THOR Industries announced financial results for its fiscal 2025 first quarter, ended Oct. 31.
Key takeaways:
- First quarter performance continued to be impacted by the current macro environment, in line with expectations
- Margins held up well relative to the challenging market
- Remained focused on our strategic commitment to long-term investments to create a sustainable competitive advantage and enhanced margin profile
- Restructured leadership team to allow for greater focus in North America from CEO Bob Martin
- Strategic, nonrecurring costs incurred during the quarter unfavorably impacted first quarter results, but actions are expected to result in future annual savings of over $10 million
- Full-year fiscal 2025 financial guidance held constant as originally provided
- Consolidated net sales in the range of $9 billion to $9.8 billion
- Consolidated gross profit margin in the range of 14.7% to 15.2%
- Diluted earnings per share in the range of $4 to $5
“As we forecasted, our performance through the first quarter of our fiscal year 2025 continued to be impacted by the soft retail and wholesale environment. Our strategic approach continues to focus on aligning our production to match the current retail environment and avoiding growth of independent dealer inventory levels of our products until market conditions indicate otherwise. By remaining disciplined and aligned with current market conditions, our companies remain incredibly well-positioned to outperform the market when retail demand inevitably picks up,” said Bob Martin, president and CEO of THOR Industries.
“Our focus is to control what we can control in the current challenging market. Our teams have performed well as evidenced by our gross margin performance, which remains strong relative to current market conditions. This doesn’t happen by accident. Our industry has a history that includes OEMs being too aggressive during market conditions similar to those which we are currently experiencing. A short-term, top-line benefit invariably created much greater long-term hardship. We have been very intentional and disciplined in avoiding that temptation as we position our operating subsidiaries and independent dealers to outperform upon the market’s return.
“What we can control now is product. The reception by our independent dealer partners of our new product lineup at our annual Open House event in Elkhart, Indiana in late September 2024 and by our independent dealers and consumers at the Caravan Salon trade fair in Düsseldorf, Germany in late August/early September 2024 was incredibly strong and gives us reason to remain optimistic about what lies ahead. Barring further future macroeconomic headwinds, it is our expectation that retail activity will begin to trend positively in the latter half of our fiscal 2025, particularly in North America, where we anticipate the return of a stronger retail market,” added Martin.
First Quarter Financial Results
- Consolidated net sales were $2.14 billion in the first quarter of fiscal 2025, compared to $2.50 billion for the first quarter of fiscal 2024, a decrease of 14.3%.
- Consolidated gross profit margin for the first quarter of fiscal 2025 was 13.1%, a decrease of 120 basis points when compared to the first quarter of fiscal 2024.
- Net income (loss) attributable to THOR Industries, Inc. and diluted earnings (loss) per share for the first quarter of fiscal 2025 were $(1.8) million and $(0.03), respectively, compared to $53.6 million and $0.99, respectively, for the first quarter of fiscal 2024.
- EBITDA and Adjusted EBITDA for the first quarter of fiscal 2025 were $81,733 and $107,782, respectively, compared to $160,057 and $166,918, respectively, for the first quarter of fiscal 2024. See the reconciliation of non-GAAP measures to most directly comparable GAAP financial measures included in this release.
THOR’s consolidated results were primarily driven by the results of its individual reportable segments as noted below:
“The first quarter of our fiscal 2025 was, as we anticipated, a tough quarter. We held margins well given the challenging sales environment, particularly within our North American Towable segment where we held flat despite a nearly 5% decrease in net sales for the segment. As we talked about fiscal year 2025 at the conclusion of fiscal year 2024, we foretold the expectations of a challenging first half of the fiscal year followed by a stronger second half. We also forecasted, by segment, that we expected margins to solidify in our North American Towable segment but decline in both our North American Motorized and European segments. Still, given the decline in net sales across our segments we are pleased with our relative margin performance. The bottom line for this quarter is that we performed as we expected through the financial period. We remained focused on what we could control in this market as we continued to position the Company to excel when a stronger retail market inevitably returns,” said Todd Woelfer, senior vice president.
“Our current view of fiscal year 2025 remains consistent with our initial financial forecast and guidance. In September, the RVIA released its expectations that for calendar year 2025 it expects wholesale unit shipment totals to exceed 345,000 units. We continue to be a bit more conservative with our view but do see potential upside in the market if consumer confidence elevates during calendar 2025. The signs of the return of the normalized market are beginning to show in the form of an uptick in dealer optimism. We share our dealers’ reasons to have confidence in the future of our industry. In the interim, we will hold steadfast to our strategy of prudence in the face of a challenging market as we focus on controlling what we can control, all while positioning THOR to outperform upon the market’s return,” concluded Martin.
