Thor Industries Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 3 December 2025: press release. Guidance figures: 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 11.5% to $2.39 billion: Net sales were $2,389,123 thousand against $2,142,784 thousand a year earlier. Gross profit was $320,974 thousand, up 14.0%, and gross margin was 13.4% against 13.1%. Source
• Adjusted EBITDA up 21.5%: EBITDA was $107,540 thousand, up 31.6%. Adjusted EBITDA was $131,005 thousand against $107,782 thousand, up 21.5%. Source
• Motorized sales up 30.9%: Motorized net sales were $661,096 thousand, up 30.9%, on 4,950 units, up 32.3%. Income before income taxes was $33,149 thousand against $9,081 thousand a year earlier. Source
• European pre-tax result turned to loss: European income before income taxes was a loss of $26,638 thousand, against income of $1,177 thousand a year earlier. Source
• European margin down 340 basis points: European gross margin was 11.9% against 15.3%. A higher mix of lower-margin special-edition motorcaravans, more promotion and higher warranty costs reduced the margin. Source
• Towable backlog down 29.7%: Towable order backlog was $656,002 thousand at October 31, 2025, against $933,051 thousand a year earlier. Source
• Operating cash flow negative in quarter: Cash flows used in operations were $44,867 thousand, against cash provided of $30,740 thousand a year earlier. Source
• Repurchases ready if shares fall: The CFO said the company would not hesitate to queue up stock repurchases if the stock sells off on broader consumer concerns. The release gives no repurchase amount for the quarter. Source
• EHG restructuring costs in quarter: EHG results included restructuring costs, which the company expects to have a long-term benefit to EHG operating results. Source

“The quarter finished stronger than we expected, and we are excited about the impact of the actions we are taking to improve the strength of our business”

Bob Martin, President and Chief Executive Officer of THOR Industries

Guidance

What changed from last quarter

• New: RV Partfinder platform announced at the 2025 Open House. The prior release listed creating a marketplace for RV parts among its initiatives. Source

Quarter results and growth drivers

• Net sales rose 11.5% to $2.39 billion: Net sales were $2,389,123 thousand against $2,142,784 thousand a year earlier. Gross profit was $320,974 thousand, up 14.0%, and gross margin was 13.4% against 13.1%. Source
• Net income positive after prior loss: Net income attributable to THOR was $21,669 thousand against a loss of $1,832 thousand. Diluted EPS was $0.41 compared with a loss of $0.03. Source
• Adjusted EBITDA up 21.5%: EBITDA was $107,540 thousand, up 31.6%. Adjusted EBITDA was $131,005 thousand against $107,782 thousand, up 21.5%. Source
• North American share gains continued: The company said North American market share improved for the second consecutive fiscal quarter as retail outperformed expectations. Source

Segment results and regions

• Towable sales flat on fewer units: Towable net sales were $897,090 thousand, down 0.2%. Unit shipments fell 14.0% to 25,807 as channel inventory was managed. Income before income taxes was $46,471 thousand against $46,821 thousand. Source
• Motorized sales up 30.9%: Motorized net sales were $661,096 thousand, up 30.9%, on 4,950 units, up 32.3%. Income before income taxes was $33,149 thousand against $9,081 thousand a year earlier. Source
• European sales up on higher price: European net sales were $655,479 thousand, up 8.4%. Unit shipments rose 1.0% to 8,723 and net price per unit rose 7.4%, which benefited from foreign exchange rates. Source
• European pre-tax result turned to loss: European income before income taxes was a loss of $26,638 thousand, against income of $1,177 thousand a year earlier. Source

“We are vigilantly monitoring the health of our business so that we can effectively manage risk and protect profitability in light of the fact that numerous indicators suggest that the consumer may be retrenching”

Colleen Zuhl, Senior Vice President and Chief Financial Officer

Products, dealers and customers

• Open House products drew dealer feedback: Martin said dealers gave feedback on new products shown at the September 2025 Open House, naming the Keystone Montana and Heartland Bighorn. Source
• Motorized targets high-demand price points: Motorized growth was attributed to premium segment products and to targeting retail price points where consumer demand is concentrated, which the company expects to lead to share gains. Source
• Motorized dealer load-in of new products: Motorized dealer inventory was at an appropriate level heading into winter despite significant load-in of new products. Source

