Thor Q2 Earnings Miss Expectations, Revenues Decline Y/Y

Core Insights - Thor Industries, Inc. reported a loss of 1 cent per share for Q2 fiscal 2025, contrasting with the Zacks Consensus Estimate of earnings of 7 cents and down from earnings of 40 cents per share in the same quarter of fiscal 2024 [1] - The company achieved revenues of $2.02 billion for the fiscal second quarter, exceeding the Zacks Consensus Estimate of $1.97 billion, but representing an 8.6% decline year over year [1] Segmental Results - North American Towable RVs: Revenues reached $828.3 million, up 13.3% year over year due to increased unit shipments, surpassing the estimate of $624 million [2] - North American Motorized RVs: Revenues totaled $446.3 million, down 21.8% year over year due to decreased unit shipments, yet exceeding the estimate of $405.6 million [4] - European RVs: Revenues were $612.5 million, down 21.7% year over year, missing the estimate of $827.5 million [5] Financial Performance - Gross profit for the company totaled $91.6 million, reflecting a 70% increase year over year, with pretax income rising to $28.2 million from $661,000 in the prior year [3] - As of January 31, 2025, the company had cash and cash equivalents of $373.8 million and long-term debt of $1 billion, with an operating cash inflow of $30.8 million compared to an outflow of $103.9 million in the same quarter of 2024 [6] Fiscal 2025 Guidance - Thor revised its fiscal 2025 consolidated net sales guidance to a range of $9-$9.5 billion, down from $9-$9.8 billion, and adjusted the gross profit margin expectation to 13.8-14.5% from 14.7-15.2% [7] - The expected EPS range was also lowered to $3.30-$4 from the previous $4-$5 [7]