Thor Industries (THO) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales were $2.78B, down 3.9% year-over-year, with North American Towable sales declining 24.6% while Motorized rose 7.7% and European increased 11.8%.

• Net income for Q3 FY26 was $97.2M, down 28.1% year-over-year, with diluted EPS at $1.86, down from $2.53.

• Adjusted EBITDA for the quarter was $183.6M, and EBITDA was $209.1M; gross profit was $354.8M, down 19.9%.

• Share repurchases totaled $50.5M in Q3, and net income benefited from favorable investment and real estate gains.

• Strategic realignment of North American RV operations is underway, with brand realignment and operational standardization initiatives progressing.

Financial highlights

• Gross profit margin declined to 12.8% from 15.3% year-over-year, with gross profit at $354.8M.

• Year-to-date net sales grew 3.4% to $7.3B, with net income up 2.9% to $136.7M.

• Operating cash flow for the nine months was $77M, down from $319M prior year, mainly due to higher working capital needs.

• Cash and equivalents at quarter-end were $372M, with total liquidity $1.37B and outstanding debt $883M.

• Quarterly EPS was $1.86 (basic and diluted), compared to $2.54 and $2.53 in the prior year.

Outlook and guidance

• FY26 consolidated net sales guidance revised to $9.0B–$9.5B, with diluted EPS expected between $3.30–$3.80.

• Gross margin expected to decline at midpoint; North American retail market projected to see mid-teens decline.

• Guidance reflects ongoing macroeconomic, inflation, and consumer confidence pressures.

• North American RV wholesale shipments for calendar 2026 are forecasted to decline 8.2% year-over-year.

• Total tax rate guidance raised to 26–28%.