Thor Industries Inc.

06/04/2025 | Press release | Distributed by Public on 06/04/2025 04:34

Quarterly Report for Quarter Ending April 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless otherwise indicated, all U.S. Dollar and Euro amounts are presented in thousands except share and per share data.
Forward-Looking Statements
This report includes certain statements that are "forward-looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made based on management's current expectations and beliefs regarding future and anticipated developments and their effects upon THOR, and inherently involve uncertainties and risks. These forward-looking statements are not a guarantee of future performance. We cannot assure you that actual results will not differ materially from our expectations. Factors which could cause materially different results include, among others:
•the impact of inflation on the cost of our products as well as on general consumer demand;
•the effect of raw material and commodity price fluctuations, including the impact of tariffs, and/or raw material, commodity or chassis supply constraints;
•the impact of war, military conflict, terrorism and/or cyber-attacks, including state-sponsored or ransom attacks;
•the impact of sudden or significant adverse changes in the cost and/or availability of energy or fuel, including those caused by geopolitical events, on our costs of operation, on raw material prices, on our suppliers, on our independent dealers or on retail customers;
•the dependence on a small group of suppliers for certain components used in production, including chassis;
•interest rates and interest rate fluctuations and their potential impact on the general economy and, specifically, on our independent dealers and consumers and our profitability;
•the ability to ramp production up or down quickly in response to rapid changes in demand or market share while also managing associated costs, including labor-related costs and production capacity costs;
•the level and magnitude of warranty and recall claims incurred;
•the ability of our suppliers to financially support any defects in their products;
•the financial health of our independent dealers and their ability to successfully manage through various economic conditions;
•legislative, regulatory and tax law and/or policy developments including their potential impact on our independent dealers, retail customers or on our suppliers;
•the costs of compliance with governmental regulation;
•the impact of an adverse outcome or conclusion related to current or future litigation or regulatory audits or investigations;
•public perception of and the costs related to environmental, social and governance matters;
•legal and compliance issues including those that may arise in conjunction with recently completed transactions;
•the level of consumer confidence and the level of discretionary consumer spending;
•the impact of exchange rate fluctuations;
•restrictive lending practices which could negatively impact our independent dealers and/or retail consumers;
•management changes;
•the success of new and existing products and services;
•the ability to maintain strong brands and develop innovative products that meet consumer demands;
•changes in consumer preferences;
•the risks associated with acquisitions, including: the pace and successful closing of an acquisition, the integration and financial impact thereof, the level of achievement of anticipated operating synergies from acquisitions, the potential for unknown or understated liabilities related to acquisitions, the potential loss of existing customers of acquisitions and our ability to retain key management personnel of acquired companies;
•a shortage of necessary personnel for production and increasing labor costs and related employee benefits to attract and retain production personnel in times of high demand;
•the loss or reduction of sales to key independent dealers, and stocking level decisions of our independent dealers;
•disruption of the delivery of units to independent dealers or the disruption of delivery of raw materials, including chassis, to our facilities;
•increasing costs for freight and transportation;
•the ability to protect our information technology systems from data breaches, cyber-attacks and/or network disruptions;
•asset impairment charges;
•competition;
•the impact of losses under repurchase agreements;
•the impact of the strength of the U.S. dollar on international demand for products priced in U.S. dollars;
•general economic, market, public health and political conditions in the various countries in which our products are produced and/or sold;
•the impact of changing emissions and other related climate change regulations in the various jurisdictions in which our products are produced, used and/or sold;
•changes to our investment and capital allocation strategies or other facets of our strategic plan; and
•changes in market liquidity conditions, credit ratings and other factors that may impact our access to future funding and the cost of debt.
These and other risks and uncertainties are discussed more fully in Item 1A of our Annual Report on Form 10-K for the year ended July 31, 2024.
We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this report or to reflect any change in our expectations after the date hereof or any change in events, conditions or circumstances on which any statement is based, except as required by law.
Executive Overview
We were founded in 1980 and have grown to become the largest manufacturer of recreational vehicles ("RVs") in the world based on units sold and revenue. We are also the largest manufacturer of RVs in North America, and one of the largest manufacturers of RVs in Europe. In North America, according to Statistical Surveys, Inc. ("Stat Surveys"), for the three months ended March 31, 2025, THOR's current combined U.S. and Canadian market share based on units sold was approximately 38.2% for travel trailers and fifth wheels combined and approximately 45.9% for motorhomes. In Europe, according to the European Caravan Federation ("ECF"), our European market share for the three months ended March 31, 2025 was approximately 25.1% for motorcaravans and campervans combined and approximately 16.1% for caravans.
Industry Outlook - North America
The Company monitors industry conditions in the North American RV market using a number of resources including its own performance tracking and modeling. The Company also considers monthly wholesale shipment data as reported by the RV Industry Association ("RVIA"), which is typically issued on a one-month lag and represents manufacturers' North American RV production and delivery to dealers. In addition, we monitor monthly North American retail sales trends as reported by Stat Surveys, whose data is typically issued on a month-and-a-half lag. The Company believes that monthly RV retail sales data is important as consumer purchases impact future dealer orders and ultimately our production and net sales.
North American RV independent dealer inventory of our North American RV products as of April 30, 2025 increased 4.4% to approximately 91,800 units, compared to approximately 87,900 units as of April 30, 2024. As of April 30, 2025, we believe North American dealer inventory levels for most products are generally in line with the levels that dealers are comfortable stocking heading into the spring selling season given the current retail sales levels and associated carrying costs. We believe dealers will continue to closely evaluate the unit stocking levels that they will elect to carry in future periods, which may be less than historical unit stocking levels, due to a combination of factors such as current retail activity, current RV wholesale prices as well as current interest rates and other carrying costs.
THOR's North American RV backlog as of April 30, 2025 decreased $149,074, or 8.9%, to $1,518,057 compared to $1,667,131 as of April 30, 2024, with the decrease driven primarily by a decrease in North American Towable backlog.
North American Industry Wholesale Statistics
Key wholesale statistics for the North American RV industry, as reported by RVIA for the periods indicated, are as follows:
U.S. and Canada Wholesale Unit Shipments
Calendar Quarter Ended March 31, Increase %
2025 2024 (Decrease) Change
North American Towable units 88,530 75,525 13,005 17.2
North American Motorized units 9,318 10,416 (1,098) (10.5)
Total 97,848 85,941 11,907 13.9
In June 2025, RVIA issued a revised forecast for calendar year 2025 wholesale unit shipments. Under the RVIA's most likely scenario, towable and motorized unit shipments are projected to be approximately 303,100 units and 33,800 units, respectively, for an annual total of approximately 337,000 units, up 1.0% from the 2024 calendar year wholesale shipments. The RVIA's most likely forecast for calendar year 2025 of 337,000 total units could range from a lower estimate of approximately 320,400 total units to an upper estimate of approximately 353,500 total units.
North American Industry Retail Statistics
Key retail statistics for the North American RV industry, as reported by Stat Surveys for the periods indicated, are as follows:
U.S. and Canada Retail Unit Registrations
Calendar Quarter Ended March 31, Increase %
2025 2024 (Decrease) Change
North American Towable units 61,332 67,029 (5,697) (8.5)
North American Motorized units 8,771 9,783 (1,012) (10.3)
Total 70,103 76,812 (6,709) (8.7)
Note: Data reported by Stat Surveys is based on official state and provincial records. This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or provinces.
While we anticipate that near-term demand will be influenced by many factors, including consumer confidence and the level of consumer spending on discretionary products, we believe future retail demand over the longer term will exceed historical, pre-pandemic levels. We believe interest in the RV lifestyle remains high as consumers continue to value the perceived benefits offered by the RV lifestyle, which provides people with the ability to connect with loved ones and nature as well as the potential to get away for short, frequent breaks or longer adventures.
