fluctuations, supply constraints, currency exchange rates, and the financial health of independent dealers.

Management Commentary and Tone

• CEO Bob Martin acknowledged fiscal 2026 was more challenging than anticipated but noted net sales exceeded the high end of guidance, citing geographic diversity and sustained appeal of the RV lifestyle.
• COO Todd Woelfer emphasized disciplined operations, noting the channel is well-positioned even under a conservative outlook and that structural actions are underway to lower the cost base durably.
• CFO Colleen Zuhl highlighted the strength of the balance sheet and healthy leverage ratio, which enabled debt reduction and share repurchases without compromising financial stability.
• Management expressed confidence in the company's ability to operate successfully in any industry backdrop and build a permanently stronger THOR through the downturn.

Other Key Points

• The company repurchased $115.1 million of shares during fiscal 2026, including $34.3 million in the fourth quarter.
• Strategic initiatives and restructuring costs incurred in fiscal 2025 and 2026 are intended to position the company advantageously for fiscal 2027.
• European segment net sales increased 3.1% on a constant currency basis for the full fiscal year.
• The company has announced leadership changes as part of the strategic evolution of its North American RV operating model.
• Supplemental Q&A documents and PowerPoint presentations are available via the investor relations website.