Thor Industries Inc. (NYSE:THO) delivered better-than-expected second-quarter results on Tuesday, although its full-year guidance came in below Wall Street projections, sending shares down 0.46% in after-hours trading.
For the quarter ended January 31, the recreational vehicle maker reported adjusted earnings per share of $0.34, well above the analyst consensus of $0.04.
Revenue totaled $2.13 billion, exceeding expectations of $1.96 billion and rising 5.3% from $2.02 billion in the same period a year ago.
Despite the earnings beat, Thor maintained its fiscal 2026 outlook, which fell short of market expectations. The company projected full-year diluted EPS of $3.75 to $4.25, compared with the consensus estimate of $4.26. The midpoint of $4.00 is roughly 6% below analyst forecasts.
Revenue guidance of $9.0 billion to $9.5 billion also lagged the $9.63 billion consensus, with the midpoint of $9.25 billion about 4% under expectations.
“Our fiscal second quarter results reflect continued execution in line with our expectations in a challenging retail environment,” stated Bob Martin, President and CEO. “Recent geopolitical events have clouded our outlook, though, and have created too much short-term uncertainty for us to raise our full-year guidance at this time.”
Performance varied across segments. The North American Motorized division posted a 29.3% jump in revenue to $577.1 million, with gross margin improving 170 basis points to 9.5%. In contrast, the North American Towable segment saw revenue decline 14.2% to $710.5 million, as unit shipments fell 23%.
European RV sales increased 11.8% to $684.5 million, but gross margin narrowed by 220 basis points to 11.0%, reflecting higher warranty costs and product mix pressures.
Adjusted EBITDA rose 12.7% year over year to $98.1 million. During the quarter, Thor reduced debt by approximately $47.1 million and returned $25.2 million to shareholders through share repurchases.