Based in Elkhart, Indiana, Thor Industries manufactures Class A, Class B, and Class C motor homes along with travel trailers and fifth wheel towables across over 30 brands. Through the acquisition of Erwin Hymer in 2019, the company expanded its geographic footprint and now produces various motorized and towable recreational vehicles for Europe, including motorcaravans, campervans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts through the acquisition of Airxcel in 2021, however, this is still a nascent part of the business as it accounts for less than 10% of total sales. In fiscal 2023, the company wholesaled 187,015 units and generated over $11.1 billion in revenue.
Performance and Challenges
Thor Industries Inc (THO, Financial) reported net sales of $2.53 billion for the fourth quarter of fiscal 2024, a 7.4% decrease compared to the same period in fiscal 2023. The company faced a challenging retail environment, which impacted its sales performance. Despite the decline in net sales, the company managed to improve its gross profit margin to 15.8%, up from 14.4% in the prior year, aided by favorable LIFO inventory adjustments and improved warranty cost percentages.
Financial Achievements
Thor Industries Inc (THO, Financial) achieved a gross profit of $401.3 million for the fourth quarter, a 1.8% increase from the previous year. The company's net income attributable to Thor Industries was $90.0 million, nearly flat compared to $90.3 million in the prior year. Diluted earnings per share (EPS) remained steady at $1.68, matching analyst estimates. For the full fiscal year 2024, net sales were $10.04 billion, a 9.7% decrease from fiscal 2023, while diluted EPS was $4.94, down 28.9% from the previous year but ahead of the company's most recent guidance.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | Change | FY 2024 | FY 2023 | Change |
|---|---|---|---|---|---|---|
| Net Sales | $2,534,167 | $2,738,066 | (7.4)% | $10,043,408 | $11,121,605 | (9.7)% |
| Gross Profit | $401,331 | $394,305 | 1.8% | $1,451,962 | $1,596,353 | (9.0)% |
| Gross Profit Margin % | 15.8% | 14.4% | +140 bps | 14.5% | 14.4% | +10 bps |
| Net Income | $90,015 | $90,287 | (0.3)% | $265,308 | $374,271 | (29.1)% |
| Diluted EPS | $1.68 | $1.68 | 0% | $4.94 | $6.95 | (28.9)% |
| Cash Flows from Operations | $338,016 | $507,513 | (33.4)% | $545,548 | $981,633 | (44.4)% |
Segment Performance
North American Towable RVs saw a slight increase in net sales by 0.1% to $931.9 million, driven by a 16.3% increase in unit shipments. However, the segment's income before income taxes decreased by 8.5% to $50.9 million due to higher selling, general, and administrative costs.
North American Motorized RVs experienced a 21.2% decline in net sales to $517.3 million, primarily due to a 25.1% reduction in unit shipments. Despite this, the segment's gross profit margin improved to 12.8%, up from 8.6% in the prior year, driven by lower material, labor, and warranty costs.
European RVs reported a 7.4% decrease in net sales to $943.4 million, with unit shipments down 14.6%. The segment's gross profit margin slightly decreased to 18.7% from 19.0% in the prior year, primarily due to increased sales discounting.
Management Commentary
"Our teams delivered solid performances as we continue to navigate the persistent challenges in the industry’s retail environment. We realized strong margin performance relative to the current market conditions as our teams executed on strategic initiatives designed to maximize our operational efficiency," said Bob Martin, President and CEO of Thor Industries.
Analysis
Thor Industries Inc (THO, Financial) demonstrated resilience in a challenging market environment by maintaining steady earnings per share and improving gross profit margins despite a decline in net sales. The company's strategic initiatives, including inventory management and
Explore the complete 8-K earnings release (here) from Thor Industries Inc for further details.
