Thor Industries (THO) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net sales were $2.14B, down 14.3% year-over-year, reflecting macroeconomic headwinds and soft demand.

• Net loss was $1.8M, or $(0.03) per share, compared to net income of $53.6M in Q1 FY24.

• Strategic, nonrecurring costs of $15.5M for restructuring and facility closure impacted results but are expected to yield over $10M in annual savings.

• Leadership restructured to focus on North America; dividend increased for 15th consecutive year.

• Market share remains strong in North America and Europe.

Financial highlights

• Net sales declined 14.3% to $2.14B; gross margin was 13.1%, down from 14.3% year-over-year.

• Net loss of $1.8M versus net income of $53.6M in Q1 FY24; diluted EPS was $(0.03), down from $0.99.

• EBITDA was $81.7M, down 48.9%; Adjusted EBITDA was $107.8M, down 35.4%.

• Cash from operating activities was $30.7M, down from $59.7M in Q1 FY24.

• Quarterly dividend increased to $0.50 per share.

Outlook and guidance

• FY25 guidance reaffirmed: net sales $9.0B–$9.8B, gross margin 14.7%–15.2%, diluted EPS $4.00–$5.00.

• Challenging Q2 expected, with improvement in Q3 and Q4; FY26 expected to be stronger.

• Long-term RV demand outlook remains positive, supported by consumer interest and new product reception.

• Industry forecasts for 2024 and 2025 revised downward due to high interest rates; recovery in shipments delayed.

• Dealer inventories are at or slightly above comfortable levels in North America; European inventories in line with seasonal norms.