Financial Position - As of April 30, 2025, cash, cash equivalents, and restricted cash totaled $11.788 billion, down from $15.105 billion on October 31, 2024[284]. - Total debt decreased to $17.530 billion as of April 30, 2025, compared to $18.246 billion on October 31, 2024[284]. Cash Flow and Operating Activities - Net cash used in operating activities for the six months ended April 30, 2025, was $(851) million, a decrease of $2.0 billion compared to the same period in fiscal 2024[287][288]. - Free cash flow for the six months ended April 30, 2025, was $(1.724) billion, compared to $128 million in the same period of fiscal 2024[287]. - Net cash provided by operating activities for the six months ended April 30, 2025, was $1,157 million, compared to $(851) million for the same period in 2024[320]. Investment and Financing Activities - The company repurchased shares totaling $102 million during the first six months of fiscal 2025, with a remaining authorization of approximately $0.7 billion for future repurchases[280]. - The divestiture of the CTG business to HCLTech was completed on December 1, 2024, resulting in net proceeds of $210 million and a gain of $244 million[281]. - In September 2024, the company issued $9.0 billion of senior unsecured notes and $1.5 billion of Preferred Stock to fund the acquisition of Juniper Networks[282]. - Net cash used in financing activities decreased by $0.2 billion for the six months ended April 30, 2025, primarily due to lower repayments of debt of $1.2 billion[294]. Performance Metrics - GAAP net revenue for the three months ended April 30, 2025, was $7.627 billion, an increase from $7.204 billion in the same period of 2024[311]. - GAAP gross profit margin for the three months ended April 30, 2025, was 28.4%, down from 33.0% in the same period of 2024[311]. - Non-GAAP earnings from operations for the six months ended April 30, 2025, were $1.393 billion, compared to $1.459 billion in the same period of 2024[313]. - GAAP net loss for the three months ended April 30, 2025, was $1,050 million, resulting in a diluted net EPS of $(0.82) compared to a net earnings of $314 million and diluted net EPS of $0.24 for the same period in 2024[315]. - Non-GAAP net earnings attributable to HPE for the three months ended April 30, 2025, were $545 million, with a diluted net EPS of $0.38, compared to $561 million and $0.42 for the same period in 2024[315]. Cash Management and Future Projections - The cash conversion cycle increased to 26 days as of April 30, 2025, compared to (12) days on October 31, 2024, indicating a longer time to convert investments in inventory and receivables into cash[288]. - Days of sales outstanding (DSO) increased to 46 days as of April 30, 2025, from 38 days on October 31, 2024, reflecting slower collections[288][289]. - Days of supply in inventory (DOS) increased to 134 days as of April 30, 2025, compared to 120 days on October 31, 2024, indicating a longer inventory turnover period[288][290]. - The company anticipates making contributions of approximately $102 million to non-U.S. pension plans for the remainder of fiscal 2025[303]. - Future cash payments of approximately $140 million are expected in connection with approved restructuring plans, including $28 million expected to be paid through the remainder of fiscal 2025[304]. - The cost reduction program is expected to incur future cash payments of approximately $350 million, with $140 million expected to be paid through the remainder of fiscal 2025[305]. Impairments and Adjustments - The company incurred $1,361 million in goodwill impairment for the three months ended April 30, 2025[315]. - Stock-based compensation expense for the three months ended April 30, 2025, was $116 million, resulting in a diluted net EPS impact of $0.09[315]. - Non-GAAP net earnings attributable to HPE exclude charges related to amortization of intangible assets, goodwill impairment, and transformation costs to provide a clearer view of operating performance[331]. - In Q2 fiscal 2025, HPE recorded a non-cash impairment charge for goodwill associated with its Hybrid Cloud reporting unit, which is excluded from non-GAAP measures[331]. Divestitures and Strategic Changes - The divestiture of H3C resulted in $2.1 billion of pre-tax consideration, impacting future investment earnings and cash flows[328]. - HPE completed the disposition of CTG on December 1, 2024, resulting in a gain of $244 million, which is considered a discrete event for non-GAAP calculations[331]. - HPE stopped reporting H3C earnings in non-GAAP results due to a planned divestiture, having divested 30% of H3C's total issued share capital on September 4, 2024[332]. Tax and Financial Reporting - The projected non-GAAP income tax rate for fiscal 2025 is set at 15%, consistent with the previous fiscal year, reflecting the company's tax structure and positions[334]. - Free Cash Flow (FCF) is defined as cash flow from operations less net capital expenditures, adjusted for exchange rate fluctuations, and is used to evaluate liquidity for investments and stock repurchases[335]. - Non-GAAP financial measures are not substitutes for GAAP results and may not reflect the full economic impact of asset value loss, thus requiring careful reconciliation with GAAP measures[336]. - HPE's management emphasizes the importance of GAAP results while using non-GAAP measures as a supplement for evaluating operating performance[337].

