Thor Industries(THO) - 2025 Q3 - Quarterly Report

Market Performance - THOR's North American market share for travel trailers and fifth wheels was approximately 38.2%, and for motorhomes, it was approximately 45.9% as of March 31, 2025[78]. - North American RV independent dealer inventory increased by 4.4% to approximately 91,800 units as of April 30, 2025, compared to 87,900 units in the previous year[80]. - THOR's North American RV backlog decreased by $149,074, or 8.9%, to$ 1,518,057 as of April 30, 2025, primarily due to a decrease in Towable backlog[81]. - North American wholesale unit shipments for the quarter ended March 31, 2025, totaled 97,848 units, an increase of 13.9% from 85,941 units in the same quarter of 2024[82]. - North American retail unit registrations for the quarter ended March 31, 2025, totaled 70,103 units, a decrease of 8.7% from 76,812 units in the same quarter of 2024[83]. - THOR's North American wholesale RV shipments for the quarter ended March 31, 2025, were 39,742 units, reflecting a 15.1% increase from 34,524 units in the same quarter of 2024[85]. - Retail statistics for THOR's North American RV products showed a total of 26,974 units registered for the quarter ended March 31, 2025, down 12.7% from 30,909 units in the same quarter of 2024[86]. - The RVIA projects total wholesale unit shipments for 2025 to be approximately 337,000 units, up 1.0% from 2024[82]. Financial Performance - North American recreational vehicle net sales increased by 6.8% to $1,835,564,000 for the three months ended April 30, 2025, compared to$ 1,718,341,000 for the same period in 2024[107]. - European recreational vehicle net sales decreased by 5.1% to $883,542,000 for the three months ended April 30, 2025, compared to$ 931,061,000 for the same period in 2024[107]. - Total recreational vehicle net sales rose by 2.6% to $2,719,106,000 for the three months ended April 30, 2025, compared to$ 2,649,402,000 for the same period in 2024[107]. - Consolidated net sales for the three months ended April 30, 2025 increased by $93,703, or 3.3%, compared to the same period in 2024[111]. - Consolidated gross profit for the three months ended April 30, 2025 increased by$ 21,267, or 5.0%, with a gross profit margin of 15.3% compared to 15.1% in the prior year[112]. - Income before income taxes increased by $13,230, or 9.3%, for the three months ended April 30, 2025, driven by higher consolidated net sales and improved gross profit percentage[115]. - The effective income tax rate decreased to 13.9% for the three months ended April 30, 2025, down from 20.2% in the prior year, due to a favorable jurisdictional mix of earnings[116]. Cost and Expenses - Selling, general and administrative expenses for European operations increased by 10.8% to$ 79,937,000 for the three months ended April 30, 2025, compared to $72,167,000 for the same period in 2024[109]. - The company anticipates continued downward pressure on overall sales volume in the short term due to the current macroeconomic environment and changing consumer preferences[101]. - Selling, general and administrative expenses increased by$ 20,156, or 3.0%, despite a decrease in net sales[152]. - Corporate costs in selling, general and administrative expenses increased by $10,097, driven by higher compensation costs and employee separation expenses[157]. Product Performance - North American Towable net sales increased by 9.1% to$ 1,168,878 for the three months ended April 30, 2025, supported by a 5.5% increase in unit shipments[121]. - The number of fifth wheel units sold increased by 35.2% compared to the prior-year quarter, contributing to the overall growth in North American Towable sales[121]. - North American Motorized net sales increased by 3.1% to $666,686, driven by a 10.9% increase in unit shipments despite a 7.8% decrease in overall net price per unit[129]. - Class A net sales decreased by 17.3% to$ 174,783, while Class C and Class B net sales increased by 8.8% to $340,530 and 23.4% to$ 151,373, respectively[129]. - Travel Trailers net sales decreased by $13,220, or 0.7%, while Fifth Wheels net sales increased by$ 161,327, or 17.2%[159]. European Market Insights - Independent dealer inventory of European RV products decreased by 6.9% to approximately 23,000 units as of April 30, 2025, compared to approximately 24,700 units as of April 30, 2024[95]. - THOR's European RV backlog decreased by $591,511, or 30.6%, to$ 1,343,608,000 as of April 30, 2025, compared to $1,935,119,000 as of April 30, 2024[96]. - European unit registrations for motorcaravans and campervans decreased by 10.4% to 31,838 units for the quarter ended March 31, 2025, compared to 35,528 units for the same quarter in 2024[97]. - Total European unit registrations decreased by 9.2% to 36,816 units for the quarter ended March 31, 2025, compared to 40,561 units for the same quarter in 2024[97]. - Total European Recreational Vehicle net sales fell by 13.2% to$ 2,100,910, driven by a 21.7% decrease in unit shipments[174]. Cash Flow and Capital Management - Cash and cash equivalents as of April 30, 2025, totaled $508,321, an increase of$ 7,005 from $501,316 on July 31, 2024, primarily due to cash provided by operations[183]. - Net working capital increased to$ 1,180,697 as of April 30, 2025, compared to $1,083,005 at July 31, 2024[184]. - Net cash provided by operating activities for the nine months ended April 30, 2025, was$ 319,249, up from $207,532 for the same period in 2024[189]. - Net cash used in investing activities was$ 67,342 for the nine months ended April 30, 2025, primarily due to capital expenditures of $85,050[192]. - Net cash used in financing activities was$ 244,090 for the nine months ended April 30, 2025, including debt payments and quarterly dividend payments totaling $79,755[193]. - The company plans to continue regular quarterly cash dividend payments, having increased the dividend from$ 0.48 to $0.50 per share in October 2024[195].