Company North American Wholesale Statistics
The Company's North American wholesale RV shipments, for the calendar quarters ended March 31, 2025 and 2024 to correspond to the North American industry wholesale periods noted above, were as follows:
U.S. and Canada Wholesale Unit Shipments
Calendar Quarter Ended March 31, Increase %
2025 2024 (Decrease) Change
North American Towable units 34,867 29,693 5,174 17.4
North American Motorized units 4,875 4,831 44 0.9
Total 39,742 34,524 5,218 15.1
Company North American Retail Statistics
Retail statistics of the Company's North American RV products, as reported by Stat Surveys, for the calendar quarters ended March 31, 2025 and 2024 to correspond to the North American industry retail periods noted above, were as follows:
U.S. and Canada Retail Unit Registrations
Calendar Quarter Ended March 31, Increase %
2025 2024 (Decrease) Change
North American Towable units 22,951 26,237 (3,286) (12.5)
North American Motorized units 4,023 4,672 (649) (13.9)
Total 26,974 30,909 (3,935) (12.7)
Note: Data reported by Stat Surveys is based on official state and provincial records. This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or provinces.
North American Outlook
Historically, RV industry sales have been impacted by a number of economic conditions faced by RV dealers, and ultimately retail consumers, such as the level of consumer confidence, the rate of unemployment, the rate of inflation, the disposable income of consumers, interest rates, credit availability, the health of the housing market, tax rates and fuel availability and prices. We believe these factors will continue to affect retail sales in fiscal 2025. In addition, due to inflationary pressures, including the impact of higher tariffs, current interest rates and other factors, we believe that RV dealers will be continuously reevaluating their desired stocking levels, which may result in lower than historical dealer inventory stocking levels on a unit basis. It is difficult to predict the extent to which any or all of these factors will impact the RV industry or our business in a particular future period, however, we currently believe the remainder of fiscal 2025 will continue to be negatively impacted by these factors.
Despite the continuing near-term challenges, we remain optimistic about the future of North American retail sales in the long term, as there are many factors driving product interest. Surveys conducted by THOR, RVIA and others show that Americans of all generations love the freedom of the outdoors and the enrichment that comes with living an active lifestyle. RVs allow people to be in control of their travel experiences, going where they want, when they want and with the people they want. The RV units we design, produce and sell allow people to spend time outdoors pursuing their favorite activities, creating cherished moments and deeply connecting with family and friends. Based on the ongoing value consumers place on these factors, we expect to see long-term growth in the North American RV industry. The growth in industry-wide RV sales during late calendar year 2020 through early calendar year 2023 resulted in exposing a wider range of consumers to the RV lifestyle. As a result, we believe many of those who have been exposed to the industry for the first time will become future owners once general economic conditions improve, and that those who became first-time owners since the onset of the pandemic will become long-term RVers, resulting in future repeat and upgrade sales opportunities. We also believe many consumers are likely to continue opting for fewer vacations via air travel, cruise ships and hotels, while preferring vacations that RVs are uniquely positioned to provide, allowing consumers the ability to explore or unwind, often close to home. In addition, we believe that the availability of camping and RV parking facilities will be an important factor in the future growth of the industry and view both the significant recent investments and the committed future investments by campground owners, states and the federal government in camping facilities and accessibility to state and federal parks and forests to be positive long-term factors.
Economic and industry-wide factors that have historically affected, and which we believe will continue to affect, our operating results include the costs of commodities, the availability of critical supply components and labor costs incurred in the production of our products. Material and labor costs are the primary factors determining our cost of products sold, and any future increases in raw material or labor costs will impact our profit margins negatively if we are unable to offset those cost increases through a combination of product recontenting, material sourcing strategies, efficiency improvements or raising the selling prices for our products by corresponding amounts. We are closely monitoring the imposition of new and higher U.S. tariffs on imports, as well as retaliatory tariffs or other measures certain other countries have already or may impose on U.S. imports, that may increase our material costs or disrupt our supply of materials. We are currently uncertain as to the ultimate impact these measures may have given the rapidly changing environment surrounding tariffs and other related political topics. The impact of increased or new tariffs in our fiscal third quarter was modest due to the timing of the announced tariffs and us working with our vendors regarding the extent and timing of any resultant cost increases. We would expect additional tariff impacts on our upcoming fourth quarter results, but it is difficult to assess the ultimate impact they may have given the ongoing changes in tariff rates, what components will be impacted and when, plus the fact that we are often not importing products or components directly but rather through third-party vendors and therefore do not have complete visibility regarding the timing or impact on the pricing of components we purchase. We intend to continue negotiations with our vendors regarding the timing and extent of any tariff pass-through costs, and where possible, will seek alternative supply sources with lower-priced components.
Historically, we have generally been able to offset net cost increases over time, but given the size and nature of the tariffs currently in the process of being implemented and future tariffs being discussed, it may not be possible or desirable for us to pass on the full impact of tariff increases immediately as we are conscious of the impact it likely would have on the retail consumer and their demand for our products. Once a clearer and more certain picture of the tariff environment is established, we will be in a position to more fully assess the potential impact tariffs may have on our product selling prices and our operating results.
It is extremely difficult to predict when or whether future supply chain issues related to chassis or other components used in the production of RVs will arise, especially when considering the impact tariffs may have on the availability of goods. Modifying available chassis for certain motorized products to use for other products is not a viable alternative, particularly in the short term, due to engineering requirements. Uncertainties related to changing state and federal emission standards may also negatively impact the availability of chassis used in our production of certain North American motorized RVs and could also impact consumer buying patterns. The North American recreational vehicle industry has, from time to time in the past, experienced shortages of chassis for various reasons, including component shortages, production delays or other production issues and work stoppages at the chassis manufacturers.
While the North American RV industry has at times faced supply shortages or delivery delays of other, non-chassis raw material components, the supply chain is currently able to support our demand, but that could change quickly given the current and potential future impact tariffs may have on supply. If any of these factors were to impact our suppliers' ability to fully supply our needs for key components, our costs of such components and our production output could be adversely affected.
Industry Outlook - Europe
The Company monitors industry conditions in the European RV market using a number of resources including its own performance tracking and modeling. The Company also considers retail trends in the European RV market as reported by the European Caravan Federation ("ECF") and its members. On a monthly basis, the Company receives OEM-specific reports for most of the individual member countries that make up the ECF through the Caravaning Industrie Verband e.V. ("CIVD"). The timing of these reports may vary, but typically they are issued on a one-to-two-month lag. While most countries provide OEM-specific information, the United Kingdom, which made up 17.7% and 10.4% of the caravan and motorcaravan (including campervans) European market for the three months ended March 31, 2025, respectively, does not provide OEM-specific information. Industry wholesale shipment data for the European RV market is not available.
Within Europe, over 90% of our sales are made to dealers within 10 different European countries. The market conditions, as well as the operating status of our independent dealers within each country, vary based on the various local economic and other conditions. It is inherently difficult to generalize about the operating conditions within the entire European region.
Independent dealer inventory of our European RV products as of April 30, 2025 decreased 6.9% to approximately 23,000 units as compared to approximately 24,700 units as of April 30, 2024. In both Germany, which accounts for approximately 60% of our European product sales, and in the other various countries we serve, independent RV dealer inventory levels of our motorized European products are generally in line with historic seasonal levels, while towable inventory is slightly elevated.
THOR's European RV backlog as of April 30, 2025 decreased $591,511, or 30.6%, to $1,343,608 compared to $1,935,119 as of April 30, 2024, primarily due to improved chassis supply availability as chassis constraints in the prior year resulted in elevated backlogs as of April 30, 2024. The current backlog, measured in U.S. dollars, remains higher than historic seasonal levels.
European Industry Retail Statistics
Key retail statistics for the European RV industry, as reported by the ECF for the periods indicated, are as follows:
European Unit Registrations
Motorcaravan and Campervan (2)
Caravan
Calendar Quarter Ended March 31, % Calendar Quarter Ended March 31, %
2025 2024 Change 2025 2024 Change
OEM Reporting Countries (1)
31,838 35,528 (10.4) 10,036 10,743 (6.6)
Non-OEM Reporting Countries (1)
4,978 5,033 (1.1) 2,908 3,889 (25.2)
Total 36,816 40,561 (9.2) 12,944 14,632 (11.5)
(1)Industry retail registration statistics have been compiled from individual countries' reporting of retail sales, and include the following countries: Germany, France, Sweden, Netherlands, Norway, Italy, Spain and others, collectively the "OEM Reporting Countries." The "Non-OEM Reporting Countries" are primarily the United Kingdom and others. Total European unit registrations are reported quarterly by the ECF.
