Thor Industries (THO) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales were $2.78 billion, down 3.9% year-over-year, with net income at $97.2 million and diluted EPS at $1.86, reflecting a 28.1% decline; EBITDA was $209.1 million.

• North American Towable sales dropped 24.6%, while Motorized rose 7.7% and European increased 11.8%; Towable segment faced significant margin and backlog declines.

• Gross profit margin contracted to 12.8% from 15.3% due to unfavorable mix and higher material costs.

• Strategic realignment of North American RV operations is underway, with brand and operational initiatives progressing.

• $50.5 million in share repurchases and $27.1 million in dividends were returned to shareholders during the quarter.

Financial highlights

• Nine-month net sales rose 3.4% to $7.3 billion, but gross profit margin fell to 12.7%; net income for the period was $136.7 million.

• Operating cash flow for the nine months was $77 million, down from $319 million prior year, mainly due to higher working capital needs.

• Cash and equivalents at quarter-end were $372 million, with total liquidity of $1.37 billion and outstanding debt of $883 million.

• Quarterly EPS was $1.86, down from $2.53, and adjusted EBITDA for Q3 was $183.6 million.

• Q3 EBITDA margin was 7.5%; adjusted EBITDA margin was 6.6%.

Outlook and guidance

• FY26 consolidated net sales guidance is $9.0–$9.5 billion, with diluted EPS expected between $3.30–$3.80.

• Gross margin is expected to decline at midpoint; tax rate guidance raised to 26–28%.

• Assumes mid-teens retail decline in North America and low-single-digit market share changes in segments.

• Management expects continued macroeconomic and consumer confidence pressures, but remains optimistic for long-term growth.

• North American RV wholesale shipments for 2026 are forecasted to decline 8.2% year-over-year.