Thor Industries (THO) Stock Forecast & Price Target

Thor Industries has demonstrated strong financial performance, achieving revenues of $2.39 billion in 1Q26, reflecting an 11.5% year-over-year increase, supported by improved operating margins which rose by 110 basis points to 1.6%. The company's Class C segment showcased robust growth with revenues up 40.5% year-over-year, and unit sales increasing by 41%, while the Class B segment also posted a solid increase in revenues of 24.8%. Additionally, the segment backlog saw a significant rise of 29.3% year-over-year to $1,005 million, indicating strong future demand for Thor's products.

Thor Industries reported a decline in key financial metrics, reflecting a challenging business environment, with the European segment gross profit decreasing 340 basis points year-over-year to 11.9%, attributed to a higher mix of lower-margin products and increased promotional activity along with warranty costs. Additionally, the company experienced a significant decrease in travel trailer revenues, which fell 16.0% year-over-year to $506.0 million, alongside unit sales declining 21.8%. Furthermore, the overall segment backlog decreased by 29.7% year-over-year to $656.0 million, indicating weakened demand in the recreational vehicle market, as dealer inventory also decreased by 6.5% year-over-year.