Thor Industries (THO) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY26/Fiscal Q2 2026 rose 5.3% year-over-year to $2.13 billion, with six-month sales up 8.5% to $4.51 billion, driven by strong North American Motorized and European segment growth, offsetting declines in Towable.

• Net income attributable to shareholders was $17.8 million for the quarter, reversing a prior year loss, aided by real estate transaction gains.

• Adjusted EBITDA for Q2 FY26 was $98.1 million, up 12.7% year-over-year.

• Strategic realignment of North American RV operations announced post-quarter, forming two RV groups to enhance efficiency and collaboration.

• European segment faced margin pressure due to restructuring costs and a price-competitive market, but remains aligned with internal plans.

Financial highlights

• Q2 FY26 net sales: $2.13 billion (+5.3% YoY); FYTD net sales: $4.51 billion (+8.5% YoY).

• Gross profit margin for Q2 FY26 was 11.8%, down 30 bps YoY; six-month margin was flat at 12.7%.

• Net income for Q2 FY26 was $17.8 million, compared to a loss of $0.6 million in Q2 FY25.

• Adjusted EBITDA for Q2 FY26 was $98.1 million, up 12.7% YoY.

• Debt reduced by $47.1 million during the quarter; $25.2 million in share repurchases and $54.8 million in dividends paid.

Outlook and guidance

• FY26 consolidated net sales guidance: $9.0B–$9.5B; diluted EPS: $3.75–$4.25; gross margin expected to remain stable at midpoint.

• Guidance assumes low- to mid-single-digit retail decline in North America with stable market share and no material impact from strategic realignment.

• Management expects continued near-term challenges from inflation, interest rates, and dealer inventory management, but remains optimistic about long-term industry growth.

• European outlook is stable with ongoing price pressure, but long-term prospects remain positive due to demographic trends and lifestyle shifts.

• Tax rate projected at 24%–26% excluding discrete items.