THOR Industries posted higher fourth-quarter profit and better-than-expected sales, driven in part by more affordable private label products in its motorized RV segment, but forecast fiscal 2026 sales below analysts’ expectations amid a challenging macroeconomic environment according to an article by The Wall Street Journal.
“While consumer spending and wage growth have been resilient, there is mounting household debt and signs that the labor market is weakening amidst a backdrop of falling interest rates,” the company said. “Moreover, consumer sentiment and inflation expectations remain volatile.”
For fiscal 2026, THOR guided sales of $9 billion to $9.5 billion and earnings of $3.75 to $4.25 per share, below analyst forecasts of $9.63 billion in sales and $4.12 per share in earnings. Shares rose 4.5% to $106.89, bringing the year-to-date gain to 12%.
THOR cited affordability pressures as a major challenge for consumers, compounded by tariffs. “Affordability remains one of the most significant challenges that we face in the marketplace,” the company said.
“Our operating companies are working tirelessly to prevent any incremental costs from being passed on to the consumer, but in some cases it is unavoidable,” The company added.
The company noted that its more affordable private label motorized RV products have been resonating with buyers, helping to offset some headwinds.
While North American towable RV sales declined 4.6%, motorized RV sales rose 7.8%.
“We believe strongly in our ability to continually identify opportunities that address affordability so as to keep customers engaged with the RV market and foster future sales growth,” THOR said.
THOR reported fourth-quarter net income of $125.8 million, or $2.36 per share, up from $90 million, or $1.68 per share, a year earlier.
Analysts had expected $1.23 per share. Revenue was $2.52 billion, down slightly from $2.53 billion a year ago, and above Wall Street expectations of $2.32 billion.
The results highlight the resilience of the motorized RV segment and the importance of affordability in maintaining consumer interest, offering insights into trends that could shape the broader RV market in North America in 2026.