Thor Industries (THO) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY26 rose 11.5% year-over-year to $2.39 billion, driven by strong North American Motorized and European RV sales, with all major segments except North American Towable showing growth.

• Net income was $21.7 million, a turnaround from a net loss of $1.8 million in Q1 FY25.

• Gross profit margin improved by 30 basis points to 13.4%, with gross profit up 14.0% to $321.0 million.

• North American market share increased for the second consecutive quarter, with retail trends outperforming expectations and appropriate dealer inventory levels.

• Strategic initiatives, including new product launches and digital platforms, contributed to operational improvements and margin expansion.

Financial highlights

• EBITDA increased 31.6% year-over-year to $107.5 million; adjusted EBITDA rose 21.5% to $131.0 million.

• Diluted EPS was $0.41, compared to a loss per share of $0.03 in the prior year.

• Cash flows from operations were negative $44.9 million, primarily due to increased inventory to support demand.

• SG&A expenses increased 5.8% due to higher sales-related costs and incentive compensation.

• Effective tax rate was 28.7%, up from 24.5% in the prior-year quarter, due to losses in foreign jurisdictions without tax benefit.

Outlook and guidance

• FY26 consolidated net sales are projected at $9.0–$9.5 billion, with gross margin expected to remain stable at the midpoint.

• Diluted EPS guidance is $3.75–$4.25, assuming balanced wholesale and retail volumes and a steady European market.

• Retail in North America is expected to decline low- to mid-single digits, with stable market share.

• No significant financial impact from ongoing restructuring initiatives is included in the outlook.

• Long-term industry growth is anticipated despite near-term headwinds from inflation and interest rates.