Costs, margins and pricing

• Towable margin up 80 basis points: Towable gross margin was 13.3% against 12.5%, reflecting lower warranty costs, lower Heartland realignment overhead and reduced promotions, partly offset by higher material costs. Source
• Motorized margin up 230 basis points: Motorized gross margin was 10.8% against 8.5%. Volume leverage, less promotion and lower warranty costs more than offset higher material costs. Source
• European margin down 340 basis points: European gross margin was 11.9% against 15.3%. A higher mix of lower-margin special-edition motorcaravans, more promotion and higher warranty costs reduced the margin. Source
• SG&A ratio fell to 10.6%: Selling, general and administrative expenses were $254,030 thousand, or 10.6% of net sales, against $240,197 thousand, or 11.2%. Source
• Interest and amortization costs were lower: Amortization of intangible assets was $27,928 thousand against $29,822 thousand. Net interest expense was $9,017 thousand against $15,228 thousand. Source

“Year-to-date retail trends are running at the high end of our fiscal plan despite the fact that we are contending with unprecedented consumer uncertainty”

Bob Martin, President and Chief Executive Officer of THOR Industries

Demand and the order book

• Towable backlog down 29.7%: Towable order backlog was $656,002 thousand at October 31, 2025, against $933,051 thousand a year earlier. Source
• Motorized backlog up, European backlog down: Motorized order backlog was $1,276,523 thousand, up 32.5%. European order backlog was $1,930,463 thousand, down 5.5%. Source
• Customers cautious on consumer near term: Martin said customers at the RVDA Expo in November had a near-term cautious tone about the consumer, while he is more confident about the long-term health of the industry. Source
• European market price-aggressive: Woelfer said the European quarter was affected by the typical August shutdown and a price-aggressive marketplace. Source
• Positioned if market improves: The company said it is positioned to benefit if the market improves, given its dealer inventory position. Source

Capital, cash and balance sheet

• Operating cash flow negative in quarter: Cash flows used in operations were $44,867 thousand, against cash provided of $30,740 thousand a year earlier. Source
• Receivables and debt lower, inventory higher: At October 31, 2025, receivables were $655,642 thousand against $707,363 thousand at July 31, 2025. Long-term debt was $913,129 thousand against $919,612 thousand, and inventories were $1,464,085 thousand against $1,351,796 thousand. Source
• Cash balance lower, equity higher: Cash and equivalents were $509,878 thousand against $586,596 thousand at July 31, 2025. Stockholders’ equity was $4,299,273 thousand against $4,289,552 thousand. Source
• Repurchases ready if shares fall: The CFO said the company would not hesitate to queue up stock repurchases if the stock sells off on broader consumer concerns. The release gives no repurchase amount for the quarter. Source

Strategy, restructuring and data

• EHG restructuring costs in quarter: EHG results included restructuring costs, which the company expects to have a long-term benefit to EHG operating results. Source
• Data initiatives help dealers respond: Woelfer said key data initiatives continue to empower operating companies to respond quickly to the market and meet consumer demand. Source
• Company initiatives expected to gain traction: Woolf said the company is increasingly confident that its company-specific initiatives will gain traction through the fiscal year. Source
• Strategic initiative costs added back: The EBITDA reconciliation adds back $15,050 thousand of strategic initiatives, against $15,459 thousand a year earlier. Source
• Guidance excludes restructuring effects: Full-year guidance does not include a meaningful financial impact from the Heartland realignment, the Keystone model refresh or other restructuring initiatives. Source

Coming up, as management said on 3 December 2025

• Guidance update with second-quarter results: The company will update its full-year guidance, if appropriate, when it reports second-quarter results in March. Source
• Offseason sell-in held back: Woolf said the company will not get overly excited about offseason sell-in given the uncertain environment. Source
• Motorized retail expected to strengthen: The company expects Motorized load-in to precede a stronger relative retail performance in the rest of fiscal 2026. Source
• European cadence expected to repeat: The company expects EHG profitability to follow a cadence for the rest of the year similar to last year. Source
• Show season tied to macro stability: Martin expects the show season to be strong if the macro environment stabilizes. Source

Figures management reported

Risks management discussed

• External: Management said the government shutdown and tariff headlines weighed on consumer confidence. Source
• Demand: Woolf said the range of outcomes for the consumer is wide, as shown by consumer sentiment results. Source
• Operational: Higher material costs in Towable and Motorized were a cost pressure that other margin factors offset. Source

Earlier plans management reported on

• On track: Woolf said the company continues to see the rest of the year playing out as originally envisioned. Source
• On track: Woelfer said EHG profitability was aligned to plan for the quarter on an internal expectation basis. Source

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.