(2)The ECF reports motorcaravans and campervans together.
Note: Data from the ECF is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various countries. (The "Non-OEM Reporting Countries" either do not report OEM-specific data to the ECF or do not have it available for the entire time period covered).
Company European Retail Statistics (1)
European Unit Registrations (1)
Calendar Quarter Ended March 31, Increase %
2025 2024 (Decrease) Change
Motorcaravan and Campervan 8,003 9,152 (1,149) (12.6)
Caravan 1,613 1,898 (285) (15.0)
Total OEM-Reporting Countries 9,616 11,050 (1,434) (13.0)
(1)Company retail registration statistics have been compiled from individual countries reporting of retail sales, and include the following countries: Germany, France, Sweden, Netherlands, Norway, Italy, Spain and others, collectively the "OEM Reporting Countries."
Note: Data from the ECF is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various countries.
European Outlook
Our European operations offer a full lineup of leisure vehicles including caravans and motorized products including urban vehicles, campervans and small-to-large motorcaravans. Our product offerings are not limited to vehicles only but also include accessories and services, including vehicle rentals. We address European retail customers through a sophisticated brand management approach based on consumer segmentation according to target group, core values and emotions. With the assistance of data-based and digital marketing, we intend to continue expanding our retail customer reach to new and younger consumer segments.
The impact of current macroeconomic factors on our business, including inflation and interest rates, environmental and sustainability regulations and geopolitical events, is uncertain. Our outlook for future European RV retail sales depends upon the various economic and regulatory conditions in the respective countries in which we sell our products. End-customer demand for RVs depends strongly on consumer confidence. Factors such as the rate of unemployment, the rate of inflation, private consumption and investments, the level of disposable income of consumers, interest rates, the health of the housing market, tax rates and regulatory restrictions and, since the pandemic, travel safety considerations all influence retail sales. While confidence remains in our customer base, in the short term, we expect to continue to experience downward pressure on overall sales volume due to the current macroeconomic environment and a prolonged shift in consumer preferences. Our long-term outlook for future growth in European RV retail sales remains positive due to favorable demographic trends and as more people utilize RVs as a way to support their lifestyle in search of independence and individuality, as well as using the RV as a multi-purpose vehicle to escape urban life and explore outdoor activities and nature.
We and our independent European dealers market our European recreational vehicles through multiple avenues including at numerous RV fairs at the country and regional levels which occur throughout the calendar year. These fairs have historically been well-attended events that allow retail consumers to see the newest products, features and designs and to talk with product experts in addition to being able to purchase or order an RV. The most recent major industry fair, the CMT Show in Stuttgart in late January 2025, experienced near-record attendance, which demonstrates the continued high level of interest and consumer demand in the RV lifestyle. In addition to our attendance at various strategic trade fairs, we have and will continue to strengthen and expand our digital activities to reach high potential target groups, generate leads and steer customers directly to dealerships. With approximately 1,100 active independent dealers in Germany and throughout Europe with whom we do business, we believe our European brands have one of the strongest and most professionally structured dealer and service networks in Europe.
Economic or industry-wide factors affecting our European RV operating results include the availability and costs of commodities and component parts and the labor used in the manufacture of our products. Labor agreements and various governmental regulations are primary drivers in the cost of our labor force and impact how and when we can adjust our labor force to align with changing production needs. Adjusting our full-time workforce downwards in most of the locations where we operate in Europe generally results in negotiated separation costs. Material and labor costs are the primary factors determining our cost of products sold and any future increases in these costs could negatively impact our profit margins if we are unable to offset those costs through a combination of product recontenting, material sourcing strategies, efficiency improvements, headcount reductions or raising the selling prices for our products by corresponding amounts.
While overall chassis supply has improved, disruption in the sequence of chassis supply has in the past inhibited, and could in the future, inhibit our ability to efficiently and consistently maintain our planned production levels. Uncertainties related to changing emission standards may also negatively impact the availability of chassis and/or other components used in our production of certain European motorized RVs and could also impact consumer buying patterns.
When possible, to minimize the future impact of supply chain constraints, we have identified a second-source supplier base for certain component parts; however, engineering requirements associated with an alternate component part, particularly the chassis on which our various units are built, could limit the impact of these alternative suppliers on reducing any near-term supply constraints.
In addition to potential future material supply constraints, labor shortages have in the past impacted, and could in the future, impact our European operations given the numerous locations where our manufacturing sites are located and the differing availability of skilled labor in those locations. As previously noted, high levels of labor costs and limitations on our ability to reduce those costs commensurate with market conditions have in the past, and could in the future, negatively impact our European operations.
Three Months Ended April 30, 2025 Compared to the Three Months Ended April 30, 2024
NET SALES: Three Months Ended
April 30, 2025 		Three Months Ended
April 30, 2024 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 1,168,878 $ 1,071,393 $ 97,485 9.1
North American Motorized 666,686 646,948 19,738 3.1
Total North America 1,835,564 1,718,341 117,223 6.8
European 883,542 931,061 (47,519) (5.1)
Total recreational vehicles 2,719,106 2,649,402 69,704 2.6
Other 258,427 216,227 42,200 19.5
Intercompany eliminations (82,717) (64,516) (18,201) (28.2)
Total $ 2,894,816 $ 2,801,113 $ 93,703 3.3
# OF UNITS:
Recreational vehicles
North American Towable 36,077 34,193 1,884 5.5
North American Motorized 5,507 4,964 543 10.9
Total North America 41,584 39,157 2,427 6.2
European 13,495 15,363 (1,868) (12.2)
Total 55,079 54,520 559 1.0
GROSS PROFIT: % of
Segment
Net Sales 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 174,317 14.9 $ 138,103 12.9 $ 36,214 26.2
North American Motorized 70,297 10.5 71,753 11.1 (1,456) (2.0)
Total North America 244,614 13.3 209,856 12.2 34,758 16.6
European 142,830 16.2 162,915 17.5 (20,085) (12.3)
Total recreational vehicles 387,444 14.2 372,771 14.1 14,673 3.9
Other, net 55,675 21.5 49,081 22.7 6,594 13.4
Total $ 443,119 15.3 $ 421,852 15.1 $ 21,267 5.0
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Recreational vehicles
North American Towable $ 73,096 6.3 $ 64,895 6.1 $ 8,201 12.6
North American Motorized 34,332 5.1 34,489 5.3 (157) (0.5)
Total North America 107,428 5.9 99,384 5.8 8,044 8.1
European 79,937 9.0 72,167 7.8 7,770 10.8
Total recreational vehicles 187,365 6.9 171,551 6.5 15,814 9.2
Other 21,882 8.5 19,731 9.1 2,151 10.9
Corporate 29,026 - 35,233 - (6,207) (17.6)
Total $ 238,273 8.2 $ 226,515 8.1 $ 11,758 5.2
INCOME (LOSS) BEFORE INCOME TAXES: Three Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Three Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 97,587 8.3 $ 68,409 6.4 $ 29,178 42.7
North American Motorized 32,883 4.9 33,172 5.1 (289) (0.9)
Total North America 130,470 7.1 101,581 5.9 28,889 28.4
European 46,299 5.2 77,382 8.3 (31,083) (40.2)
Total recreational vehicles 176,769 6.5 178,963 6.8 (2,194) (1.2)
Other, net 25,041 9.7 18,831 8.7 6,210 33.0
Corporate (46,230) - (55,444) - 9,214 16.6
Total $ 155,580 5.4 $ 142,350 5.1 $ 13,230 9.3

ORDER BACKLOG: 		As of
April 30, 2025 		As of
April 30, 2024 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 634,318 $ 741,302 $ (106,984) (14.4)
North American Motorized 883,739 925,829 (42,090) (4.5)
Total North America 1,518,057 1,667,131 (149,074) (8.9)
European 1,343,608 1,935,119 (591,511) (30.6)
Total $ 2,861,665 $ 3,602,250 $ (740,585) (20.6)
CONSOLIDATED
Consolidated net sales for the three months ended April 30, 2025 increased $93,703, or 3.3%, compared to the three months ended April 30, 2024. Approximately 30.5% of the Company's consolidated net sales for the quarter ended April 30, 2025 were transacted in a currency other than the U.S. dollar. The Company's most material exchange rate exposure is sales in Euros. The $93,703 increase in consolidated net sales includes an increase of $2,663 from the change in currency exchange rates between the two periods. To determine this impact, net sales transacted in currencies other than U.S. dollars have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative periods.
