It has been about a month since the last earnings report for Thor Industries (THO). Shares have lost about 14.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Thor Industries due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Thor Industries, Inc. before we dive into how investors and analysts have reacted as of late.
THOR Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
THOR reported earnings of 4 cents per share for the second quarter of fiscal 2026 (ended Jan. 31), beating the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, the company posted a loss of 1 cent per share.
THOR registered revenues of $2.13 billion for the fiscal second quarter, surpassing the Zacks Consensus Estimate of $1.98 billion. The top line increased 5.3% year over year.
Segmental Results
North American Towable RVs: Segment revenues declined 14.2% year over year to $710.49 million due to a drop in unit shipments. The revenues missed our estimate of $719.2 million. Unit shipments in the quarter under review totaled 21,577, down from 28,013 units in the year-ago period.
Gross profit totaled $75.5 million, down 17.6% year over year due to higher material and overhead costs. Pretax income increased to $31.2 million from $28.2 million in the prior-year quarter, thanks to higher gains on asset sales. The unit’s backlog stood at $621.5 million at quarter-end, compared with $1.07 billion as of Jan. 31, 2025.
North American Motorized RVs: Segment revenues totaled $577.07 million, up 29.3% year over year, driven by an increase in unit shipments. The figure also surpassed our estimate of $465.9 million. Unit shipments totaled 4,524 compared with 3,526 reported a year ago.
Gross profit totaled $54.64 million, up 57.3% year over year, driven by volume leverage and lower labor costs. Pretax profit rose sharply to $20.9 million from the year-ago period. The segment’s backlog stood at $1.04 billion, down from $1.12 billion as of Jan. 31, 2025.
European RVs: Segment revenues totaled $684.47 million, up 11.8% year over year due to an increase in unit shipments. The figure also surpassed our estimate of $599.3. Unit shipments totaled 9,465 compared with 9,442 reported a year ago.
Gross profit totaled $75.1 million, down 7.2% year over year due to a greater share of lower-margin special-edition motorcaravans and higher warranty costs. The segment reported a pretax loss of $12.3 million compared with pretax income of $2.21 million in the year-ago period. The backlog stood at $1.83 billion, up from $1.64 billion as of Jan. 31, 2025.
Financials
As of Jan. 31, 2026, THOR had cash and cash equivalents of $242.2 million and long-term debt of $877.7 million.
Thor Provides 2026 Guidance
THOR expects its fiscal 2026 consolidated net sales to be in the range of $9-$9.5 billion compared with $9.58 billion in fiscal 2025. EPS is expected to be in the range of $3.75-$4.25 compared with $4.84 in fiscal 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -8.2% due to these changes.
VGM Scores
Currently, Thor Industries has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Thor Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
