Thor Industries (THO) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales declined 9.7% year-over-year to $10.04 billion, with Q4 net sales down 7.4% to $2.53 billion and 186,908 unit shipments.

• Gross profit margin improved to 15.8% in Q4, up 140 bps year-over-year, aided by favorable LIFO inventory adjustments and lower warranty costs; full-year gross margin was 14.5%.

• Diluted EPS for Q4 was $1.68 (flat year-over-year); full-year EPS fell 28.9% to $4.94, exceeding recent guidance.

• Cash from operations totaled $545.5 million for the year, down 44.4% from the prior year.

• Management emphasized disciplined production, operational efficiency, and strong liquidity to navigate macroeconomic headwinds.

Financial highlights

• Full-year net sales declined 9.7% to $10.04 billion; Q4 net sales were $2.53 billion.

• Gross profit margin improved to 15.8% in Q4 and 14.5% for the year.

• Diluted EPS dropped 28.9% year-over-year to $4.94.

• Cash from operations was $545.5 million, down from $981.6 million in FY23.

• Share repurchases totaled $68.4 million for 720,997 shares in FY24, including 266,367 shares for $25.4 million in Q4.

Outlook and guidance

• Fiscal 2025 guidance: net sales of $9.0–$9.8 billion, gross margin of 14.7–15.2%, and diluted EPS of $4.00–$5.00.

• North American wholesale shipments expected between 330,000–345,000 units in fiscal 2025.

• European segment net sales anticipated to decline in fiscal 2025 after record 2024 sales.

• Management expects continued market headwinds in North America and Europe, with discounting elevated in Motorized and moderate in Towable segments.

• Expects stronger retail environment in late calendar 2025 and early FY2026.