THOR Industries announced financial results for its second fiscal quarter ended Jan. 31.
“Our second quarter results were in line with our expectations going into the quarter, and we experienced mild, but encouraging, year-over-year improvement at recent retail shows. As the challenging economic environment persists, our actions remain focused on what we can control: the products that we offer and the relationships that we foster with dealers and retail customers. Our strategic approach continues to emphasize a strong margin profile while focusing on alignment of our production to match the current retail environment. This approach will help us avoid growth of independent dealer inventory levels of our products until market conditions improve. Holding true to our strategy places our operating companies in an advantageous position to outperform the market when retail demand inevitably picks up. Despite the challenging market, we have generated strong cash flows through the execution of our proven operating model, favorably positioning THOR to seize upon growth opportunities in both North America and Europe,” said Bob Martin, President and Chief Executive Officer of THOR Industries.
Second Quarter Financial Results
Consolidated net sales were $2.02 billion in the second quarter of fiscal 2025, compared to $2.21 billion for the second quarter of fiscal 2024, a decrease of 8.6%.
Consolidated gross profit margin for the second quarter of fiscal 2025 was 12.1%, a decrease of 20 basis points when compared to the second quarter of fiscal 2024.
Net income (loss) attributable to THOR Industries, Inc. and diluted earnings (loss) per share for the second quarter of fiscal 2025 were $(0.6) million and $(0.01), respectively, compared to $7.2 million and $0.13, respectively, for the second quarter of fiscal 2024.
EBITDA and Adjusted EBITDA for the second quarter of fiscal 2025 were $76,344 and $87,015, respectively, compared to $103,242 and $108,686, respectively, for the second quarter of fiscal 2024. See the reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures included at the end of this release.
THOR’s consolidated results were primarily driven by the results of its individual reportable segments as noted below.
Segment Results
North American towable RV net sales for the second quarter of fiscal 2025 increased 13.3% compared to the prior-year period. This increase in net sales was the result of a 27.6% increase in unit shipments, partially offset by a 14.3% decrease in the overall net price per unit, as our product mix in the current-year period shifted more toward our lower-cost travel trailers.
North American towable RV gross profit margin was 11.1% for the second quarter of fiscal 2025 compared to 7.4% for the prior-year period. This 370 basis point improvement was due to the increase in net sales and the combined net favorable impacts of reduced sales discounting and our ongoing cost-saving initiatives.
North American motorized RV net sales decreased 21.8% for the second quarter of fiscal 2025 compared to the prior-year period. The decrease resulted from a 20.5% reduction in unit shipments, primarily due to a softening in dealer and consumer demand in the current-year period, along with a 1.3% decrease in net price per unit primarily due to our Class A product mix shifting toward a higher concentration of our more moderately priced Class A units, along with higher discounting levels in comparison to the prior-year period.
North American motorized RV gross profit margin was 7.8% for the second quarter of fiscal 2025 compared to 10.6% in the second quarter of fiscal 2024. The decrease in the gross profit margin percentage for the current period was driven mainly by the combined impact of the decrease in net sales along with the increase in sales discounting.
See THOR’s full financial report and management commentary here.
