THOR Industries announced financial results for its fiscal 2025 third quarter, ended April 30.
Key Takeaways From 2025 Third Quarter:
- Third quarter performance yielded strong results and exceeded expectations
- Delivered resilient margins while contending with shifting market and macroeconomic conditions
- Fiscal year-to-date generation of cash from operations surpassed the prior-year period as management continued to execute on our proven operating model
- Strategic organizational restructuring announced during the quarter continues to align the Company with current market conditions and positions THOR favorably to achieve additional operating efficiencies
- The company reaffirmed its revised full-year fiscal 2025 financial guidance
- Consolidated net sales in the range of $9 billion to $9.5 billion
- Consolidated gross profit margin in the range of 13.8% to 14.5%
- Diluted earnings per share in the range of $3.30 to $4.00
“Our third quarter results exceeded our expectations on both the top and bottom lines. The successful execution of key strategic initiatives, in particular placing further emphasis on driving down our cost profile, led to improved margins in an environment where we saw modest year-over-year top-line improvement. THOR’s operating model, particularly within North America, is designed to ramp upward and downward in an incredibly efficient manner, and our performance in the fiscal third quarter exhibited the strength and flexibility of this operating model. We are incredibly proud of our hard-working team members as they continue to execute to plan in the face of numerous challenging market conditions as we navigate through this prolonged industry downturn together. Our third quarter performance exemplifies what makes THOR the market leader. History has proven THOR’s ability to weather difficult macroeconomic circumstances and to come back stronger when market conditions improve. While the current level of uncertainty is unprecedented, and we believe the next two fiscal quarters will be challenging for the RV industry as a whole, we are very pleased that our efforts are starting to move the needle,” said Bob Martin, president and CEO of THOR Industries.
Third Quarter Financial Results
- Consolidated net sales were $2.89 billion in the third quarter of fiscal 2025, compared to $2.80 billion for the third quarter of fiscal 2024, an increase of 3.3%.
- Consolidated gross profit margin for the third quarter of fiscal 2025 was 15.3%, an increase of 20 basis points over the third quarter of fiscal 2024.
- Net income attributable to THOR Industries, Inc. and diluted earnings per share for the third quarter of fiscal 2025 were $135.2 million and $2.53, respectively, compared to $114.5 million and $2.13, respectively, for the third quarter of fiscal 2024.
- EBITDA and Adjusted EBITDA for the third quarter of fiscal 2025 were $233.0 million and $254.8 million, respectively, compared to $232.3 million and $236.1 million, respectively, for the third 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:
“While our fiscal third quarter results exceeded expectations, our overall fiscal year is unfolding in a manner that is very consistent with our original projections. We foresaw and foretold a very challenging environment in the first half of our fiscal year and, during that time, we prudently managed our operations to align with the expected difficult market conditions. Key strategic initiatives have driven important recent wins for our brands, and we are confident that we are well-positioned to return to share gains over the longer term. Our financial guidance assumed a stronger second half of our fiscal year, and our fiscal third quarter performance reflects the value of our strategies in the currently difficult market. THOR’s focus on aligning production with retail sales and working with our valued independent dealer partners to ensure rational inventory levels for a suppressed retail marketplace positioned us well for the moment when retail surged, even moderately. Our fiscal third quarter results benefited from the continued execution of our strategies, and the management and production teams at our operating companies performed incredibly well, driving strong performance in our third quarter. In the fiscal third quarter, our consolidated gross margin improved to 15.3% compared 15.1% in the prior-year period. Our North American Towable segment, in particular, generated meaningful improvement on a year-over-year basis, posting a 200 basis point improvement in gross profit margin over the third quarter of fiscal 2024. As we anticipated and messaged at the beginning of our fiscal year, our North American Motorized and European segments have both seen year-over-year declines in gross margin but still achieved resilient results considering the challenging environments facing those segments. While our consolidated margin this quarter was unfavorably impacted by actions we took to deepen our partnerships with key dealers, strategically, deepening these key relationships is vital to our long-term market position and these decisions favorably position THOR for the future as we look ahead,” said Todd Woelfer, senior vice president and chief operating officer.
“As we discussed at the end of our fiscal second quarter, significant restructuring steps at THOR were forthcoming. The strategic restructuring of Heartland to operate under Jayco’s outstanding management team creates significant opportunities for both brands going forward. This realignment, along with other key initiatives, will further optimize our enterprise structure and drive meaningful savings as the Company works to reduce its cost footprint. Both prior to and throughout the fiscal year thus far, we have transparently communicated our strategies and have remained vigilantly focused on executing those strategies despite the noise in both the macro and micro environments. Our teams’ dedication to the execution of those plans is exemplified in our successful third-quarter results,” said Woelfer.
“As a result of our strong quarter, on April 30, 2025, we had liquidity of approximately $1.49 billion, including approximately $508.3 million of cash on hand and approximately $985.0 million available under our asset-based revolving credit facility. In addition to the solid foundation provided by our total liquidity position and overall strong balance sheet, during the third quarter, we generated cash from operations of approximately $257.7 million, bringing our fiscal year-to-date total to $319.2 million. Despite our lower year-to-date net income, through the third fiscal quarter of 2025 we have improved our cash flow from operating activities by over $100 million on a year-over-year basis by executing on our proven operating model and significantly reducing our working capital,” noted Colleen Zuhl, senior vice president and chief financial officer.
“True to our historical commitment of taking a measured and conservative approach to cash management and capital allocation, especially during challenging economic periods, through the third quarter of fiscal 2025, we have made selective capital expenditures of approximately $85.1 million with a priority on time-sensitive investments in our facilities and machinery. Through the first three quarters of fiscal 2025, we have also reduced our total indebtedness by approximately $139.2 million and returned capital to our shareholders primarily through the payment of $79.8 million in quarterly dividends. Subsequent to the end of our third fiscal quarter, we further reduced our indebtedness with a $55.0 million payment against the principal balance of our USD term loan. While we were unable to repurchase shares during our fiscal third quarter due to trading restrictions, THOR remains well positioned to take advantage of the currently suppressed securities market with our strong cash position. Management’s view remains that there are few other capital allocation options that offer such significant return to our shareholders,” added Zuhl.
