Thor Industries (THO) Stock Forecast & Price Target

Thor Industries has demonstrated a robust financial performance with a revenue increase of 11.5% year-over-year, totaling $2.39 billion for the period, alongside a notable rise in operating margin by 110 basis points to 1.6%. The company's adjusted EBITDA for the first quarter of fiscal 2026 surged by 21.5% to $131 million, reflecting effective sales growth and efficiency initiatives. Further supporting its positive outlook, segment backlog grew significantly by 29.3% to $1.005 billion, indicating strong future demand across its product lines, including Class C and Class B motor homes, which saw substantial revenue and unit sales expansions.

Thor Industries experienced a significant decline in various segments, with European gross profit decreasing 340 basis points year-over-year to 11.9%, largely due to a higher mix of lower-margin products and increased promotional activities. Revenues from travel trailers fell by 16.0% year-over-year to $506.0 million, with unit sales down 21.8% despite a rise in average selling prices, indicating potential challenges in demand and pricing pressures. Furthermore, the overall segment backlog shrank by 29.7% year-over-year to $656.0 million, coupled with a decrease in dealer inventory, reflecting ongoing challenges in sales performance and market conditions.