Here's Why You Should Retain THOR Stock in Your Portfolio Now

Core Insights - THOR Industries, Inc. is positioned to benefit from strategic acquisitions and a strong balance sheet, but faces challenges from declining backlog and rising SG&A expenses [1] Group 1: Strategic Acquisitions and Revenue Streams - Strategic acquisitions, including EHG and Tiffin Homes, have enhanced THOR's market position and expanded its product portfolio, making it the largest RV manufacturer globally [2] - The acquisition of Airxcel has strengthened THOR's supply chain and diversified its revenue, particularly in the aftermarket business [2] - THOR is expanding revenue streams beyond core RV segments through initiatives like RV Partfinder, which improves customer and dealer experiences [3] Group 2: Cost Management and Balance Sheet Strength - THOR has implemented sourcing strategies to mitigate tariff impacts by sourcing a significant portion of raw materials domestically, although some imported components may see cost increases [4] - The company has a debt-to-capital ratio of 0.19, lower than the auto sector's 0.33, providing flexibility for growth opportunities [5] - THOR's commitment to shareholder value is evident in its five-year annualized dividend growth of 4.89%, with $15.8 million paid in quarterly dividends in fiscal 2025 [5] Group 3: Challenges and Market Outlook - The transition to the upcoming model year and changing macroeconomic conditions have led to a decline in THOR's backlog, with North American Towable and European units down 5% and 21.8% year-over-year, respectively [7] - The Recreational Vehicle Industry Association forecasts a 6% drop in North American wholesale RV shipments for the second half of 2025 compared to the same period in 2024, which may negatively impact THOR's sales [8] - Rising SG&A expenses, which increased from 8.9% to 9.6% of net sales in fiscal 2025, are exerting pressure on profit margins [10]