Thor Industries (THO) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net sales were $2.02B, down 8.6% year-over-year, with a net loss of $0.6M and resilient margins despite macroeconomic headwinds.

• North American Towable segment outperformed, while Motorized and European segments declined sharply.

• Cash flow from operations improved to $30.8M in Q2, up from $(103.9)M year-over-year.

• Management remains optimistic for a market recovery and is focused on strategic dealer relationships and operational discipline.

• Backlog for North American RVs increased 15.2% year-over-year, while European backlog fell 40.1%.

Financial highlights

• Q2 FY2025 net sales: $2.02B, down 8.6% year-over-year; six-month sales: $4.16B, down 11.6%.

• Gross profit margin: 12.1% for Q2, down 20 bps year-over-year.

• Net loss attributable: $(0.6)M; diluted EPS: $(0.01).

• Adjusted EBITDA: $87.0M; EBITDA: $76.3M.

• Cash and equivalents at quarter-end: $373.8M; total liquidity: $1.23B.

Outlook and guidance

• FY2025 consolidated net sales guidance revised to $9.0B–$9.5B (from $9.0B–$9.8B).

• Gross profit margin guidance lowered to 13.8%–14.5% (from 14.7%–15.2%).

• Diluted EPS guidance reduced to $3.30–$4.00 (from $4.00–$5.00).

• Management expects stronger performance and cash generation in the second half of FY2025 and into FY2026, but remains cautious due to market uncertainties.

• Committed capital spend for the remainder of FY2025 is estimated at $125M, mainly for facility upgrades.