THOR Industries Reports Decrease in Net Income and Sales for Nine Months Ended April 30, 2025

THOR Industries, Inc. reported a consolidated net income of $129.97 million for the nine months ended April 30, 2025, a decrease from $173.94 million in the same period last year. The company's net sales for the nine-month period fell to $7.06 billion, down 6.0% from $7.51 billion in the prior year. The decline in revenue was attributed to a significant drop in sales from the North American Motorized segment, which saw a 16.1% decrease, while the North American Towable segment experienced a modest increase of 5.4%. The European segment also faced challenges, with net sales declining by 13.2%.

In terms of operational metrics, THOR's North American RV backlog decreased by 20.6% to $2.86 billion as of April 30, 2025, compared to $3.60 billion a year earlier. This decline was primarily driven by a reduction in both North American Towable and European backlogs. The company reported a slight increase in cash and cash equivalents, totaling $508.32 million, up from $501.32 million at the end of July 2024. The increase in cash was largely due to improved cash flows from operating activities, which rose to $319.25 million from $207.53 million in the previous year.

Strategically, THOR has focused on enhancing its product offerings and expanding its market presence. The company reported a 9.1% increase in net sales for the North American Towable segment, driven by a 5.5% increase in unit shipments, particularly in the fifth wheel category. However, the North American Motorized segment faced challenges, with a 10.9% decrease in unit shipments, reflecting a softening in dealer and consumer demand. The company continues to monitor market conditions closely, particularly in light of inflationary pressures and changing consumer preferences.

THOR's selling, general, and administrative expenses increased by 3.0% to $684.69 million for the nine months ended April 30, 2025, reflecting higher costs associated with increased sales activity and incentive compensation. The effective income tax rate for the period was 15.0%, a decrease from 21.6% in the prior year, influenced by the jurisdictional mix of earnings and certain tax provision adjustments. Looking ahead, THOR Industries remains cautiously optimistic about long-term growth prospects, despite ongoing challenges in the RV market, including inflation and supply chain constraints. The company plans to continue investing in its operations and product development to capitalize on future opportunities.