Thor Industries (THO) Stock Forecast & Price Target

Thor Industries reported significant improvements in its financial performance, highlighted by a 330 basis point year-over-year increase in segment EBT margin to 3.4% and a notable 370 basis point rise in segment gross profit to 11.1%, driven by higher net sales and cost-saving initiatives. The company’s backlog exhibited strong growth, increasing by 28.4% year-over-year to $1,073.8 million, demonstrating robust demand for its products. Additionally, the North American Towables segment experienced a 13.3% year-over-year sales increase to $828.3 million, reflecting the company's ability to benefit from volume increases and capitalize on its diverse product portfolio.

Thor Industries experienced a significant decline in financial performance as demonstrated by a 19.9% drop in Adjusted EBITDA to $87.0 million in 2Q25, alongside a troubling gross profit decline of 280 basis points in the North American Motorized segment to only 7.8%, attributable to reduced sales volume and increased discounting. Furthermore, the company has cut its FY25 guidance, projecting an Adjusted EPS between $3.30 and $4.00, reflecting challenges in net sales and rising overhead costs particularly within its Motorized and European segments. With campervan and Class B revenues decreasing 32.2% and 19.1% year-over-year, respectively, and unit sales falling significantly, Thor Industries faces a precarious market situation that could hinder future growth.