Financial Performance - Net sales for the thirteen weeks ended May 3, 2025, were $249.1 million, a slight increase from $244.2 million in the same period last year, representing a growth of 1.5%[24] - Gross profit for the same period was $75.6 million, compared to $73.8 million in the prior year, indicating a gross margin improvement[24] - The company reported a net loss of $21.3 million for the thirteen weeks ended May 3, 2025, compared to a net loss of $18.1 million for the same period in 2024, reflecting a deterioration in profitability[24] - The net loss for the thirteen weeks ended May 3, 2025, was $21,254 thousand, compared to a net loss of $18,066 thousand for the same period in 2024, representing an increase in loss of approximately 12.1%[30] - Total net sales for the thirteen weeks ended May 3, 2025, were $249,103, compared to $244,240 for the same period in 2024, representing a growth of approximately 1.5%[68] - Gross profit for the same period increased to $75,643 from $73,786, reflecting a gross margin improvement[68] - During the 13 weeks ended May 3, 2025, the Company recognized a net loss of $21,254, resulting in a basic and diluted loss per share of $0.56[97] Cash and Liquidity - Total current assets increased to $441.4 million as of May 3, 2025, up from $366.0 million as of February 1, 2025, showing a significant liquidity improvement[21] - The company’s cash and cash equivalents increased to $3.6 million from $2.8 million, enhancing its cash position[21] - Cash and cash equivalents at the end of the period were $3,560 thousand, up from $2,168 thousand at the end of the same period in 2024, reflecting an increase of approximately 64.0%[30] - Net cash used in operating activities was $60,234 thousand for the thirteen weeks ended May 3, 2025, compared to $34,650 thousand for the same period in 2024, indicating a significant increase of approximately 74.0%[30] - The company reported a net cash provided by financing activities of $64,766 thousand for the thirteen weeks ended May 3, 2025, compared to $36,965 thousand for the same period in 2024, an increase of approximately 75.2%[30] Expenses and Liabilities - Selling, general, and administrative expenses were $95.3 million for the thirteen weeks ended May 3, 2025, slightly higher than $94.4 million in the prior year, reflecting ongoing operational costs[24] - Total liabilities rose to $714.6 million as of May 3, 2025, compared to $616.4 million as of February 1, 2025, indicating increased financial leverage[21] - The company incurred $2,821 thousand in interest paid during the period, compared to $2,688 thousand in the same period of the previous year, reflecting an increase of approximately 4.9%[30] - Total lease expense for the thirteen weeks ended May 3, 2025, was $23,977, up from $23,398 in 2024[61] - The company’s operating lease liabilities increased significantly, with a change of $9,869 thousand for the period ended May 3, 2025, compared to $1,477 thousand in the same period of 2024[30] Market and Operational Strategy - The company plans to focus on financial discipline and expense reduction in response to adverse macroeconomic conditions, which may impact future performance[16] - The company is exploring new market opportunities and plans to open additional stores, although success in these initiatives is uncertain[16] - The company operated 146 stores across 32 states as of May 3, 2025, maintaining its retail presence while also managing an e-commerce platform[34] Legal Matters - A putative class action lawsuit was filed against the Company and its Board of Directors on January 22, 2024, in the Delaware Court of Chancery[112] - The lawsuit claims that certain provisions in the Company's advance notice bylaws are invalid and that the Board members breached their fiduciary duty of loyalty[112] - The plaintiff seeks declaratory, equitable, and injunctive relief, along with attorneys' fees and other costs on behalf of the putative class[112] - The Court stayed the action on March 27, 2025, pending the resolution of motions to dismiss in other cases challenging advance notice bylaws[112] Shareholder Information - The weighted average shares outstanding for basic and diluted shares were 38.1 million for the current period, compared to 37.6 million in the prior year, indicating a slight increase in share count[24] - The Company had $314 in outstanding deferred financing fees as of May 3, 2025[91] - As of May 3, 2025, the number of shares available for awards under the Amended 2019 Plan was 1,954[99] Tax and Financing - The effective tax rate for the Company during the 13 weeks ended May 3, 2025, was 5.9%, significantly lower than the 23.2% rate for the same period in 2024[94] - Long-term debt remained stable at $25,000 as of May 3, 2025, with an interest rate of 10.42%[70][76] - The interest rate on the amounts outstanding under the Revolving Line of Credit was 5.98% as of May 3, 2025, compared to 5.74% on February 1, 2025[86] - The Revolving Line of Credit matures on May 27, 2027, and contains customary affirmative and negative covenants[89] - The Company has a borrowing base calculation for its Term Loan, with $18,000 available for borrowing as of May 3, 2025[76] - The Company held approximately $416,400 in collateralized eligible inventory and credit card receivables related to the Term Loan and the Revolving Line of Credit as of May 3, 2025[89]