Consolidated gross profit for the three months ended April 30, 2025 increased $21,267, or 5.0%, compared to the three months ended April 30, 2024. Consolidated gross profit was 15.3% of consolidated net sales for the three months ended April 30, 2025 and 15.1% for the three months ended April 30, 2024. The increases in consolidated gross profit and the consolidated gross profit percentage were both primarily due to the impact of the increase in consolidated net sales compared to the prior-year quarter.
Selling, general and administrative expenses for the three months ended April 30, 2025 increased $11,758, or 5.2%, compared to the three months ended April 30, 2024, primarily due to the impact of the 3.3% increase in consolidated net sales and an increase in incentive compensation costs driven by the increase in income before income taxes.
The increase in net expense included in Other income (expense), net of $9,616 for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 is primarily due to the unfavorable change in Corporate other income and expenses as discussed below relative to the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the two periods.
The increase of $13,230, or 9.3%, in income before income taxes for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 was primarily driven by the increase in consolidated net sales and the improved gross profit percentage.
The overall effective income tax rate for the three months ended April 30, 2025 was 13.9% compared with 20.2% for the three months ended April 30, 2024. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of certain foreign exchange gains not subject to taxation during the three months ended April 30, 2025. In addition, income tax benefits were recorded from certain tax provision adjustments that primarily resulted from changes in estimates while completing the prior-year return during the three months ended April 30, 2025.
Additional information concerning the changes in net sales, gross profit, selling, general and administrative expenses and income before income taxes are addressed below and in the segment reporting that follows.
Corporate costs included in consolidated selling, general and administrative expenses decreased $6,207 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. This decrease included a decrease in deferred compensation expense of $9,663 due to market value fluctuations between the two periods, which was primarily offset by the decrease in other income related to the deferred compensation plan assets noted below. This decrease was partially offset by the prior-year quarter including $2,700 of income from adjustments made related to the matters discussed in Note 14 to the Condensed Consolidated Financial Statements.
Net expense included in Corporate interest and other income and expense decreased $3,007 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, primarily due to a decrease of $9,389 in net interest expense due to lower average outstanding debt balances and lower interest rates, and the recorded operating results of our equity investments as discussed in Note 8 to the Condensed Consolidated Financial Statements improved by $3,047. These favorable changes were partially offset by a decrease of $9,378 in other income on the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the two periods.
Segment Reporting
NORTH AMERICAN TOWABLE RECREATIONAL VEHICLES
Analysis of the change in net sales for the three months ended April 30, 2025 compared to the three months ended April 30, 2024:
Three Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Three Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change Amount
%
Change
NET SALES:
North American Towable
Travel Trailers $ 676,680 57.9 $ 720,194 67.2 $ (43,514) (6.0)
Fifth Wheels 492,198 42.1 351,199 32.8 140,999 40.1
Total North American Towable $ 1,168,878 100.0 $ 1,071,393 100.0 $ 97,485 9.1
Three Months Ended
April 30, 2025 		% of
Segment
Shipments 		Three Months Ended
April 30, 2024 		% of
Segment
Shipments 		Change Amount
%
Change
# OF UNITS:
North American Towable
Travel Trailers 28,417 78.8 28,526 83.4 (109) (0.4)
Fifth Wheels 7,660 21.2 5,667 16.6 1,993 35.2
Total North American Towable 36,077 100.0 34,193 100.0 1,884 5.5
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:
%
Change
North American Towable
Travel Trailers (5.6)
Fifth Wheels 4.9
Total North American Towable 3.6
The increase in total North American Towable net sales of 9.1% compared to the prior-year quarter resulted from a 5.5% increase in unit shipments and a 3.6% increase in the overall net price per unit due to the combined impact of changes in product mix and price. The increase in unit shipments is primarily due to an increase in fifth wheel unit sales, which increased 35.2% over the prior-year quarter. According to statistics published by RVIA, for the three months ended April 30, 2025, combined North American travel trailer and fifth wheel wholesale unit shipments increased 10.7% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended March 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 38.2% and 40.1%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.
The decrease in the overall net price per unit within the travel trailer product line of 5.6% was primarily due to current product mix trending toward the more moderately-priced units as compared to the prior-year quarter. The increase in the overall net price within the fifth wheel product line of 4.9% was primarily due to product mix changes and lower sales discounting as compared to the prior-year quarter.
North American Towable cost of products sold increased $61,271 to $994,561, or 85.1% of North American Towable net sales, for the three months ended April 30, 2025 compared to $933,290, or 87.1% of North American Towable net sales, for the three months ended April 30, 2024. Changes in material, labor, freight-out and warranty costs comprised $60,161 of the $61,271 increase in cost of products sold. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales decreased to 78.2% for the three months ended April 30, 2025 compared to 79.6% for the three months ended April 30, 2024, primarily due to decreases in both the freight-out and warranty cost percentages.
Total manufacturing overhead increased a slight $1,110 in correlation with the net sales increase, but decreased as a percentage of North American Towable net sales from 7.5% to 6.9% as the increased net sales levels resulted in lower overhead costs per unit sold.
The increase in North American Towable gross profit of $36,214 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was driven by the increase in North American Towable net sales, and the increase in the gross profit percentage is due to the decrease in the cost of products sold percentage noted above.
The increase in North American Towable selling, general and administrative expenses of $8,201 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to the increase in North American Towable net sales and income before income taxes causing related commissions, incentive and other compensation costs to increase by $6,010. Sales-related travel, advertising and promotional costs also increased by $1,079.
The increase in North American Towable income before income taxes of $29,178 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to the increase in North American Towable net sales, while North American Towable income before income taxes as a percentage of North American Towable net sales increased primarily due to the decrease in the cost of products sold percentage noted above.
NORTH AMERICAN MOTORIZED RECREATIONALVEHICLES
Analysis of the change in net sales for the three months ended April 30, 2025 compared to the three months ended April 30, 2024:
Three Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Three Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change
Amount
%
Change
NET SALES:
North American Motorized
Class A $ 174,783 26.2 $ 211,340 32.7 $ (36,557) (17.3)
Class C 340,530 51.1 312,980 48.4 27,550 8.8
Class B 151,373 22.7 122,628 18.9 28,745 23.4
Total North American Motorized $ 666,686 100.0 $ 646,948 100.0 $ 19,738 3.1
Three Months Ended
April 30, 2025 		% of
Segment
Shipments 		Three Months Ended
April 30, 2024 		% of
Segment
Shipments 		Change
Amount
%
Change
# OF UNITS:
North American Motorized
Class A 991 18.0 1,040 21.0 (49) (4.7)
Class C 3,243 58.9 2,867 57.8 376 13.1
Class B 1,273 23.1 1,057 21.2 216 20.4
Total North American Motorized 5,507 100.0 4,964 100.0 543 10.9
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:
%
Change
North American Motorized
Class A (12.6)
Class C (4.3)
Class B 3.0
Total North American Motorized (7.8)
The increase in total North American Motorized net sales of 3.1% compared to the prior-year quarter resulted from a 10.9% increase in unit shipments and a 7.8% decrease in the overall net price per unit due to the impact of changes in product mix and price, primarily within the Class A product line. According to statistics published by RVIA, for the three months ended April 30, 2025, combined North American motorhome wholesale unit shipments decreased 7.3% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended March 31, 2025 and 2024, our North American market share for motorhomes was 45.9% and 47.8%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.
