Core Insights - Thor Industries, Inc. shares increased by 5% following the release of fourth-quarter earnings that significantly surpassed analyst expectations [1] - The company reported adjusted earnings per share of $2.36 for the quarter ending July 31, 2025, exceeding the consensus estimate of $1.25 [1] - Revenue for the quarter was $2.52 billion, which was above the expected $2.34 billion but represented a 0.4% decline from $2.53 billion in the same quarter last year [1] Segment Performance - North American Motorized RV sales increased by 7.8% to $557.4 million, supported by a 15.9% rise in unit shipments [2] - Towable RV sales decreased by 4.6% to $888.7 million, with unit shipments down by 10.1% as inventory was managed [2] - European RV revenue fell by 2.2% to $923.1 million [2] Future Projections - For fiscal 2026, Thor Industries projected revenue between $9.0 billion and $9.5 billion, aligning with analyst estimates of $9.32 billion [2] - The company guided earnings per share for fiscal 2026 to be between $3.75 and $4.25, compared to expectations of $3.82 [2]

Core Insights - Thor Industries reported revenue of $2.52 billion for the quarter ended July 2025, a decrease of 0.4% year-over-year, but exceeded the Zacks Consensus Estimate by 9.03% [1] - The company's EPS was $2.31, significantly higher than the $1.68 reported in the same quarter last year, representing a surprise of 99.14% over the consensus estimate of $1.16 [1] Financial Performance - Revenue and EPS performance indicates a strong surprise against analyst expectations, with revenue surpassing estimates and EPS showing substantial growth [1] - The stock has returned -6.4% over the past month, underperforming the Zacks S&P 500 composite, which increased by 3.1% [3] Unit Sales and Net Sales - Recreational Vehicles unit sales in Europe were 12,873, below the estimated 13,647 [4] - North American Towable unit sales were 25,682, also below the estimate of 26,945 [4] - Total unit sales were 42,934, compared to the average estimate of 43,995 [4] - North American Motorized unit sales were 4,379, exceeding the estimate of 3,403 [4] - Net Sales for Recreational Vehicles in Europe were $923.05 million, above the estimate of $861.41 million, but down 2.2% year-over-year [4] - Total North American Recreational Vehicles net sales were $1.45 billion, slightly down 0.2% year-over-year, but above the estimate of $1.31 billion [4] - North American Towable net sales were $888.74 million, down 4.6% year-over-year, but above the estimate of $853.43 million [4] - Total Recreational Vehicles net sales were $2.37 billion, down 1% year-over-year, exceeding the estimate of $2.17 billion [4] - North American Motorized net sales were $557.41 million, up 7.8% year-over-year, surpassing the estimate of $455.49 million [4] - Intercompany eliminations were reported at $-67.44 million, worse than the estimate of $-57.19 million, but showed a year-over-year improvement of 14.9% [4] - Other net sales were $222.02 million, above the estimate of $201.27 million, with a year-over-year increase of 10.9% [4]

Financial Performance - THOR Industries reported net sales of $2.52 billion for the fourth quarter of fiscal 2025, a slight decrease of 0.4% compared to $2.53 billion in the same quarter of fiscal 2024 [1][4] - The company's gross profit for the fourth quarter was $370.9 million, down 7.6% from $401.3 million year-over-year, resulting in a gross profit margin of 14.7% [1][21] - Net income attributable to THOR increased by 39.7% to $125.8 million in the fourth quarter, compared to $90.0 million in the prior year [1][21] - Diluted earnings per share rose by 40.5% to $2.36, up from $1.68 in the same quarter last year [1][21] Segment Performance - North American Towable RVs segment net sales decreased by 4.6% to $888.7 million in the fourth quarter, with unit shipments down 10.1% [9][10] - The North American Motorized RVs segment saw a 7.8% increase in net sales to $557.4 million, driven by a 15.9% rise in unit shipments [10][11] - European RVs segment net sales fell by 2.2% to $923.1 million, impacted by a 14.1% decline in unit shipments [12] Operational Highlights - The company generated $577.9 million in cash from operations for the fiscal year, which was used to invest in the business, return capital to shareholders, and reduce debt [6][7] - THOR reduced total debt obligations by approximately $237.0 million during fiscal 2025 [6] - The company launched a strategic organizational restructuring plan aimed at optimizing its enterprise structure and strengthening its brand portfolio [6][7] Future Outlook - For fiscal 2026, THOR Industries provided guidance for consolidated net sales in the range of $9.0 billion to $9.5 billion, with diluted earnings per share projected between $3.75 and $4.25 [13][14] - The guidance assumes a low- to mid-single digit retail decline in North America while maintaining stable market share [14]

