THOR Industries, Inc. (NYSE: THO) reported financial results on September 22, 2026 for the fourth quarter and full fiscal year ended July 31, 2026. Fourth-quarter net sales fell 8.4% to $2.31 billion from $2.52 billion a year earlier, while net income attributable to THOR dropped 67.5% to $40.8 million from $125.8 million.
For the full fiscal year, net sales rose 0.3% to $9.61 billion from $9.58 billion, exceeding the high end of the company's prior guidance, according to the earnings release. Full-year net income attributable to THOR fell 31.3% to $177.5 million from $258.6 million, as gross margin narrowed to 12.6% from 14.0%.
#Fourth-Quarter Net Income Falls 67.5% as Gross Margin Narrows
Gross profit for the fourth quarter fell 23.0% to $285.6 million from $370.9 million, with gross margin contracting 230 basis points to 12.4% from 14.7%, the company reported.
Diluted earnings per share fell to $0.78 from $2.36, a 66.9% decline. Fourth-quarter EBITDA dropped 42.2% to $130 million, while adjusted EBITDA fell 37.1% to $131.7 million.
"Our fiscal 2026 proved to be more challenging than we anticipated at the outset of the year due to the headwinds impacting the RV industry," said Bob Martin, President and Chief Executive Officer, in the earnings release.
#North American Towable Sales Drop 22.7% as Europe Grows 5%
Net sales in the North American Towable segment fell 22.7% to $687.3 million in the fourth quarter, driven by a 19.7% decline in unit shipments, including a 34.7% drop in fifth wheel shipments, the company said.
Segment gross margin narrowed 280 basis points to 10.5% from 13.3% a year earlier, reflecting lower sales volumes, an unfavorable product mix and increased promotional activity, the company said.
The Towable segment's order backlog rose to $916.6 million as of July 31, 2026, up 74.6% from $525 million a year earlier, according to the release.
Net sales in the North American Motorized segment fell 10.4% to $499.3 million in the fourth quarter, though a shift toward Class B and Class C product lines lifted the average net price per unit by 2.7%. For the full fiscal year, Motorized segment net sales rose 12.8% to $2.46 billion.
European segment net sales rose 5.0% to $969.2 million in the fourth quarter and increased 9.0% to $3.3 billion for the full fiscal year, up 3.1% on a constant-currency basis, the company said.
"We managed production closely against global independent dealer inventory levels, which have declined 11.5% as of July 31, 2026 compared to July 31, 2025," said Todd Woelfer, Senior Vice President and Chief Operating Officer, in the earnings release.
Woelfer added that the North American Motorized and European segments both gained market share for the six months ended June 30, 2026, with the North American Motorized segment up 130 basis points compared with the prior-year period.
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#Thor Cuts Debt, Buys Back Shares, and Delays 2027 Guidance
"During fiscal 2026, we reduced debt by $59.7 million and repurchased shares of $115.1 million, of which $34.3 million was repurchased during the fiscal 2026 fourth quarter," said Colleen Zuhl, Senior Vice President and Chief Financial Officer, in the earnings release.
THOR said it expects its strategic initiatives and restructuring activities to drive costs out of the business and improve its earnings profile by more than $100 million annually once fully implemented.
The company also referenced recently announced leadership changes to its North American RV operating model as part of that effort, without providing further detail in the release.
THOR said it has not yet issued financial guidance for fiscal 2027, citing two upcoming industry events, the Hershey, Pennsylvania show and the Elkhart, Indiana Open House, held in the second half of September. The company said it plans to provide fiscal 2027 guidance later this fall.
THOR Industries is the sole owner of operating companies that, combined, make up the world's largest manufacturer of recreational vehicles, according to the company. THOR's brands are sold through a network of independent dealers across North America and Europe.
THOR's results and outlook remain subject to risks including inflation, interest rates, tariffs, and raw-material and chassis supply constraints, among other factors the company describes in its regulatory filings, according to the release.
Woelfer said THOR expects a relatively flat retail environment in fiscal 2027 compared with fiscal 2026, with many of the same industry headwinds persisting in the near term. He said continued pressure from interest rates, fuel costs and inflation on consumer spending remain key risks to that outlook.