Financial Performance - The Company reported net income of $343.4 million for the 13 weeks ended May 3, 2025, compared to $300.1 million for the same period in 2024, representing an increase of approximately 14.4%[49] - Income from continuing operations was $313.5 million for the 13 weeks ended May 3, 2025, up from $267.7 million in the prior year, reflecting a growth of about 17.1%[49] - Basic earnings per share for continuing operations increased to $1.47 for the 13 weeks ended May 3, 2025, from $1.23 in the prior year, marking a growth of approximately 19.5%[49] Share Repurchase - The Company repurchased 5,926,985 shares of common stock at a cost of $436.8 million during the 13 weeks ended May 3, 2025, compared to 2,537,302 shares for $312.8 million in the same period of 2024[50] Business Transactions - The Company entered into a definitive agreement to sell the Family Dollar business for a purchase consideration of $1,007.0 million, with estimated net proceeds of approximately $800 million expected to close in the second quarter of fiscal 2025[26] - The company has entered into a definitive agreement to sell the Family Dollar business for $1,007.0 million, with estimated net proceeds of approximately $800 million expected to close in Q2 fiscal 2025[60] Insurance and Losses - The Company incurred losses of $117.0 million due to a tornado that destroyed its distribution center in Marietta, Oklahoma, but these losses were fully offset by insurance receivables[30] - The Company received insurance proceeds totaling $150.0 million in fiscal 2024 related to the tornado, including $100.0 million for damaged inventory[32] Debt and Credit Facilities - The Company has a new $1.5 billion revolving credit facility that matures on March 21, 2030, and a $1.0 billion 364-Day Revolving Credit Facility maturing on March 20, 2026[38][41] - The fair value of the Company's Senior Notes was reported at $3,147.6 million as of May 3, 2025, compared to $3,140.9 million as of February 1, 2025[47] - The company’s outstanding payment obligations under the supply chain finance program were $352.0 million as of May 3, 2025, compared to $42.4 million a year earlier[59] Segment Performance - Dollar Tree segment net sales for the 13 weeks ended May 3, 2025, were $4,636.5 million, a 11.3% increase from $4,165.6 million in the same period last year[56] - Gross profit for the Dollar Tree segment was $1,649.5 million, representing a gross margin of 35.5%, compared to $1,476.5 million and a gross margin of 35.4% for the same period last year[56] - Operating income for the Dollar Tree segment was $522.7 million, up from $522.3 million year-over-year, indicating stable operational performance despite increased costs[56] - The Family Dollar business reported net sales of $3,309.6 million for the 13 weeks ended May 3, 2025, down from $3,460.8 million in the prior year, reflecting a decline of approximately 4.4%[61] - Capital expenditures for the Dollar Tree segment were $238.3 million for the 13 weeks ended May 3, 2025, compared to $271.4 million in the same period last year[55] Market Risks and Inflation - The company is exposed to market risks including interest rate changes, with no borrowings outstanding under credit facilities as of May 3, 2025[119] - Inflationary factors impacting the business include merchandise costs, transportation costs (including diesel fuel), store construction-related costs, and labor[120] - Significant inflationary pressures may not be fully offset through product assortment adjustments, operational efficiencies, or increases in comparable store net sales[120] - Failure to manage inflationary costs could harm the business, financial condition, and results of operations[120]