Core Insights - Thor Industries (THO) is expected to report quarterly earnings of $1.16 per share, reflecting a year-over-year decline of 31% [1] - Revenue projections stand at $2.31 billion, down 8.7% from the same quarter last year [1] - Analysts have adjusted the consensus EPS estimate upward by 30.9% over the past 30 days, indicating a reassessment of initial projections [1][2] Revenue and Sales Projections - The consensus estimate for 'Net Sales- Recreational Vehicles- North American Towable' is $853.43 million, indicating a decline of 8.4% year-over-year [4] - 'Net Sales- Total Recreational Vehicles' is projected to reach $2.17 billion, down 9.3% from the prior year [4] - 'Net Sales- Recreational Vehicles- North American Motorized' is expected to be $455.49 million, reflecting a 12% decrease from the previous year [5] - 'Net Sales- Other' is estimated at $201.27 million, suggesting a slight increase of 0.5% year-over-year [5] - 'Net Sales- Recreational Vehicles- European' is projected at $861.41 million, down 8.7% from the year-ago quarter [5] - Combined 'Net Sales- Recreational Vehicles- Total North America' is expected to be $1.31 billion, indicating a decline of 9.7% year-over-year [6] Units Sales Projections - 'Units sales - Recreational Vehicles - European' is estimated at 13,647, down from 14,982 in the same quarter last year [6] - 'Units sales - Recreational Vehicles - North American Towable' is projected to be 26,945, compared to 28,572 reported last year [7] - Total 'Units sales - Total' is expected to reach 43,995, down from 47,331 in the same quarter last year [7] - 'Units sales - Total Recreational Vehicles (Total North America)' is forecasted at 30,348, down from 32,349 in the same quarter last year [8] - 'Units sales - Recreational Vehicles - North American Motorized' is estimated at 3,403, compared to 3,777 reported last year [8] Profit Projections - 'Gross Profit- Recreational Vehicles- European' is expected to be $143.84 million, down from $176.14 million in the previous year [9] Stock Performance - Over the past month, shares of Thor Industries have returned -1.3%, while the Zacks S&P 500 composite has increased by 3% [10] - Currently, THO holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [10]

Core Viewpoint - Thor Industries (THO) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended July 2025, with the consensus outlook indicating potential impacts on the stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The earnings report is scheduled for release on September 24, and better-than-expected key numbers could lead to a stock price increase, while a miss may result in a decline [2]. - The consensus estimate for quarterly earnings is $1.16 per share, reflecting a year-over-year decrease of 31%, with revenues expected to be $2.31 billion, down 8.7% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 28.4% higher, indicating a reassessment by analysts of the company's earnings prospects [4]. - The Most Accurate Estimate for Thor Industries is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.43%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [9][10]. - Thor Industries currently holds a Zacks Rank of 3, which complicates predictions of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Thor Industries exceeded expectations by posting earnings of $2.77 per share against an expected $1.79, resulting in a surprise of +54.75% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - While Thor Industries does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

Group 1 - Thor Industries (THO) shares increased by 3.2% to close at $110.36, following a notable trading volume, contrasting with a 2% loss over the past four weeks [1] - The company has expanded its market presence through strategic acquisitions, including EHG and TiffinHomes, making it the world's largest RV manufacturer and enhancing its product portfolio [2] - The acquisition of Airxcel has improved the supply chain and diversified revenue streams, particularly in the aftermarket sector [2] Group 2 - Thor Industries is projected to report quarterly earnings of $1.16 per share, reflecting a year-over-year decline of 31%, with expected revenues of $2.31 billion, down 8.7% from the previous year [3] - The consensus EPS estimate for Thor Industries has been revised 28.4% higher in the last 30 days, indicating a potential for price appreciation [4] - The company holds a Zacks Rank of 3 (Hold), indicating a neutral outlook compared to other stocks in the same industry [5] Group 3 - Cavco (CVCO), a competitor in the same industry, closed 2.6% higher at $554.22, with a 9% return over the past month [5] - Cavco's consensus EPS estimate remains unchanged at $6.3, representing a 19.3% increase from the previous year [6]

Core Viewpoint - THOR Industries, Inc. will release its fiscal 2025 fourth quarter earnings on September 24, 2025, before the market opens [1]. Group 1: Earnings Release Information - The earnings release will be accompanied by a comprehensive question and answer document and a slide presentation available on the company's website [2]. - Interested parties can access the quarterly earnings documents at http://ir.thorindustries.com/ [2]. Group 2: Company Overview - THOR Industries is the sole owner of operating subsidiaries that collectively represent the world's largest manufacturer of recreational vehicles [3].

