Story Stocks^®

Thor Industries (THO) is trading nicely higher after reporting its Q4 (Jul) results this morning. The RV manufacturer delivered a huge EPS beat, its largest in 9 quarters, while revenue declined 0.4% to $2.52 bln, a much more modest decline than the 8% analysts had been expecting.

• North American Towable sales declined 4.6%, primarily on lower wholesale shipments, but gross margin improved 70 bps on cost savings.
• Europe sales slipped 2.2% on a 14.1% unit decline, with management expecting a relatively flat FY26 sell-through environment.
• Bright spot: North American Motorized RVs outperformed the market for a second straight quarter, with sales up 7.8%.
• Affordability remains a key challenge, though THO is working to mitigate cost pressures; consumer sentiment remains mixed.
• Dealers positioned for a strong spring, but weather and tariffs dampened early demand; inventory now viewed as appropriate in both NA and Europe.
• Retail trends strengthened in peak months, though management is cautious given labor market softness.
• FY26 guidance: EPS of $3.75-4.25 and revenue of $9.0-9.5 bln, both below consensus, as THO plans for a challenging retail backdrop similar to FY25.

Briefing.com Analyst Insight

Thor Industries posted another better-than-expected quarter, highlighting the strength of its cost discipline and flexible operating model in a challenging retail backdrop. Affordability issues and uneven consumer demand remain major obstacles, but THO has demonstrated it can protect margins and capture share even as overall RV demand softens. While FY26 guidance is light, management's conservative approach looks prudent given the continued uncertainty. With two straight quarters of execution above expectations, THO is well-positioned to accelerate when retail demand steadies.