Financial Performance - Consolidated net sales for the three months ended April 30, 2025, increased by $12.2 million, or 2.0%, compared to the prior year quarter, while net sales for the six months decreased by $48.7 million, or 4.0%[99][100]. - Gross profit for the three months ended April 30, 2025, increased by $18.4 million, or 23.8%, compared to the prior year quarter, with a gross margin of 15.2%, while for the six months, gross profit increased by $25.3 million, or 18.0%[101][102]. - The company reported a net income of $19.0 million for the three months ended April 30, 2025, compared to $15.2 million in the prior year quarter, and a net income of $37.2 million for the six months compared to $197.9 million in the prior year[97]. - Adjusted EBITDA for the three months ended April 30, 2025, was $58.9 million, compared to $37.5 million in the prior year quarter, and for the six months, it was $95.7 million compared to $68.0 million[97]. - Consolidated net income increased by $3.8 million to $19.0 million for the three months ended April 30, 2025, but decreased by $160.7 million to $37.2 million for the six months ended April 30, 2025 compared to the prior year[112][113]. - Consolidated Adjusted EBITDA increased by $21.4 million, or 40.7%, to $58.9 million for the three months ended April 30, 2025, and by $27.7 million, or 68.0%, for the six months ended April 30, 2025[114][115]. - Adjusted Net Income increased by $14.5 million, or 69.4%, to $35.4 million for the three months ended April 30, 2025, and by $20.7 million, or 58.1%, for the six months ended April 30, 2025[116][117]. Segment Performance - The Specialty Vehicles segment saw increased shipments of fire apparatus contributing to higher net sales, while the Recreational Vehicles segment experienced lower unit shipments[99][100]. - The gross profit margin for the Specialty Vehicles segment improved, while the Recreational Vehicles segment faced challenges with lower gross margins[101][102]. - Specialty Vehicles segment net sales increased by $16.5 million, or 3.8%, to $453.9 million for the three months ended April 30, 2025, while decreasing by $30.5 million, or 3.6%, to $824.1 million for the six months ended April 30, 2025[119][120]. - Recreational Vehicles segment net sales decreased by $4.4 million, or 2.4%, to $175.3 million for the three months ended April 30, 2025, and by $18.8 million, or 5.4%, to $330.3 million for the six months ended April 30, 2025[123][124]. - Specialty Vehicles segment Adjusted EBITDA increased by $22.5 million, or 66.6%, to $56.3 million for the three months ended April 30, 2025, and by $31.5 million, or 52.5%, for the six months ended April 30, 2025[121][122]. Costs and Expenses - Selling, general and administrative (SG&A) costs decreased by $4.7 million, or 9.3%, for the three months ended April 30, 2025, and by $18.9 million, or 17.7%, for the six months[103][104]. - Consolidated loss on assets held for sale was $30.0 million for both the three and six months ended April 30, 2025, resulting from the strategic decision to exit the non-motorized recreational vehicle manufacturing business[109]. Cash Flow and Financing - Net cash provided by operating activities for the six months ended April 30, 2025 was $103.9 million, a significant improvement from a net cash used of $29.6 million in the same period of 2024[132]. - Net cash used in investing activities for the six months ended April 30, 2025 was $15.9 million, compared to a net cash provided of $301.9 million in 2024, primarily due to capital expenditures[133]. - Net cash used in financing activities for the six months ended April 30, 2025 was $83.8 million, down from $255.4 million in 2024, with stock repurchases totaling $107.6 million[134]. - The company repurchased 3,456,979 shares at a cost of $107.6 million during the six months ended April 30, 2025, at an average price of approximately $31.10 per share[137]. - As of April 30, 2025, the company's outstanding debt under the Amended 2021 ABL Facility was $130.0 million, with availability of $263.2 million[139]. Strategic Decisions and Outlook - The company discontinued manufacturing operations at ENC and sold Collins in the first quarter of fiscal year 2024, impacting the Bus Manufacturing Businesses[96]. - The company is actively evaluating acquisition opportunities to expand its business, which has historically been a significant growth driver[95]. - The first fiscal quarter is typically the slowest sales volume quarter due to seasonal factors, impacting overall performance[94]. - Consolidated gain on sale of business was $1.5 million for the three months ended April 30, 2024, and $259.0 million for the six months ended April 30, 2024, primarily due to the sale of the Collins and Fire RTC businesses[107][108]. - Consolidated income tax benefit was $5.7 million for the three months ended April 30, 2025, compared to an expense of $2.7 million for the same period in 2024, reflecting a significant change in tax position[110][111]. Risk and Financial Condition - The company has not created any off-balance sheet arrangements that could materially affect its financial condition[147]. - There have been no material changes in the company's exposure to interest rate risk, foreign exchange risk, and commodity price risk[150].

