RV maker Thor Industries beats Q4 sales, EPS estimates

Overview

• Thor Industries fiscal Q4 net sales of $2.52 bln beat analyst expectations

• Adjusted EBITDA for fiscal Q4 was $209.5 mln, reflecting strategic initiatives

• Net income rose 39.7% yr/yr to $125.8 mln, beating analyst estimates

Outlook

• Company expects fiscal 2026 net sales of $9.0 bln to $9.5 bln

• Thor Industries projects fiscal 2026 EPS between $3.75 and $4.25

• Company anticipates low- to mid-single digit retail decline in North America

Result Drivers

• MARKET SHARE GAINS - North American Towable and Motorized segments saw market share increase as strategic initiatives gained traction

• INVENTORY MANAGEMENT - Dealer inventory turns improved, positioning the channel well for the upcoming fiscal year

• COST MANAGEMENT - Gross profit margin decreased by 110 bps due to increased product costs and promotional activities, partially offset by cost savings initiatives

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy."

• Wall Street's median 12-month price target for Thor Industries Inc is $93.00, about 9.9% below its September 23 closing price of $102.25

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNXbkFYFq