THOR Industries, Inc. announced financial results for its fiscal 2026 fourth quarter and full year ended July 31.
Fiscal 2026 Fourth Quarter
- Net sales of $2.31 billion, Net income attributable to THOR of $40.8 million and EBITDA of $130 million in the quarter
- European segment continues to provide valuable geographic diversification with resilient results relative to a pressured North American market
- Used our strong liquidity position advantageously, repurchasing an additional $34.3 million of shares during the quarter
- Independent dealer inventory turns improved compared to the prior quarter, with dealer inventory at healthy levels entering our fiscal 2027
- Adjusted EBITDA of $131.7 million in the quarter excludes, among other items, nonrecurring costs associated with strategic reorganization initiatives and the impact of gains on investments
Fiscal Year 2026
- Net sales of $9.61 billion, Net income attributable to THOR of $177.5 million and EBITDA of $541.9 million for the fiscal year
- Net sales for the European segment increased 3.1% on a constant currency basis compared to the prior year, and the segment is well positioned for the coming fiscal year following restructuring initiatives to optimize its production capacities and further improve its gross margin profile
- Prudently deployed capital during a muted retail market, reducing debt by $59.7 million and repurchasing shares of $115.1 million during the fiscal year
- Further year-over-year content-per-unit (“CPU”) growth within our owned supplier group as our strategic growth strategy for these businesses advances
“Our fiscal 2026 proved to be more challenging than we anticipated at the outset of the year due to the headwinds impacting the RV industry. The retail market never reached the inflection point many in the industry expected, as stubborn interest rates, elevated fuel costs and ever-present inflationary pressures have strained household budgets and kept retail soft throughout the critical selling season,” said Bob Martin, president and CEO. “Against this backdrop, our teams executed by delivering net sales of $9.61 billion for fiscal 2026, exceeding the high end of our guidance — evidence of both our geographic diversity and the sustained appeal of the RV lifestyle. Our European segment was a key contributor with net sales for fiscal 2026 up 3.1% compared to the prior-year period on a constant currency basis.
“Our earnings performance did not keep pace with our top-line performance. As the fiscal year progressed, heightened affordability concerns and increasing material costs resulted in significant pressure on our gross margins. We responded with restructuring actions and began evolving our North American RV operating model. We directed those initiatives towards protecting attainable price points for consumers, accepting near-term margin pressure in exchange for long-term health of the business. The strength of our brands, the health of our balance sheet and our leadership across the RV market remain firmly intact and we are using this cycle to build a permanently stronger THOR,” said Martin.
“Our fiscal fourth quarter results reflected the macroeconomic pressures of our fiscal 2026 while also demonstrating the disciplined approach we have brought to our operations,” added Todd Woelfer, senior vice president and chief operating officer. “We managed production closely against global independent dealer inventory levels, which have declined 11.5% as of July 31 compared to July 31, 2025. This leaves the product channel well positioned even under a conservative outlook and positions THOR to achieve meaningful results once the market simply stabilizes, even if it stabilizes at a depressed level. Despite the difficult market conditions, both the North American Motorized and European segments gained market share for the six months ended June 30, 2026, with the North American Motorized segment up 130 basis points compared to the prior-year period. Additionally, our owned supply companies continued to grow despite the challenged North American RV market, posting strong year-over-year CPU gains.
“Regardless of where projected industry levels settle, we are not easing off the initiatives that improve our earnings power: expanding our enterprise purchasing programs, growing our owned-supplier business and optimizing our organizational structure. These are the levers that will make THOR structurally stronger through and beyond this downturn. Our initiatives are being executed now with strong momentum and, even assuming a flat retail market against fiscal 2026 volumes, THOR can materially improve its earnings profile,” said Woelfer.
“The near-term industry backdrop has been difficult, but our capital deployment reflects continued confidence in our financial position,” said Colleen Zuhl, senior vice president and chief financial officer. “With much of our business impacted by macroeconomic headwinds, we remain focused on what we can control. During fiscal 2026, we reduced debt by $59.7 million and repurchased shares of $115.1 million, of which $34.3 million was repurchased during the fiscal 2026 fourth quarter.
“This year’s pressure has been concentrated in gross margin, and the structural actions now underway are designed to lower our cost base durably — not temporarily — and to expand margins as volumes and mix recover. The restructuring costs we have incurred in fiscal 2025 and fiscal 2026 have put us on an advantageous path going forward. We have made difficult decisions in a down market, and will continue to do so as we assess additional opportunities to strengthen our earnings profile and streamline our business in fiscal 2027. Our balance sheet strength enabled us to execute these actions without compromising financial stability. That strength and our healthy leverage ratio leave us well positioned to operate in any environment and to act on opportunities as they arise, generating value for our independent dealers, RV customers and shareholders,” concluded Zuhl.
Segment Results
North American Towable RVs
- North American Towable net sales declined in THOR’s fiscal 2026 fourth quarter compared to the prior-year period due to a 19.7% decrease in unit shipments, with fifth wheel unit shipments down 34.7%. Sales volumes remain challenged by the retail environment and cautious independent dealer ordering patterns that have led to a 16% decline in independent dealer inventory levels of towable product as of July 31 compared to July 31, 2025. The gross profit margin percentage in the fourth quarter of fiscal 2026 declined by 280 basis points compared to the prior-year period, primarily due to lower sales volumes, an unfavorable product mix, increased promotional activity and an increased material cost percentage. Income before income taxes included gains on sales of fixed assets for the three months ended July 31, 2026 and July 31, 2025 of $0.1 million and $21.4 million, respectively, and for the twelve months ended July 31, 2026 and July 31, 2025 of $36.9 million and $24.1 million, respectively.
North American Motorized RVs
- Net sales for the North American Motorized segment decreased 10.4% in the fourth quarter of fiscal 2026 compared to the prior-year period, influenced by higher promotional activity and a 13.1% decrease in unit shipments that was partially offset by a 2.7% increase in the overall net price per unit as mix within our Class C and Class B products improved. The gross profit margin percentage declined 600 basis points compared to the prior-year period due to the decline in net sales and the combined increases in the material, overhead and warranty cost percentages. Income before income taxes in the prior-year period included an $11.2 million insurance settlement benefit.
European RVs
- European RV net sales for the fourth quarter of fiscal 2026 increased 5% compared to the prior-year period, driven by the combined impact of a 3.9% increase in unit shipments and a 1.1% increase in the overall net price per unit, of which 0.1% was due to favorable changes in foreign currency exchange rates. Net sales benefited from a lower promotional environment compared to the prior-year period along with product mix continuing to shift towards higher-priced motorized products from lower-priced caravans. The gross profit margin percentage declined just 30 basis points compared to the prior-year period, reflecting the more favorable supplier dynamics in our European operations compared to North America. The slight margin decline was primarily due to a higher warranty cost percentage, partially offset by a lower overhead cost percentage. Income before income taxes included restructuring costs of $11.1 million and $25.2 million for the three and twelve months ended July 31, respectively.