Financial Performance - Record quarterly net revenues of $197.1 million, representing year-over-year growth of 43.4%[4] - Rare Disease net revenues totaled $69.0 million, with Cortrophin Gel generating $52.9 million, an increase of 43.1% year-over-year[4][14] - Generics net revenues reached $98.7 million, reflecting a 40.5% year-over-year increase driven by new product launches[4][11] - Adjusted non-GAAP EBITDA for the first quarter was $50.7 million, an increase of 34.9% from the previous year[19] - Net revenues for Q1 2025 increased to $197,122,000, up from $137,430,000 in Q1 2024, representing a growth of approximately 43.5%[47] - Operating income for Q1 2025 was $26,194,000, compared to $20,312,000 in Q1 2024, indicating an increase of about 29.1%[47] - Adjusted non-GAAP EBITDA for the three months ended March 31, 2025, was $50,749 thousand, an increase of 34.8% from $37,633 thousand in the prior year[51] - Adjusted non-GAAP net income available to common shareholders for Q1 2025 was $34,144 thousand, up 45.5% from $23,466 thousand in Q1 2024[54] - Adjusted diluted earnings per share for the three months ended March 31, 2025, was $1.70, compared to $1.21 for the same period in 2024, reflecting an increase of 40.5%[54] Guidance and Future Projections - The company raised its 2025 guidance to expected net revenues of $768.0 million to $793.0 million, and adjusted non-GAAP diluted EPS of $6.27 to $6.62[4][21] - Cortrophin Gel is expected to generate net revenues of $265.0 million to $274.0 million in 2025, representing year-over-year growth of 33.8% to 38.3%[4][21] - Forward-looking guidance for 2025 adjusted diluted earnings per share is not provided due to insufficient information for accurate estimates[33] Expenses and Costs - The company experienced a 59.4% increase in selling, general, and administrative expenses to $76.5 million due to the acquisition of Alimera Sciences[17] - Total operating expenses for Q1 2025 were $170,928,000, compared to $117,118,000 in Q1 2024, an increase of approximately 46%[47] - Selling, general, and administrative expenses rose to $76,528,000 in Q1 2025 from $48,021,000 in Q1 2024, marking an increase of approximately 59.3%[47] - Research and development expenses for Q1 2025 were $10,564,000, slightly up from $10,511,000 in Q1 2024, showing a marginal increase of about 0.5%[47] - The company reported a significant increase in research and development expenses, totaling $76,528 thousand for Q1 2025, compared to $48,021 thousand in Q1 2024, reflecting a growth of 59.3%[51] Income and Earnings - The company reported diluted GAAP income per share of $0.69 and record adjusted non-GAAP diluted earnings per share of $1.70 for the first quarter[18] - Basic income per share for Q1 2025 was $0.70, down from $0.84 in Q1 2024, a decline of approximately 16.7%[47] - Diluted income per share for Q1 2025 was $0.69, compared to $0.82 in Q1 2024, reflecting a decrease of about 15.9%[47] - Net income for the three months ended March 31, 2025, was $15,681 thousand, a decrease of 13.4% compared to $18,207 thousand for the same period in 2024[51] - Adjusted non-GAAP net income for Q1 2025 was $15,681,000, compared to $18,207,000 in Q1 2024, reflecting a decrease of approximately 8.4%[47] Assets and Liabilities - Total current assets increased to $536,290 thousand as of March 31, 2025, up from $527,684 thousand on December 31, 2024, representing a growth of 1.15%[49] - Total liabilities decreased to $848,958 thousand as of March 31, 2025, down from $855,167 thousand on December 31, 2024, a reduction of 0.7%[49] - Cash and cash equivalents increased to $149,802 thousand as of March 31, 2025, compared to $144,861 thousand on December 31, 2024, marking a rise of 3.3%[49] - Current liabilities rose to $201,815 thousand as of March 31, 2025, up from $193,680 thousand at the end of 2024, indicating an increase of 4.9%[49] - The company’s total assets reached $1,292,428 thousand as of March 31, 2025, an increase from $1,283,697 thousand on December 31, 2024, representing a growth of 0.6%[49] Market and Product Insights - Approximately 40% of Cortrophin Gel prescribers were new to the ACTH category, indicating strong market penetration[6] - The company plans to market ILUVIEN under an expanded label that includes chronic non-infectious uveitis indications[9]

Financial Performance - Net sales for Q1 FY26 were $474 million, a 4% increase compared to $458 million in Q1 FY25[6] - Comparable sales increased by 5%, with e-commerce sales up 7% and same-store sales up 5%[4] - GAAP EPS was ($2.02) and Non-GAAP EPS was ($2.05), compared to GAAP EPS of ($2.22) and Non-GAAP EPS of ($2.10) in the previous year[4] - Net sales for Q1 2025 were $473.973 million, a 3.0% increase from $457.597 million in Q1 2024[25] - Operating loss for Q1 2025 was $28.145 million, an improvement from a loss of $32.128 million in Q1 2024[25] - Net loss for Q1 2025 was $21.227 million, compared to a net loss of $24.347 million in Q1 2024, resulting in a basic loss per share of $2.02[25] Store Operations - The company opened 4 stores and closed 26 stores, ending the quarter with 1,256 stores, a 5% decrease from the previous year[15] - The company closed 26 stores in Q1 2025, resulting in a total of 1,256 retail stores[31] Margins and Expenses - Gross margin for Q1 FY26 was 46.7%, down from 47.3% in Q1 FY25, primarily due to changes in brand mix and promotional activity[9] - Selling and administrative expenses decreased