The decrease in the overall net price per unit within the Class A product line of 12.6% was mainly due to product mix changes, primarily a higher concentration in the current-year quarter of the more moderately-priced gas units as opposed to the higher-priced diesel units, in addition to higher discounting levels. The decrease in the overall net price per unit within the Class C product line of 4.3% was primarily due to higher discounting levels. The increase in the overall net price per unit within the Class B product line of 3.0% was primarily due to product mix changes and selective net selling price increases being partially offset by higher discounting levels compared to the prior-year quarter.
North American Motorized cost of products sold increased $21,194 to $596,389, or 89.5% of North American Motorized net sales, for the three months ended April 30, 2025 compared to $575,195, or 88.9% of North American Motorized net sales, for the three months ended April 30, 2024. The changes in material, labor, freight-out and warranty costs comprised $23,930 of the overall $21,194 increase primarily due to the increased net sales volume. Material, labor, freight-out and warranty costs as a combined percentage of North American Motorized net sales increased to 84.3% for the three months ended April 30, 2025 compared to 83.1% for the three months ended April 30, 2024, with the increase mainly due to an increase in the material cost percentage, primarily due to increased sales discounting and product mix changes, partially offset by a decrease in the warranty cost percentage.
Total manufacturing overhead decreased $2,736, primarily due to lower employee insurance and benefit costs, and decreased as a percentage of North American Motorized net sales from 5.8% to 5.2% as the increase in net sales levels and lower overhead costs resulted in lower overhead costs per unit sold.
The slight decrease in North American Motorized gross profit of $1,456 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 and the decrease in the gross profit percentage were both primarily due to the increase in the cost of products sold percentage noted above.
North American Motorized selling, general and administrative expenses decreased $157 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 and there were no changes of significance within its major cost components. The decrease in the overall selling, general and administrative expense as a percentage of North American Motorized net sales is due to the increase in North American Motorized net sales.
The slight decrease in North American Motorized income before income taxes of $289 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 and the decrease in percentage were both due to the increase in the cost of products sold expense percentage noted above.
EUROPEAN RECREATIONAL VEHICLES
Analysis of the change in net sales for the three months ended April 30, 2025 compared to the three months ended April 30, 2024:
Three Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Three Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change
Amount
%
Change
NET SALES:
European
Motorcaravan $ 481,554 54.5 $ 492,490 52.9 $ (10,936) (2.2)
Campervan 252,227 28.5 289,450 31.1 (37,223) (12.9)
Caravan 59,083 6.7 64,379 6.9 (5,296) (8.2)
Other 90,678 10.3 84,742 9.1 5,936 7.0
Total European $ 883,542 100.0 $ 931,061 100.0 $ (47,519) (5.1)
Three Months Ended
April 30, 2025 		% of
Segment
Shipments 		Three Months Ended
April 30, 2024 		% of
Segment
Shipments 		Change
Amount
%
Change
# OF UNITS:
European
Motorcaravan 6,484 48.0 6,601 43.0 (117) (1.8)
Campervan 4,632 34.3 6,194 40.3 (1,562) (25.2)
Caravan 2,379 17.7 2,568 16.7 (189) (7.4)
Total European 13,495 100.0 15,363 100.0 (1,868) (12.2)
IMPACT OF CHANGES IN FOREIGN CURRENCY, PRODUCT MIX AND PRICE ON NET SALES:
Foreign Currency % Mix and Price % %
Change
European
Motorcaravan 0.3 (0.7) (0.4)
Campervan 0.3 12.0 12.3
Caravan 0.3 (1.1) (0.8)
Total European 0.3 6.8 7.1
The decrease in total European Recreational Vehicle net sales of 5.1% compared to the prior-year quarter resulted from a 12.2% decrease in unit shipments offset in part by a 7.1% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price. The decrease in European Recreational Vehicle net sales of $47,519 includes an increase of $2,663, or 0.3% netted in the 5.1% decrease, due to the increase in foreign exchange rates compared to the prior-year quarter. According to the most recently published statistics from the European Caravan Federation, our combined European market share for the three months ended March 31, 2025 and 2024 was approximately 23.0% and 23.9%, respectively.
The overall net price per unit increase of 7.1% includes a 0.3% increase due to the impact of foreign currency exchange rate changes and a 6.8% increase due to the combined impact of product mix and price, primarily due to the higher concentration of Motorcaravan sales in the current-year quarter due to improved chassis supply and fewer other component constraints compared to the prior-year quarter.
The constant-currency decrease in the overall net price per unit within the Motorcaravan product line of 0.7% was primarily due to the impact of selective net selling price increases and product mix changes being slightly more than offset by increased sales discounting. The constant-currency increase in the overall net price per unit within the Campervan product line of 12.0% was primarily due to the current-year quarter including a higher concentration of Campervan units with a purchased chassis that is included in the unit sales price as opposed to units with a customer-supplied chassis that is not included in the unit sales price. The constant-currency decrease in the Caravan product line of 1.1% was primarily due to increased sales discounting.
European Recreational Vehicle cost of products sold decreased $27,434 to $740,712, or 83.8% of European Recreational Vehicle net sales, for the three months ended April 30, 2025 compared to $768,146, or 82.5% of European Recreational Vehicle net sales, for the three months ended April 30, 2024. Changes in material, labor, freight-out and warranty costs comprised $26,796 of the $27,434 decrease. Material, labor, freight-out and warranty costs as a combined percentage of European Recreational Vehicle net sales increased to 73.7% for the three months ended April 30, 2025 compared to 72.9% the three months ended April 30, 2024 as a result of slight increases in both the material cost percentage due to increased sales discounting and the warranty cost percentage.
Total manufacturing overhead decreased by just $638 but increased as a percentage of European Recreational Vehicle net sales from 9.6% to 10.1% due to the net sales decrease resulting in higher overhead costs per unit sold.
The decrease in European Recreational Vehicle gross profit of $20,085 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to the decrease in European Recreational Vehicle net sales, and the decrease in the gross profit percentage is due to the increase in the cost of products sold percentage noted above.
European Recreational Vehicle selling, general and administrative expenses increased $7,770 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, primarily due to a total of $6,822 in employee separation costs and an increase in repurchase and related dealer financing costs of $4,529. These increases were partially offset by the impact of the decrease in European Recreational Vehicle net sales and income before income taxes, which caused related commissions, incentive and other compensation to decrease by $1,861, and professional fees decreased by $1,000. The increase in the overall selling, general and administrative expense as a percentage of European Recreational Vehicle net sales is primarily due to the increase in costs coupled with the decrease in European Recreational Vehicle net sales noted above.
The decrease in European Recreational Vehicle income before income taxes of $31,083 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to the impact of the decrease in European Recreational Vehicle net sales and the increase in selling, general and administrative expenses, and the primary reasons for the decrease in percentage were the increases in both the cost of products sold and selling, general and administrative expense percentages noted above.
