Thor Industries(THO) - 2025 Q2 - Quarterly Results

Financial Performance - Consolidated net sales for Q2 fiscal 2025 were $2.02 billion, down 8.6% from $2.21 billion in Q2 fiscal 2024[8]. - Net loss attributable to THOR Industries was $(0.6) million, resulting in a diluted loss per share of $(0.01), compared to a net income of $7.2 million and earnings per share of $0.13 in the prior year[9]. - EBITDA for Q2 fiscal 2025 was $76.3 million, down from $103.2 million in Q2 fiscal 2024[10]. - Consolidated net sales for the first half of fiscal 2025 were $4.16 billion, down from $4.71 billion in the prior year, reflecting a decrease in gross profit margin from 13.4% to 12.7%[33]. - Net income for the three months ended January 31, 2025, was a loss of $3,089,000 compared to a profit of $5,326,000 in the same period last year[38]. - Adjusted EBITDA for the six months ended January 31, 2025, was $194,797,000, down from $275,604,000 in the prior year, reflecting a decrease of about 29.3%[38]. - EBITDA for the three months ended January 31, 2025, was $76,344,000, down from $103,242,000, a decrease of approximately 26.0%[38]. Sales and Market Trends - North American Towable RV net sales increased 13.3% to $828.3 million, driven by a 27.6% increase in unit shipments[11]. - North American Motorized RV net sales decreased 21.8% to $446.3 million, primarily due to a 20.5% reduction in unit shipments[12]. - European RV net sales decreased 21.7% to $612.5 million, with a 27.8% decline in unit shipments[13]. - The order backlog for North American Towable RVs increased by 28.4% to $1.07 billion, while the backlog for European RVs decreased by 40.1% to $1.64 billion[11][13]. Guidance and Projections - The company revised its full-year fiscal 2025 guidance, projecting consolidated net sales between $9.0 billion and $9.5 billion[6]. - The company expects consolidated net sales for fiscal 2025 to be in the range of $9.0 billion to $9.5 billion, narrowing from a previous range of $9.0 billion to $9.8 billion[29]. - The updated gross profit margin guidance for fiscal 2025 is now projected to be between 13.8% and 14.5%, down from the previous range of 14.7% to 15.2%[29]. - Diluted earnings per share are now expected to be in the range of $3.30 to $4.00, revised from $4.00 to $5.00[29]. Operational Efficiency and Strategy - Management emphasized a strategic focus on deepening dealer relationships and aligning production with retail demand to optimize inventory levels[16][17]. - The company generated cash from operations of approximately $30.8 million in the second quarter, totaling $61.6 million for the fiscal year-to-date, improving cash flow by over $100 million compared to the first half of the previous year[19]. - Capital expenditures for the first half of fiscal 2025 were approximately $51.5 million, with a focus on time-sensitive investments[20]. - The company reduced total indebtedness by approximately $90.5 million and returned $53.2 million to shareholders through dividends[20]. Liquidity and Financial Position - As of January 31, 2025, the company had liquidity of approximately $1.23 billion, including $373.8 million in cash and $855.0 million available under its credit facility[19]. - Cash and cash equivalents decreased to $373,819,000 from $501,316,000 year-over-year, representing a decline of approximately 25.4%[35]. - Total current assets decreased to $2,524,469,000 from $2,650,027,000, a reduction of approximately 4.7%[35]. - Long-term debt decreased to $1,003,395,000 from $1,101,265,000, indicating a reduction of about 8.9%[35]. - Stockholders' equity decreased to $3,953,495,000 from $4,074,053,000, a decline of approximately 3.0%[35]. - Inventories increased slightly to $1,379,419,000 from $1,366,638,000, reflecting a growth of about 0.9%[35]. Market Outlook - The company remains cautious about the market outlook despite an upward revision in the RVIA's forecast for 2025, citing concerns over consumer confidence and tariff impacts[24]. - European RV gross profit margin decreased to 13.2% of net sales in Q2 fiscal 2025, down from 15.3% in the prior-year period, primarily due to increased manufacturing overhead costs[23]. - The company reported a net expense related to certain contingent liabilities of $0 for the six months ended January 31, 2025, compared to an income of $14,200,000 in the prior year[38]. - The company considers Adjusted EBITDA a meaningful measure for evaluating ongoing operating trends, despite it not being a GAAP measure[39].