Tourism Holdings Limited (THL) reported on October 24 that while fiscal 2025 (FY25) proved difficult amid weakened global demand for recreational vehicles, the company expects a return to net profit after tax (NPAT) growth in fiscal 2026 (FY26), supported by international tourism recovery and cost-reduction initiatives.
Chair Cathy Quinn said FY25 reflected “a very challenging last 12 months on a global basis,” as subdued consumer demand for RV purchases and macroeconomic uncertainty weighed on the sector.
THL posted an underlying net profit after tax of $28.7 million, down 45 percent from the prior year, and a statutory net loss after tax of $25.8 million due to one-off items.
The company’s New Zealand Rentals & Sales and Tourism divisions achieved record EBIT results, offsetting weaker performance in its Australian retail dealerships and North American sales.
Chief Executive Officer Grant Webster said the return on funds employed fell to 6.9 percent—below the 15 percent target—but pointed to “a clear sense of direction and growing confidence in what lies ahead.”
Both Quinn and Webster noted that governments in Canada, Australia, and New Zealand are supporting tourism investment, a trend expected to strengthen RV rental demand.
THL’s fleet growth in those markets is tracking slightly behind rebounding international visitor arrivals, providing room to increase utilization before expanding inventory further.
The company also highlighted completion of a multi-year digital transformation program, including global rollout of fleet, HR, and asset-management systems, and continued progress in health and safety initiatives that cut lost-time injury frequency by 43 percent.
Strategically, THL is focusing on four areas: the UK & Ireland division, the Australian retail business, Australasian manufacturing, and North America.
Recent actions include exiting two standalone dealerships in Australia and advancing a North American synergy project delayed by tariffs, now expected to drive profitability improvements as tariff conditions ease.
Looking ahead, the company said FY26 will be a “transitional year,” with growth anticipated in New Zealand Rentals & Sales, Australian Rentals, Canada, UK/Ireland, and Tourism, though likely offset by declines in the U.S., Australian retail, and manufacturing operations.
No FY26 profit guidance was issued, but management expects NPAT growth to resume as strategic measures take effect.
What it Means for RV Manufacturers and Dealers
For RV manufacturers, THL’s comments underscore how soft retail demand has curtailed production volumes, particularly in North America and Australia.
The company’s efforts to consolidate manufacturing under shared leadership and align capital spending suggest suppliers should prepare for tighter order pacing until consumer sentiment improves.
Dealers, meanwhile, may face continued caution in showroom traffic as THL rationalizes retail operations and releases underperforming assets.
However, the projected rebound in rentals—driven by tourism recovery—signals potential lift in used-RV inventory turnover and service-related opportunities by FY27.
As THL integrates its manufacturing and retail platforms, closer coordination with OEM partners on model delivery timelines and tariff exposure will remain key to stabilizing supply chains through the next financial year.