Nine Months Ended April 30, 2025 Compared to the Nine Months Ended April 30, 2024
NET SALES: Nine Months Ended
April 30, 2025 		Nine Months Ended
April 30, 2024 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 2,895,922 $ 2,747,815 $ 148,107 5.4
North American Motorized 1,618,192 1,928,531 (310,339) (16.1)
Total North America 4,514,114 4,676,346 (162,232) (3.5)
European 2,100,910 2,421,556 (320,646) (13.2)
Total recreational vehicles 6,615,024 7,097,902 (482,878) (6.8)
Other 637,591 581,682 55,909 9.6
Intercompany eliminations (196,908) (170,343) (26,565) (15.6)
Total $ 7,055,707 $ 7,509,241 $ (453,534) (6.0)
# OF UNITS:
Recreational vehicles
North American Towable 94,108 84,258 9,850 11.7
North American Motorized 12,774 14,984 (2,210) (14.7)
Total North America 106,882 99,242 7,640 7.7
European 31,572 40,335 (8,763) (21.7)
Total 138,454 139,577 (1,123) (0.8)
GROSS PROFIT: % of
Segment
Net Sales 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 378,400 13.1 $ 310,011 11.3 $ 68,389 22.1
North American Motorized 147,765 9.1 211,866 11.0 (64,101) (30.3)
Total North America 526,165 11.7 521,877 11.2 4,288 0.8
European 316,407 15.1 405,068 16.7 (88,661) (21.9)
Total recreational vehicles 842,572 12.7 926,945 13.1 (84,373) (9.1)
Other, net 127,186 19.9 123,686 21.3 3,500 2.8
Total $ 969,758 13.7 $ 1,050,631 14.0 $ (80,873) (7.7)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Recreational vehicles
North American Towable $ 196,732 6.8 $ 184,717 6.7 $ 12,015 6.5
North American Motorized 91,732 5.7 103,756 5.4 (12,024) (11.6)
Total North America 288,464 6.4 288,473 6.2 (9) -
European 226,960 10.8 221,119 9.1 5,841 2.6
Total recreational vehicles 515,424 7.8 509,592 7.2 5,832 1.1
Other 60,776 9.5 56,549 9.7 4,227 7.5
Corporate 108,492 - 98,395 - 10,097 10.3
Total $ 684,692 9.7 $ 664,536 8.8 $ 20,156 3.0
INCOME (LOSS) BEFORE INCOME TAXES: Nine Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Nine Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 172,560 6.0 $ 118,319 4.3 $ 54,241 45.8
North American Motorized 46,262 2.9 96,684 5.0 (50,422) (52.2)
Total North America 218,822 4.8 215,003 4.6 3,819 1.8
European 49,686 2.4 144,206 6.0 (94,520) (65.5)
Total recreational vehicles 268,508 4.1 359,209 5.1 (90,701) (25.3)
Other, net 38,083 6.0 35,650 6.1 2,433 6.8
Corporate (153,767) - (173,033) - 19,266 11.1
Total $ 152,824 2.2 $ 221,826 3.0 $ (69,002) (31.1)
CONSOLIDATED
Consolidated net sales for the nine months ended April 30, 2025 decreased $453,534, or 6.0%, compared to the nine months ended April 30, 2024. Approximately 29.8% of the Company's consolidated net sales for the nine months ended April 30, 2025 were transacted in a currency other than the U.S. dollar. The Company's most material exchange rate exposure is sales in Euros. The $453,534 decrease in consolidated net sales included a decrease $1,393 from the change in currency exchange rates between the two periods. To determine this impact, net sales transacted in currencies other than U.S. dollars have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative periods.
Consolidated gross profit for the nine months ended April 30, 2025 decreased $80,873 compared to the nine months ended April 30, 2024. Consolidated gross profit was 13.7% of consolidated net sales for the nine months ended April 30, 2025 and 14.0% for the nine months ended April 30, 2024. The decreases in consolidated gross profit and the consolidated gross profit percentage were both primarily due to the impact of the decrease in consolidated net sales in the current-year period compared to the prior-year period.
Selling, general and administrative expenses for the nine months ended April 30, 2025 increased $20,156, or 3.0%, compared to the nine months ended April 30, 2024. This increase included the impact of the 6.0% decrease in consolidated net sales and the decrease in income before income taxes, which resulted in lower commissions and other incentive compensation, which was more than offset by the increase in certain Corporate selling, general and administrative expenses as discussed below.
The increase in net expense included in Other income (expense), net of $8,300 for the nine months ended April 30, 2025 as compared to the nine months ended April 30, 2024 includes the $6,543 unfavorable change in Corporate other income and expenses as discussed below relative to the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the two periods, as well as a decrease of $8,129 in gains on the dispositions of property, plant and equipment compared to the prior-year period. These unfavorable changes were partially offset by an improvement in the operating results of our equity investments of $7,979.
The decrease of $69,002, or 31.1%, in income before income taxes for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily driven by the impact of the decrease in consolidated net sales and the increase in selling, general and administrative expenses noted above.
The overall effective income tax rate for the nine months ended April 30, 2025 was 15.0% compared with 21.6% for the nine months ended April 30, 2024. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of foreign exchange gains not subject to taxation during the nine months ended April 30, 2025. In addition, income tax benefits were recorded from certain tax provision adjustments that primarily resulted from changes in estimates while completing the prior-year return during the nine months ended April 30, 2025.
Additional information concerning the changes in net sales, gross profit, selling, general and administrative expenses and income before income taxes are addressed below and in the segment reporting that follows.
Corporate costs included in consolidated selling, general and administrative expenses increased $10,097 for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024. The increase included an increase in compensation costs of $15,071, primarily due to employee separation costs related to certain headcount reductions in the current-year period, and the prior-year period included income of $16,900 related to the matters discussed in Note 14 to the Condensed Consolidated Financial Statements. These increases were partially offset by a decrease in deferred compensation expense of $5,631 due to market value fluctuations between the two periods, which was primarily offset by the decrease in other income related to the deferred compensation plan assets noted below. In addition, there was a decrease of $9,178 in legal and professional fees, primarily due to the prior-year period including $7,175 of third-party fees related to the November 2023 debt refinancing, a decrease in certain dealer promotional costs of $4,350 and a decrease of $3,675 in costs related to our standby repurchase obligations reserve due to reductions in both dealer inventory levels and repurchase activity compared to the prior-year period.
Net expense from Corporate interest and other income and expense decreased $29,363 for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024. Net interest expense decreased by $29,009 primarily due to lower average outstanding debt balances and lower interest rates coupled with the prior-year interest expense including debt extinguishment charges of $7,566 related to the November 2023 debt refinancing. In addition, the recorded operating results of our equity investments as discussed in Note 8 to the Condensed Consolidated Financial Statements improved by $7,979 in the current-year period as compared to the prior-year period, and there were favorable changes of $1,754 in the fair value of certain other equity investments due to market value fluctuations between the two periods. These favorable changes were partially offset by an unfavorable change of $6,543 in the fair value of the Company's deferred compensation assets and an unfavorable change of $2,639 related to non-cash foreign currency gains on certain Euro-denominated loans between the two periods.
Segment Reporting
NORTH AMERICAN TOWABLE RECREATIONAL VEHICLES
Analysis of the change in net sales for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024:
Nine Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Nine Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change Amount %
Change
NET SALES:
North American Towable
Travel Trailers $ 1,797,995 62.1 $ 1,811,215 65.9 $ (13,220) (0.7)
Fifth Wheels 1,097,927 37.9 936,600 34.1 161,327 17.2
Total North American Towable $ 2,895,922 100.0 $ 2,747,815 100.0 $ 148,107 5.4
Nine Months Ended
April 30, 2025 		% of
Segment
Shipments 		Nine Months Ended
April 30, 2024 		% of
Segment
Shipments 		Change Amount %
Change
# OF UNITS:
North American Towable
Travel Trailers 77,015 81.8 68,808 81.7 8,207 11.9
Fifth Wheels 17,093 18.2 15,450 18.3 1,643 10.6
Total North American Towable 94,108 100.0 84,258 100.0 9,850 11.7
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES: %
Change
North American Towable
Travel Trailers (12.6)
Fifth Wheels 6.6
Total North American Towable (6.3)
The increase in total North American Towable net sales of 5.4% compared to the prior-year period resulted from a 11.7% increase in unit shipments and a 6.3% decrease in the overall net price per unit due to the combined impact of changes in product mix and price. The increase in unit shipments was primarily due to the heightened demand for the lower-cost travel trailer units as compared to the prior-year period. According to statistics published by RVIA, for the nine months ended April 30, 2025, combined North American travel trailer and fifth wheel wholesale unit shipments increased 10.4% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the nine-month periods ended March 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 37.8% and 40.4%, respectively. Comparisons of Company shipments to industry shipments on an interim basis would not necessarily be indicative of the results expected for a full fiscal year.
The decrease in the overall net price per unit within the travel trailer product line of 12.6% was primarily due to current product mix trending toward more moderately-priced units as compared to the prior-year period. The increase within the fifth wheel product line of 6.6% was primarily due to product mix changes and lower sales discounting as compared to the prior-year period.