by 170 basis points to 52.5% of sales compared to the previous year[10] - Gross margin decreased to 46.7% in Q1 2025 from 47.3% in Q1 2024, with a gross margin charge of $1.6 million related to a distribution model transition[25] - Reported gross margin for Q1 2025 was $221.181 million, representing 46.7% of sales, compared to $216.281 million and 47.3% in Q1 2024[40] - Adjusted gross margin for Q1 2025 was $221.181 million, or 46.7% of sales, down from $217.862 million and 47.6% in Q1 2024[40] Debt and Assets - Total debt increased to $121 million, up from $59.4 million year-over-year, primarily due to a 15% increase in inventories[14] - Total current assets increased to $633.314 million in Q1 2025 from $508.040 million in Q1 2024[29] - Total assets grew to $1.404591 billion in Q1 2025, compared to $1.307417 billion in Q1 2024[29] Future Projections - The company expects adjusted diluted EPS for FY26 to be in the range of $1.30 to $1.70, factoring in current tariffs[5] - Forecasted earnings from continuing operations for Fiscal 2026 range from $12.5 million ($1.17 per share) to $17.0 million ($1.61 per share) net of tax[42] - Adjusted forecasted earnings from continuing operations for Fiscal 2026 are estimated at $13.8 million ($1.30 per share) to $18.0 million ($1.70 per share) net of tax[42] - The forecasted tax rate for Fiscal 2026 is approximately 29%[42] - The share count for Fiscal 2026 reflects 10.6 million shares, including common stock equivalents[42] Share Repurchase - The company repurchased 604,531 shares for $12.6 million during the quarter, with $29.8 million remaining on its share repurchase authorization[16] Tax Rate - The effective tax rate for Q1 FY26 was 28.5%, compared to 26.7% in the same quarter last year[12]

Financial Performance - Consolidated net sales for Q2 2025 were $629.1 million, a 2.0% increase from $616.9 million in Q2 2024, with a 7.7% increase excluding the impact of Bus Manufacturing Businesses[2][5] - Net income for Q2 2025 was $19.0 million, or $0.38 per diluted share, compared to $15.2 million, or $0.28 per diluted share, in Q2 2024[3][5] - Adjusted EBITDA for Q2 2025 was $58.9 million, a 56.8% increase from $37.5 million in Q2 2024, with a 63.6% increase excluding the impact of Bus Manufacturing Businesses[3][5] - Adjusted Net Income for Q2 2025 was $35.4 million, compared to $20.9 million in Q2 2024[5][3] - Operating income for the three months ended April 30, 2025, was $49.7 million, significantly up from $22.9 million in the prior year, marking a 117.0% increase[26] - The company reported a net income of $19.0 million for the three months ended April 30, 2025, compared to $15.2 million in the same period of 2024, representing a 25.0% increase[26] - Adjusted EBITDA for the three months ended April 30, 2025, was $58.9 million, up from $37.5 million in the same period of 2024, indicating a 56.5% increase[29] - Adjusted EBITDA for the six months ended April 30, 2025, was $95.7 million, compared to $68.0 million for the same period in 2024, reflecting a 40.8% increase[33] Segment Performance - Specialty Vehicles segment net sales were $453.9 million in Q2 2025, a 3.8% increase from $437.4 million in Q2 2024, with a 12.2% increase excluding Bus Manufacturing Businesses[7][5] - Recreational Vehicles segment net sales decreased by $4.4 million, or 2.4%, to $175.3 million in Q2 2025 compared to Q2 2024[9][5] - Specialty Vehicles segment backlog increased to $4,282.0 million at the end of Q2 2025, up from $4,064.4 million at the end of Q2 2024[7][5] Guidance and Projections - Updated full-year fiscal 2025 guidance includes net sales of $2.35 to $2.45 billion and Adjusted EBITDA of $200.0 to $220.0 million[5][14] - For fiscal year 2025, the company projects adjusted EBITDA to be between $200.0 million and $220.0 million[37] - The projected net income for fiscal year 2025 is expected to range from $87.8 million to $106.5 million[39] - Free cash flow for fiscal year 2025 is anticipated to be between $100.0 million and $120.0 million[41] Shareholder Actions - The company repurchased approximately 2.9 million common shares for $88.4 million during the quarter[12][5] - The company declared dividends of $0.06 per common share for the three months ended April 30, 2025, compared to $0.05 in the same period of 2024, a 20.0% increase[26] Cash and Debt Management - Cash and cash equivalents at the end of the period were $28.8 million, up from $24.6 million at the beginning of the period, showing a 9.0% increase[27] - Total current liabilities increased to $500.4 million as of April 30, 2025, compared to $469.3 million at the end of October 2024, a rise of 6.4%[26] - Long-term debt increased to $130.0 million as of April 30, 2025, compared to $85.0 million at the end of October 2024, reflecting a 52.9% increase[26] Expenses and Losses - The company incurred stock-based compensation expenses of $3.1 million for the three months ended April 30, 2025, compared to $3.0 million for the same period in 2024[35] - Interest expense for the six months ended April 30, 2025, was $12.4 million, compared to $13.4 million for the same period in 2024, indicating a decrease of 7.5%[33] - The company reported a loss on assets held for sale of $30.0 million for both the three and six months ended April 30, 2025[35] Capital Expenditures - Capital expenditures in Q2 2025 were $11.4 million, an increase from $5.9 million in Q2 2024[12][5]

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].

