Thor Industries reported sales and profit gains in its fiscal third quarter from the fiscal third quarter of 2024.
The RV manufacturer said the results exceeded expectations but the company expected challenges in the next six months.
President and CEO Bob Martin said, “The successful execution of key strategic initiatives, in particular placing further emphasis on driving down our cost profile, led to improved margins in an environment where we saw modest year-over-year top-line improvement.”
Thor Industries reported success in lowering average sales prices (ASPs) by shifting its product mix to more affordable RVs and managing the company’s bills of materials. Thor’s North American towable ASPs were 5.6% lower through the first nine months of fiscal 2025 than they were during the first nine months of fiscal 2024. Among motorized RVs, ASPs were down 1.6% over the same period.
The company said its strategic actions with dealers have produced an optimal product mix and increased Thor brands’ share of lot inventory. Thor reported 91,800 RVs on dealer lots as of April 30, up from 86,200 RVs as of Jan. 31. Because of the increased lot share, Thor said its brands are expected to make market share gains as the RVs are sold.
The manufacturer’s caution is derived from lower consumer confidence reports, although Thor cited an increase in May’s consumer confidence readings as a potential tailwind. The company forecast encouraging retail trends in the second half of fiscal 2025 but said the retail improvement in the third quarter was not as strong as earlier anticipated.
Martin said economic uncertainty has led to lower retail sales, and when the uncertainty is resolved, the company will see improved consumer confidence and a strong retail environment.
“We expect the fourth quarter of our fiscal 2025 and the first quarter of our fiscal 2026 to be challenging,” he said. “In the meantime, we will continue to execute the strategies necessary to maximize our performance in the given market conditions.”
Tariffs will effect the company. Thor Industries said cost increases are expected for a limited number of imported components and distributed, as well as on certain imported chassis. At current tariff rates, Thor said efforts from suppliers, dealers and manufacturers will largely mitigate tariffs’ effects on ASPs.
“The mitigation strategies we have in place,” the company said, “and the coordinated efforts of the RV value chain will allow us to remain committed to delivering high-quality RVs at desirable price points.”
Senior Vice President and Chief Operating Officer Todd Woelfer said integrating Heartland’s operations into Jayco created significant opportunities. He said the realignment will drive meaningful savings.
Thor also updated its work with RV Partfinder on its parts search tool. The company said an announcement on a broader RV Partfinder rollout will be made during Elkhart Extravaganza.