Core Viewpoint - Several companies are enhancing shareholder value through dividends, buybacks, and debt paydown, which can lower risk and potentially increase stock value [1][2]. Group 1: Thor Industries - Thor Industries announced a $400 million buyback program, representing approximately 8.1% of its market capitalization [2][3]. - The company has repurchased over 340,000 shares, spending over $29 million from June 6 to June 23, indicating a belief that its shares are undervalued [3]. - Thor Industries has a dividend yield of 2.2%, contributing to its overall yield generation strategy [3]. Group 2: Fair Isaac - Fair Isaac announced a $1 billion buyback program, which is about 2.2% of its market capitalization of approximately $45 billion [4][5]. - The company has increased its buyback spending to nearly $300 million per quarter over the last 12 months, suggesting a view that its shares are undervalued [5][6]. - As of July 3, Fair Isaac's stock was trading around 21% below its all-time high, with a consensus price target implying over 24% upside potential [6]. Group 3: Dana - Dana plans to reduce its debt significantly by using $2.4 billion from the sale of its off-highway business, targeting a $2 billion debt paydown, which equates to a 77% debt paydown yield [8][9]. - The company intends to allocate $1 billion for dividends and buybacks through 2027, representing over 38% of its market capitalization [9]. - Dana's current dividend yield is 2.2%, and it aims to utilize multiple pathways to generate shareholder value [9][10].

Core Points - THOR Industries, Inc. has re-authorized a share repurchase program allowing the company to buy back up to $400 million of its common stock, with the authorization set to expire on July 31, 2027 [1][2] - Since initiating its buyback program in December 2021, THOR has repurchased over 3.5 million shares, demonstrating its ability to generate cash even in a challenging RV market [2] - The company has resumed stock repurchases, acquiring over 340,000 shares since June 6, 2025, and plans to continue buying back shares as long as the market price does not reflect its long-term value [2] Company Overview - THOR Industries is the largest manufacturer of recreational vehicles globally, owning several operating companies [3]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $629.1 million, an increase of $45.1 million or 7.7% compared to Q2 2024, excluding the impact of the divested E and C transit bus business [24][25] - Consolidated adjusted EBITDA was $58.9 million, up from $37.5 million in Q2 2024, representing a 63.6% year-over-year increase when excluding the impact of the divested bus business [25][27] - The company repurchased approximately 2.9 million shares for $88 million during the quarter under a $250 million share repurchase authorization [20][39] Business Line Data and Key Metrics Changes - Specialty Vehicles segment sales increased by $16.5 million to $453.9 million, with a 12.2% increase when excluding the divested transit bus business [27][28] - Specialty Vehicles adjusted EBITDA increased by $24 million or 74.3% year-over-year, driven by higher unit production and manufacturing efficiencies [28][29] - Recreational Vehicle segment sales decreased by $4.4 million or 2.4% due to lower unit shipments amid soft market demand, but maintained a 6.2% adjusted EBITDA margin [32][33] Market Data and Key Metrics Changes - Specialty Vehicles segment backlog was $4.3 billion, reflecting strong demand for fire apparatus and a book-to-bill ratio of 1.1 in Q2 [29] - Recreational Vehicle segment backlog declined by 2% to $268 million, attributed to soft end market demand and dealer caution [35] - REV brand retail sales decreased by 10% year-over-year, compared to a 13% decline in the broader industry [33] Company Strategy and Development Direction - The company is focusing on operational excellence, investing in people and equipment, and product innovation to drive sustainable growth [8][21] - A strategic decision was made to exit the non-motorized travel trailer and truck camper product categories to concentrate on scalable operations with stronger competitive positioning [15][16] - The company plans to increase capital expenditures to enhance throughput and efficiency across its operations [21][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage tariff impacts and maintain updated financial guidance for the year [11][40] - The company anticipates continued growth in the Specialty Vehicles segment, with mid-teens revenue growth expected for the second half of the fiscal year [30][40] - Management noted that the demand for fire and ambulance products is returning to long-term trend levels, with expectations for normalized demand in the back half of the year [61] Other Important Information - The company celebrated the 50th anniversary of its ambulance group, highlighting its commitment to innovation and quality [12][13] - The company has maintained a strong cash flow profile, generating $117 million in cash from operating activities during the quarter [38][42] - The company updated its full-year fiscal 2025 guidance, raising consolidated top-line expectations to a range of $2.35 billion to $2.45 billion [40][41] Q&A Session Summary Question: What is the timeframe for tariff impacts to wash through the backlog and output? - Management expects the RV tariff impact to primarily affect the back half of fiscal 2025, with some potential carryover into early 2026 [44][46] Question: What is the expected return on the $20 million investment in the Brandon facility? - Management indicated that the investment aims to reduce lead times and increase production, but specific return metrics were not disclosed [47][48] Question: How does the sale of Lance impact long-term EBITDA goals? - Management clarified that Lance represents less than 10% of total sales for recreation, thus having no material impact on the 2027 targets [49] Question: Will dealer assistance continue to increase in the second half? - Management expects a softer second half due to consumer confidence risks and the impact of tariffs, but dealer inventory is healthier overall [54][56] Question: What is the demand outlook for the S-one 80 program? - Demand for the S-one 80 program remains strong, with orders increasing across various brands [58][59] Question: What is the current state of wholesale versus retail demand in recreational vehicles? - Retail shipments showed a sequential increase for the first time in 28 months, indicating positive signs, while wholesale orders are expected to improve due to healthier dealer inventory [68][70]