Thor Withholds Fiscal 2027 Guidance After Profit Collapse
Fourth-quarter net income attributable to THOR was $40.8 million, or $0.78 a share, as the company deferred fiscal 2027 guidance pending Hershey and Elkhart industry events.
THOR Industries (THO), the world’s largest recreational-vehicle manufacturer, reported a sharp sequential drop in sales and profit in the fiscal fourth quarter ended July 31, 2026, and said it would wait to issue fiscal 2027 guidance until after two North American industry shows in late September.
Net sales were $2.31 billion, down 8.4% from a year earlier. The sequential decline widened: sales had fallen 3.9% in the fiscal third quarter, then 17.6% from that quarter’s $2.78 billion. Net income attributable to THOR was $40.8 million, or $0.78 a share, after $97.2 million, or $1.86 a share, in the prior quarter. EBITDA was $130.0 million. Adjusted EBITDA was $131.7 million.
Gross profit was $285.6 million and the gross margin was 12.4%. President and Chief Executive Officer Bob Martin said fiscal 2026 proved more challenging than anticipated, with stubborn interest rates, elevated fuel costs and inflation keeping retail soft through the critical selling season. He said earnings did not keep pace with the top line as affordability concerns and material costs pressured gross margins.
North American Towable RVs accounted for most of the volume loss. Segment net sales were $687.3 million, down 22.7% from a year earlier, on a 19.7% drop in unit shipments; fifth-wheel units fell 34.7%. Gross margin was 10.5%. The margin decline reflected lower volumes, unfavorable mix, more promotional activity and a higher material-cost percentage. Independent dealer inventory of towable product was down 16.0% versus a year earlier. Order backlog was $916.6 million.
North American Motorized RVs posted net sales of $499.3 million, down 10.4%, on a 13.1% unit decline that a 2.7% rise in net price per unit only partly offset. Gross margin was 5.3%. The segment recorded a $5.2 million pretax loss. The prior-year period included an $11.2 million insurance settlement. Order backlog was $728.2 million.
European RVs moved the other way. Net sales were $969.2 million, up 5.0%, on a 3.9% unit increase and a 1.1% net price-per-unit increase. Gross margin was 15.3%. Income before income taxes was $55.0 million. Mix continued to shift toward higher-priced motorized products from lower-priced caravans, and supplier dynamics in Europe were more favorable than in North America. Order backlog was $1.65 billion.
Martin said the company exceeded the high end of its fiscal 2026 sales guidance, which had been $9.0 billion to $9.5 billion. Full-year net sales were $9.61 billion. Full-year net income attributable to THOR was $177.5 million, or $3.38 a share. European net sales for the year rose 3.1% on a constant-currency basis.
The company had cut full-year diluted EPS guidance in the third-quarter release to $3.30 to $3.80 from $3.75 to $4.25, leaving the sales range unchanged. For fiscal 2027 it expects a relatively flat retail environment versus fiscal 2026 and deferred numerical guidance until after the Hershey, Pennsylvania show and the Elkhart, Indiana Open House. Senior Vice President and Chief Operating Officer Todd Woelfer said the company is committed to providing complete guidance later this fall, including cost-savings expectations.
Woelfer said the company expects the cumulative impact of strategic initiatives and restructuring to drive more than $100 million of annual cost savings once fully implemented. Chief Financial Officer Colleen Zuhl said fiscal 2026 debt was reduced by $59.7 million and $115.1 million of shares were repurchased, including $34.3 million in the fourth quarter. Cash and cash equivalents were $482.0 million. Long-term debt, net, was $865.1 million.
Martin said the company is evolving its North American RV operating model and accepting near-term margin pressure in exchange for long-term health. Woelfer said independent dealer inventory had declined 11.5% as of July 31, 2026 versus a year earlier, and both North American Motorized and European gained market share for the six months ended June 30, 2026, with North American Motorized up 130 basis points.