North American Towable cost of products sold increased $79,718 to $2,517,522, or 86.9% of North American Towable net sales, for the nine months ended April 30, 2025 compared to $2,437,804, or 88.7% of North American Towable net sales, for the nine months ended April 30, 2024. Changes in material, labor, freight-out and warranty costs comprised $76,448 of the $79,718 increase in cost of products sold. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales were 78.9% for the nine months ended April 30, 2025 compared to 80.4% for the nine months ended April 30, 2024, with the reduction including a decrease in the material cost percentage from the combined favorable impacts of lower sales discounting and cost-saving initiatives, and both the freight-out and warranty cost percentage also improved.
Total manufacturing overhead increased $3,270 in correlation with the increase in sales and decreased as a percentage of North American Towable net sales from 8.3% to 8.0%.
The increase of $68,389 in North American Towable gross profit for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was driven by the increase in North American Towable net sales and the increase in the gross profit percentage is due to the decrease in the cost of products sold percentage noted above.
The increase of $12,015 in North American Towable selling, general and administrative expenses for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the impact of the increase in North American Towable net sales and income before income taxes, which caused related commissions, incentive and other compensation to increase by $9,747. The slight increase in the overall selling, general and administrative expense as a percentage of North American Towable net sales is primarily due to an increase in the incentive compensation cost percentage due to the increase in income before income taxes.
The increase of $54,241 in North American Towable income before income taxes for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the increase in North American Towable net sales, and the primary reason for the increase in percentage was the decrease in the cost of products sold percentage noted above.
NORTH AMERICAN MOTORIZED RECREATIONAL VEHICLES
Analysis of the change in net sales for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024:
Nine Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Nine Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change
Amount 		%
Change
NET SALES:
North American Motorized
Class A $ 479,368 29.6 $ 597,559 31.0 $ (118,191) (19.8)
Class C 778,810 48.1 922,388 47.8 (143,578) (15.6)
Class B 360,014 22.3 408,584 21.2 (48,570) (11.9)
Total North American Motorized $ 1,618,192 100.0 $ 1,928,531 100.0 $ (310,339) (16.1)
Nine Months Ended
April 30, 2025 		% of
Segment
Shipments 		Nine Months Ended
April 30, 2024 		% of
Segment
Shipments 		Change
Amount 		%
Change
# OF UNITS:
North American Motorized
Class A 2,594 20.3 2,995 20.0 (401) (13.4)
Class C 7,190 56.3 8,451 56.4 (1,261) (14.9)
Class B 2,990 23.4 3,538 23.6 (548) (15.5)
Total North American Motorized 12,774 100.0 14,984 100.0 (2,210) (14.7)
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES: %
Change
North American Motorized
Class A (6.4)
Class C (0.7)
Class B 3.6
Total North American Motorized (1.4)
The decrease in total North American Motorized net sales of 16.1% compared to the prior-year period resulted from a 14.7% decrease in unit shipments and a 1.4% decrease in the overall net price per unit due to the combined impact of changes in product mix and price, which included elevated sales discounts compared to the prior-year period. The decrease in unit shipments was primarily due to a softening in current dealer and consumer demand in comparison with the demand in the prior-year period. According to statistics published by RVIA, for the nine months ended April 30, 2025, combined North American motorhome wholesale unit shipments decreased 17.9% compared to the same period last year. According to statistics published by Stat Surveys, for the nine-month periods ended March 31, 2025 and 2024, our North American market share for motorhomes was 46.7% and 48.1%, respectively. Comparisons of Company shipments to industry shipments on an interim basis would not necessarily be indicative of the results expected for a full fiscal year.
The decrease in the overall net price per unit within the Class A product line of 6.4%, was primarily due to product mix changes, primarily a higher concentration in the current-year period of the more moderately-priced gas units as opposed to the higher-priced diesel units, in addition to higher discounting levels. The slight decrease in the overall net price per unit within the Class C product line of 0.7% was primarily due to higher discounting levels, and the Class B product line increase of 3.6% was primarily due to increases from product mix changes and selective net selling price increases being partially offset by higher discounting levels since the prior-year period.
North American Motorized cost of products sold decreased $246,238 to $1,470,427, or 90.9% of North American Motorized net sales, for the nine months ended April 30, 2025 compared to $1,716,665, or 89.0% of North American Motorized net sales, for the nine months ended April 30, 2024. Changes in material, labor, freight-out and warranty costs comprised $230,211 of the $246,238 decrease. Material, labor, freight-out and warranty costs as a combined percentage of North American Motorized net sales increased to 84.6% for the nine months ended April 30, 2025 compared to 82.9% for the nine months ended April 30, 2024, with the increase due to an increase in the material cost percentage, primarily due to higher sales discounting and product mix changes, partially offset by a decrease in the warranty cost percentage.
Total manufacturing overhead decreased $16,027 with the decrease in net sales but increased slightly as a percentage of North American Motorized net sales from 6.1% to 6.3% as the decrease in net sales levels resulted in higher overhead costs per unit sold.
The decrease of $64,101 in North American Motorized gross profit for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was driven by the decrease in North American Motorized net sales, and the decrease in the gross profit percentage is due to the increase in the cost of products sold percentage noted above.
The decrease of $12,024 in North American Motorized selling, general and administrative expenses for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the decreases in North American Motorized net sales and income before income taxes, which caused related commissions, incentive and other compensation to decrease by $11,008. The increase in the overall selling, general and administrative expense as a percentage of North American Motorized net sales was primarily due to the decrease in North American Motorized net sales.
The decrease of $50,422 in North American Motorized income before income taxes for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the decrease in North American Motorized net sales, and the primary reason for the decrease in percentage was the increase in the cost of products sold percentage noted above.
EUROPEAN RECREATIONAL VEHICLES
Analysis of the change in net sales for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024:
Nine Months Ended
April 30, 2025 		% of
Segment
Net Sales 		Nine Months Ended
April 30, 2024 		% of
Segment
Net Sales 		Change Amount %
Change
NET SALES:
European
Motorcaravan $ 1,135,416 54.0 $ 1,263,814 52.2 $ (128,398) (10.2)
Campervan 591,407 28.2 755,783 31.2 (164,376) (21.7)
Caravan 134,334 6.4 180,093 7.4 (45,759) (25.4)
Other 239,753 11.4 221,866 9.2 17,887 8.1
Total European $ 2,100,910 100.0 $ 2,421,556 100.0 $ (320,646) (13.2)
Nine Months Ended
April 30, 2025 		% of
Segment
Shipments 		Nine Months Ended
April 30, 2024 		% of
Segment
Shipments 		Change Amount %
Change
# OF UNITS:
European
Motorcaravan 15,088 47.8 16,714 41.4 (1,626) (9.7)
Campervan 10,948 34.7 16,316 40.5 (5,368) (32.9)
Caravan 5,536 17.5 7,305 18.1 (1,769) (24.2)
Total European 31,572 100.0 40,335 100.0 (8,763) (21.7)
IMPACT OF CHANGES IN FOREIGN CURRENCY, PRODUCT MIX AND PRICE ON NET SALES:
Foreign Currency % Mix and Price % %
Change
European
Motorcaravan (0.1) (0.4) (0.5)
Campervan (0.1) 11.3 11.2
Caravan (0.1) (1.1) (1.2)
Total European (0.1) 8.6 8.5
The decrease in total European Recreational Vehicle net sales of 13.2% compared to the prior-year period resulted from a decrease of 21.7% in unit shipments offset in part by an increase of 8.5% in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price. The decrease in European Recreational Vehicle net sales of $320,646 includes a decrease of $1,393, or 0.1% of the 13.2% decrease, due to the decrease in foreign exchange rates since the prior-year period. According to the most recently published statistics from the European Caravan Federation, our combined European market share for the nine-month periods ended March 31, 2025 and 2024 was approximately 22.7% and 21.7%, respectively.
The overall net price per unit increase of 8.5% included a decrease of 0.1% due to the impact of foreign currency exchange rate changes and a constant-currency increase of 8.6% due to the combined impact of product mix and selling price increases, primarily due to the much higher concentration of Motorcaravan sales in the current-year period due primarily to improved supply of chassis and other components in the current-year period compared to the prior-year period.
