THOR Industries reported fiscal 2026 third-quarter net sales of $2.78 billion and lowered its full-year earnings outlook, citing prolonged geopolitical and macroeconomic pressures that continue to weigh on consumer confidence, dealer ordering patterns and RV demand.
The company announced June 3 that net income attributable to THOR Industries totaled $97.2 million for the quarter ended April 30, while EBITDA reached $209.1 million.
Adjusted EBITDA was $183.6 million after excluding certain nonrecurring items, including strategic reorganization costs, investment-related gains and gains from real estate transactions.
THOR revised its fiscal 2026 diluted earnings-per-share guidance to a range of $3.30 to $3.80, down from its previous forecast of $3.75 to $4.25. The company maintained its consolidated net sales guidance of $9 billion to $9.5 billion but now expects declining gross margins at the midpoint of its forecast, compared with its previous expectation of stable margins.
According to a press release, President and Chief Executive Officer Bob Martin said the impact of geopolitical developments and broader economic uncertainty during the quarter exceeded industry expectations because of their prolonged effect on consumer sentiment and material costs.
“In particular, our North American Towable segment has confronted both suppressed volumes due to strained consumer sentiment and rising material costs brought on by tariff and inflationary pressures,” Martin said.
Despite challenges in the Towable segment, THOR reported growth in its North American Motorized and European operations. Motorized net sales increased 7.7% compared with the prior-year period, while European net sales rose 3.6% on a constant-currency basis.
Martin said those results demonstrated continued consumer interest in recreational vehicles despite difficult market conditions.
He also noted that the company’s strategic realignment of its North American RV operations is underway, with management assessments largely complete and implementation initiatives ready to begin.
Senior Vice President and Chief Operating Officer Todd Woelfer said low consumer confidence, cautious dealer ordering patterns and ongoing tariff-related and inflationary cost pressures continue to affect the broader RV market.
“With three quarters of fiscal 2026 now complete, we have meaningful visibility into the full-year trajectory of our financial performance,” Woelfer said.
The company reported that its North American Motorized segment expanded retail market share to 47.8% for the three months ended March 31, while its European segment increased retail market share to 24.4% during the same period.
THOR expects a mid-teens retail decline in North America during fiscal 2026, compared with its previous assumption of a low- to mid-single-digit decline. The company also forecasts a low-single-digit market share decline in North American Towables and a low-single-digit market share gain in North American Motorized products.
During the quarter, THOR repurchased $50.5 million of shares and paid $27.1 million in dividends. Senior Vice President and Chief Financial Officer Colleen Zuhl said the company took advantage of depressed market valuations to repurchase stock while maintaining a focus on liquidity and balance sheet strength.
Zuhl said THOR remains focused on managing working capital, protecting margins through operational efficiencies and production discipline, and continuing to invest in strategic initiatives despite challenging economic conditions.