Financial Performance - Dollar Tree's net sales increased by 11.3% to $4.6 billion compared to the same period in fiscal 2024[10] - Same-store net sales growth was 5.4%, driven by a 2.5% increase in traffic and a 2.8% increase in average ticket[10] - Diluted earnings per share (EPS) from continuing operations was $1.47, representing a 19.5% increase year-over-year[12] - Total revenue for the 13 weeks ended May 3, 2025, was $4,639.7 million, an increase of 11.3% compared to $4,168.9 million for the same period in 2024[32] - Net income for the same period was $343.4 million, up 14.4% from $300.1 million year-over-year[32] - Basic earnings per share from continuing operations increased to $1.47, compared to $1.23 in the prior year, reflecting a growth of 19.5%[32] - Gross profit increased to $988.2 million, resulting in a gross margin of 29.9%, up from 25.2% in the prior year[45] - Operating income rose significantly to $291.9 million, with an operating margin of 8.8%, compared to just 1.1% in the previous year[45] Shareholder Returns - The company completed over $500 million in share repurchases year-to-date, with an additional 780 thousand shares purchased for $67.5 million after the quarter-end[6][13] - Adjusted diluted EPS from continuing operations outlook is updated to a range of $5.15 to $5.65, reflecting the impact of year-to-date share repurchases[19] Store Operations - The company opened 148 new Dollar Tree stores and converted approximately 500 stores to the 3.0 multi-price format[6] - The company opened 148 new stores during the quarter, bringing the total store count to 9,016, a net increase of 496 stores year-over-year[42] - The company closed 25 stores during the quarter, resulting in an ending store count of 7,591, down from 7,877 a year earlier[45] Cash Flow and Liquidity - The company generated $379 million of net cash from operating activities and $130 million of free cash flow from continuing operations[7] - Cash and cash equivalents at the end of the period were $1,311.2 million, an increase from $691.7 million at the same time last year[38] - Free cash flow from continuing operations was $129.7 million, down from $188.7 million in the prior year[62] Outlook and Guidance - The full-year fiscal 2025 net sales outlook is reiterated at a range of $18.5 billion to $19.1 billion, with comparable store net sales growth expected between 3% to 5%[18] Expenses and Margins - Selling, general and administrative expenses increased to $1,268.6 million, representing 27.3% of total revenue, compared to 26.3% in the previous year[32] - The operating income margin decreased to 8.3% from 9.2% year-over-year, indicating a slight decline in operational efficiency[32] - Sales per square foot decreased to $222 from $227 year-over-year, reflecting a decline of 2.2%[45][46] Tax and Other Income - The effective tax rate for the quarter was 25.9%, up from 24.6% in the prior year[32] - The effective tax rate for continuing operations was 25.9%, with an adjusted effective tax rate of 26.1%[59] - Insurance proceeds of $220 million were received related to losses from a tornado that destroyed a distribution center, resulting in a gain of $61.8 million recognized in the first quarter of fiscal 2025[52] - The company incurred $3.7 million in consulting and other expenses related to the strategic review of the Family Dollar business[52] Strategic Initiatives - The sale of Family Dollar is on track to close during the second quarter of fiscal 2025, with estimated net proceeds of approximately $800 million[15]

Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $2.89 billion, a 3.3% increase from $2.80 billion in Q3 fiscal 2024[7] - Gross profit for Q3 fiscal 2025 was $443.1 million, reflecting a 5.0% increase from $421.9 million in Q3 fiscal 2024[2] - Net income attributable to THOR for Q3 fiscal 2025 was $135.2 million, an 18.1% increase compared to $114.5 million in Q3 fiscal 2024[8] - Diluted earnings per share for Q3 fiscal 2025 were $2.53, up 18.8% from $2.13 in Q3 fiscal 2024[8] - The company reported net sales of $2.89 billion for the three months ended April 30, 2025, with a gross profit margin of 15.3%[32] - Net income attributable to THOR Industries, Inc. for the three months ended April 30, 