The constant-currency decreases in the Motorcaravan product line of 0.4% and in the Caravan product line of 1.1% were both primarily due to the impact of increased sales discounting. The constant-currency increase in the overall net price per unit within the Campervan product line of 11.3% was primarily due to the current-year period including a higher concentration of Campervan units with a purchased chassis that is included in the unit sales price as opposed to a customer-supplied chassis that is not included in the unit sales price.
European Recreational Vehicle cost of products sold decreased $231,985 to $1,784,503, or 84.9% of European Recreational Vehicle net sales, for the nine months ended April 30, 2025 compared to $2,016,488, or 83.3% of European Recreational Vehicle net sales, for the nine months ended April 30, 2024. Changes in material, labor, freight-out and warranty costs comprised $226,415 of the $231,985 decrease. Material, labor, freight-out and warranty costs as a combined percentage of European Recreational Vehicle net sales increased to 73.0% for the nine months ended April 30, 2025 compared to 72.7% for the nine months ended April 30, 2024, with the increase primarily due to an increase in the material cost percentage due to increased sales discounting.
Total manufacturing overhead decreased with the decrease in European Recreational Vehicle net sales but increased as a percentage of European Recreational Vehicle net sales from 10.6% to 11.9% primarily due to the sales decrease resulting in higher overhead costs per unit sold.
The decrease of $88,661 in European Recreational Vehicle gross profit for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the decrease in European Recreational Vehicle net sales, and the decrease in gross profit percentage was primarily due to the increase in the manufacturing overhead percentage noted above.
The increase of $5,841 in European Recreational Vehicle selling, general and administrative expenses for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to a combined total of $6,822 in employee separation costs and an increase in repurchase and dealer financing costs of $4,762. These increases were partially offset by the impact of the decrease in European Recreational Vehicle net sales and income before income taxes, which caused related commissions, incentive and other compensation to decrease by $3,576 and professional fees decreased $2,533.
The decrease of $94,520 in European Recreational Vehicle income before income taxes for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the impact of the 13.2% decrease in European Recreational Vehicle net sales. The primary reasons for the decrease in percentage were the increases in both the cost of products sold and selling, general and administrative expense percentages noted above.
Liquidity and Capital Resources
As of April 30, 2025, we had $508,321 in cash and cash equivalents, of which $363,230 was held in the U.S. and the equivalent of $145,091, predominantly in Euros, was held in Europe, compared to $501,316 on July 31, 2024, of which $373,031 was held in the U.S. and the equivalent of $128,285, predominantly in Euros, was held in Europe. Cash and cash equivalents held internationally may be subject to foreign withholding taxes if repatriated to the U.S. The components of the $7,005 increase in cash and cash equivalents are described in more detail below, but the increase was primarily attributable to cash provided by operations of $319,249 being mostly offset by cash used in investing activities of $67,342 and cash used in financing activities of $244,090.
Net working capital at April 30, 2025 was $1,180,697 compared to $1,083,005 at July 31, 2024. Capital expenditures of $85,050 for the nine months ended April 30, 2025 were made primarily for production building additions and improvements and replacing machinery and equipment used in the ordinary course of business.
We strive to maintain adequate cash balances to ensure we have sufficient resources to respond to opportunities and changing business conditions. In addition, the unused availability under our revolving asset-based credit facility is generally available to the Company for general operating purposes and approximated $985,000 at April 30, 2025. We believe our on-hand cash and cash equivalents and funds generated from operations, along with funds available under the revolving asset-based credit facility, will be sufficient to fund expected operational requirements for the foreseeable future.
Our priorities for the use of current and future available cash generated from operations remain consistent with our history, and include reducing our indebtedness, maintaining and, over time, growing our dividend payments and funding our growth, both organically and, opportunistically, through acquisitions. We may also consider strategic and opportunistic repurchases of shares of THOR stock under the share repurchase authorizations as discussed in Note 16 to the Condensed Consolidated Financial Statements, and special dividends based upon market and business conditions and excess cash availability, subject to potential customary limits and restrictions pursuant to our credit facilities, applicable legal limitations and determination by the Company's Board of Directors ("Board"). We believe our on-hand cash and cash equivalents and funds generated from operations will be sufficient to fund expected cash dividend payments and share repurchases for the foreseeable future.
Our current estimate of committed and internally approved capital spend for the remainder of fiscal 2025 is approximately $50,000, primarily for certain building projects as well as replacing and upgrading machinery, equipment and other assets throughout our facilities to be used in the ordinary course of business. We anticipate approximately one-half will be in North America and one-half in Europe, and that these expenditures will be funded by cash provided by our operating activities.
Our Board currently intends to continue regular quarterly cash dividend payments in the future. As is customary under credit facilities, certain actions, including our ability to pay dividends, are subject to the satisfaction of certain conditions prior to payment. The conditions for the payment of dividends under the existing debt facilities include a minimum level of adjusted excess cash availability and a fixed charge coverage ratio test, both as defined in the credit agreements. The declaration of future dividends and the establishment of the per share amounts, record dates and payment dates for any such future dividends are subject to the determination of the Board, and will be dependent upon future earnings, cash flows and other factors, in addition to compliance with any then-existing financing facilities.
Operating Activities
Net cash provided by operating activities for the nine months ended April 30, 2025 was $319,249 as compared to net cash provided by operating activities of $207,532 for the nine months ended April 30, 2024.
For the nine months ended April 30, 2025, net income adjusted for non-cash items (primarily depreciation, amortization of intangibles and stock-based compensation) provided $353,812 of operating cash. The change in net working capital resulted in a net use of $34,563 of operating cash during that period, primarily due to required income tax payments during the period exceeding the income tax provision for the period, as the net cash impact on the changes in accounts receivable and accounts payable was minimal.
For the nine months ended April 30, 2024, net income adjusted for non-cash items (primarily depreciation, amortization of intangibles and stock-based compensation) provided $392,784 of operating cash. The change in working capital resulted in the net use of $185,252 of operating cash during that period, primarily due to a seasonal increase in trade accounts receivable, required income tax payments during the period exceeding the income tax provision for the period, and a decrease in certain accrued liabilities as a result of the reduction in sales and production when compared to the prior-year period.
Investing Activities
Net cash used in investing activities for the nine months ended April 30, 2025 was $67,342, primarily due to capital expenditures of $85,050 partially offset by proceeds from the dispositions of property, plant and equipment of $22,093.
Net cash used in investing activities for the nine months ended April 30, 2024 was $102,889, primarily due to capital expenditures of $106,069.
Financing Activities
Net cash used in financing activities for the nine months ended April 30, 2025 was $244,090, primarily for debt payments on the term-loan credit facilities of $110,000 and on other debt of $29,167 as well as regular quarterly dividend payments of $0.50 per share for each of the first three quarters of fiscal 2025 totaling $79,755.
Net cash used in financing activities for the nine months ended April 30, 2024 was $173,327, which included borrowings of $113,502 on the asset-based credit facility for temporary working capital needs and subsequent payments of $111,555 on the asset-based credit facility. In addition, borrowings of $186,723 were made in connection with the November 2023 debt refinancing as discussed in Note 12 to the Condensed Consolidated Financial Statements, and payments totaling $227,626 were made on the term-loan credit facilities, of which $127,626 was paid in connection with the debt refinancing. Treasury share repurchases of $43,034 were made and regular quarterly dividend payments of $0.48 per share for each of the first three quarters of fiscal 2024 were also made totaling $76,730.
The Company increased its previous regular quarterly dividend of $0.48 per share to $0.50 per share in October 2024. In October 2023, the Company increased its previous regular quarterly dividend of $0.45 per share to $0.48 per share.
Accounting Standards
See Note 1 in the Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part 1 of this Quarterly Report on Form 10-Q.
Critical Accounting Estimates
For a discussion of our critical accounting estimates, refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 and the notes to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended July 31, 2024. There have been no material changes to our critical accounting estimates since our Annual Report on Form 10-K for the year ended July 31, 2024.
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