Thor Backlog Soars, Profits Quadruple

Thor Industries logo

Thor Industries reported record fiscal second quarter financial results, including profits which more than quadrupled and a North American towable backlog that is five times what it was one year ago.

Thor said it was taking steps to address its record backlog, which totals $10.81 billion as of Jan. 31, 2021. The North American backlog share is $8.17 billion, up 372 percent from Jan. 30, 2020.

In the North American total, towable backlog accounts for more than $5.2 billion, a 454 percent increase from one year earlier.

“We are aggressively working to meet this demand by selectively and strategically expanding production capacity at numerous plants by reconfiguring them or adding additional production lines and the requisite inventory while managing through temporary supply chain limitations,” Thor President and CEO Bob Martin said. “In addition, we have increased production levels across the vast majority of our plants. We are focused on balancing volume with quality output and being mindful not to over expand our production capabilities.”

Thompson Research Group Analyst Kathryn I. Thompson said backlogs remained Thor’s quarterly theme. The overall backlog topped the previous quarter’s $8.9 billion record level.

“TRG RV dealer contacts share with us that the overall supply chain issues have persisted,” Thompson said in a note to clients, “although (Thor) is not shipping out units without key parts (i.e., microwaves, seat cushion foam, etc.). While not realized yet, the impact from the (Texas) freeze will impact the supply chain (chemicals and petro-based products), primarily impacting (the fiscal third quarter).”

Thor’s bottom line continued to soar as the company reported quarterly profits totaling $132.5 million, more than four times the $28.7 million recorded in 2020’s fiscal second quarter, equaling a 362 percent increase. That is nearly three times the 122.8 percent profit increase Thor registered in the first quarter.

Thor also addressed dealer inventories and market demand, saying inventories remained at historically low levels in North America, while demand remains very high, “such that our recent deliveries to dealers are being sold at retail very quickly and are not yet being used to restock dealer lots.”

“We expect the restocking cycle may take a number of quarters to complete,” Thor stated. “In the longer-term, which we define as late calendar 2022 and beyond, we expect to get back to a more normal ordering cycle where dealers order to replenish sold stock.”

Thor reported its U.S. towable market share totaled 41 percent in 2020, according to Statistical Surveys Inc., down from 44.3 percent in 2019. Motorized market share rose to 38.4 percent in 2020 from 36.9 percent a year earlier.

RV News magazine spread
If you are employed in the RV industry and not a member of the trade media, Subscribe for Free:
  • Daily business news on the RV industry and the companies and people that encompass it
  • Monthly printed and/or digital magazine filled with in-depth articles to increase profit margins
  • Statistics, data and other RV business trade information
Scroll to Top