2025, was $135.2 million, representing a 4.7% net margin[32] - Net income for the three months ended April 30, 2025, was $133,928 thousand, compared to $113,577 thousand for the same period in 2024, representing a year-over-year increase of 17.4%[37] - Total revenue for the company was $7,170,290 thousand, an increase from $7,020,823 thousand in the previous period, reflecting a growth of 2.1%[35] Sales Performance - North American Towable RV net sales increased by 9.1% to $1.17 billion in Q3 fiscal 2025, driven by a 5.5% increase in unit shipments[10] - North American Motorized RV net sales rose 3.1% to $666.7 million in Q3 fiscal 2025, supported by a 10.9% increase in unit shipments[15] - European RV net sales decreased by 5.1% to $883.5 million in Q3 fiscal 2025, impacted by a 12.2% decline in unit shipments[16] Guidance and Projections - The company reaffirmed its full-year fiscal 2025 guidance, projecting consolidated net sales between $9.0 billion and $9.5 billion[6] - The company reaffirmed its revised financial guidance for fiscal 2025, expecting consolidated net sales in the range of $9.0 billion to $9.5 billion and a gross profit margin between 13.8% and 14.5%[28] - For fiscal 2025, diluted earnings per share are projected to be in the range of $3.30 to $4.00[28] - The company expects industry wholesale unit shipments for calendar 2025 to be approximately 337,000 units, aligning with its long-held view[21] Operational Efficiency and Challenges - Strategic organizational restructuring is expected to enhance operational efficiencies and align with current market conditions[6] - The company anticipates challenging market conditions in the next two fiscal quarters but remains confident in its long-term strategies[5] - The fourth quarter of fiscal 2025 and the first quarter of fiscal 2026 are anticipated to be challenging due to economic uncertainty impacting consumer confidence[22] Cash Flow and Liquidity - As of April 30, 2025, the company had liquidity of approximately $1.49 billion, including $508.3 million in cash and $985.0 million available under its revolving credit facility[19] - The company generated cash from operations of approximately $257.7 million in the third quarter, bringing the fiscal year-to-date total to $319.2 million, an improvement of over $100 million year-over-year[19] - Selective capital expenditures for the third quarter of fiscal 2025 amounted to approximately $85.1 million, with a focus on time-sensitive investments[20] - The company reduced total indebtedness by approximately $139.2 million through the first three quarters of fiscal 2025 and returned $79.8 million to shareholders via dividends[20] Other Financial Metrics - Adjusted EBITDA for the nine months ended April 30, 2025, was $449,620 thousand, down from $511,703 thousand in the same period of 2024, indicating a decrease of 12.1%[37] - Interest expense for the nine months ended April 30, 2025, was $38,383 thousand, a decrease from $70,256 thousand in the same period of 2024, showing a reduction of 45.4%[37] - Depreciation and amortization of intangible assets for the nine months ended April 30, 2025, was $199,828 thousand, slightly down from $203,548 thousand in the same period of 2024, a decrease of 1.1%[37] - Stock-based compensation expense for the three months ended April 30, 2025, was $8,188 thousand, compared to $9,351 thousand in the same period of 2024, a decrease of 12.5%[37] - The company reported a non-cash foreign currency gain of $2,665 thousand for the three months ended April 30, 2025, compared to a gain of $1,575 thousand in the same period of 2024, an increase of 69.2%[37] - The company incurred employee and facility strategic initiatives expenses of $12,722 thousand for the three months ended April 30, 2025, with no comparable expenses reported in the same period of 2024[37] - The market value loss on equity investments for the nine months ended April 30, 2025, was $1,066 thousand, compared to a gain of $2,820 thousand in the same period of 2024, indicating a significant shift in performance[37] - The company’s total equity investments and other amounted to $332,637 thousand, slightly up from $331,972 thousand in the previous period, reflecting a marginal increase of 0.2%[35]