Thor Industries Inc.

03/03/2026 | Press release | Distributed by Public on 03/03/2026 05:34

Quarterly Report for Quarter Ending January 31, 2026 (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, trade, 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 ability to realize anticipated benefits of strategic realignments or other reorganizational actions;
•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, including confidential and personal information, 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 adverse weather conditions and/or weather-related events;
•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, 2025.
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 calendar year ended December 31, 2025, THOR's current combined U.S. and Canadian market share based on units sold was approximately 38.6% for travel trailers and fifth wheels combined and approximately 47.5% for motorhomes. In Europe, according to the European Caravan Federation ("ECF"), our European market share for the calendar year ended December 31, 2025 was approximately 25.5% for motorcaravans and campervans combined and approximately 16.8% 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 January 31, 2026 decreased 8.2% to approximately 79,100 units, compared to approximately 86,200 units as of January 31, 2025.
As of January 31, 2026, we believe North American dealer inventory levels for most products are generally in line with the levels that dealers are comfortable stocking 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 January 31, 2026 decreased $534,805, or 24.3%, to $1,663,688 compared to $2,198,493 as of January 31, 2025. The decrease in backlog is primarily a result of a decrease in year-over-year orders for North American Towable products, as North American Motorized backlog was similar to the prior year.
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 Year Increase %
2025 2024 (Decrease) Change
North American Towable units 306,191 298,842 7,349 2.5
North American Motorized units 36,029 34,891 1,138 3.3
Total 342,220 333,733 8,487 2.5
In December 2025, RVIA issued a revised forecast for calendar year 2026 North American wholesale unit shipments. Under RVIA's most likely scenario, towable and motorized unit shipments are projected to be approximately 311,900 units and 37,100 units, respectively, for an annual total of approximately 349,000 units, up 2.0% from the 2025 calendar year wholesale shipments. The RVIA's most likely forecast for calendar year 2026 of 349,000 total units could range from a lower estimate of approximately 332,100 total units to an upper estimate of approximately 366,000 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 Year Increase %
2025 2024 (Decrease) Change
North American Towable units 312,022 315,953 (3,931) (1.2)
North American Motorized units 37,725 40,028 (2,303) (5.8)
Total 349,747 355,981 (6,234) (1.8)
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.
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 grow from the current levels as consumer confidence and general economic conditions improve, as 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 both short, frequent breaks or longer adventures.
Company North American Wholesale Statistics
The Company's North American wholesale RV shipments, for the calendar years ended December 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 Year Increase %
2025 2024 (Decrease) Change
North American Towable units 111,607 116,913 (5,306) (4.5)
North American Motorized units 18,836 16,099 2,737 17.0
Total 130,443 133,012 (2,569) (1.9)
Company North American Retail Statistics
Retail statistics of the Company's North American RV products, as reported by Stat Surveys, for the calendar years ended December 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 Year Increase %
2025 2024 (Decrease) Change
North American Towable units 117,778 119,924 (2,146) (1.8)
North American Motorized units 17,903 18,885 (982) (5.2)
Total 135,681 138,809 (3,128) (2.3)
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 2026. In addition, due to the impact of inflationary pressures, including the impact from 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, particularly in the fall and winter months which historically are lower retail sales periods. 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 our fiscal 2026 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 were 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 prefer 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 and effect of U.S. tariffs on imports, including the impact of the recently announced opinion by the U.S. Supreme Court addressing the legality of certain tariffs introduced in the last year, the potential for refunds of tariffs imposed under the International Emergency Economic Powers Act as a consequence of the Supreme Court decision, and the current administration's announcement of its intention to impose new tariffs. We are also monitoring potential retaliatory tariffs or other measures certain other countries have already or may impose on U.S. imports into those countries, that may increase our material costs, disrupt our supply of materials or negatively impact our sales into other countries. The impact of increased or new tariffs on our fiscal 2026 first and second quarter results was relatively modest due to the timing of, and changes in, both the announced tariff rates and their effective dates and our engagement with our vendors regarding the extent and timing of any resultant cost increases. While we anticipate that tariffs will continue to affect our business and financial results, there is significant uncertainty as to the ultimate impact tariffs and tariff-related matters may have on our business and our remaining fiscal 2026 results given the rapidly changing environment surrounding tariffs in general, in addition to other related political topics. As an additional consideration, we are often not importing products or components directly, but rather through third-party vendors, meaning we do not have complete visibility regarding the timing or impact of tariffs on the pricing of those components. 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. We also intend to seek refunds for tariffs previously paid, however, the amount of any such refunds at this time has not been quantified, and the timing of the receipt of any such refunds is highly uncertain.
Historically, we have generally been able to offset net cost increases over time, but given the size and nature of the tariffs implemented since early calendar 2025 and any future tariffs, it makes it more difficult and likely less 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.
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 of tariffs, regulatory changes or supply chain constraints on the availability of chassis or other components. Modifying available chassis for certain motorized products to use for other products is generally 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, and with little advance notice, given the current and potential future impact tariffs and other macroeconomic or political factors 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 17.2% and 10.3% of the caravan and motorcaravan (including campervans) European market for the calendar year ended December 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 January 31, 2026 decreased 9.3% to approximately 23,300 units as compared to approximately 25,700 units as of January 31, 2025. 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 and campervan European products are generally in line with historical seasonal levels, while urban vehicle and caravan inventory remains slightly elevated, but improving.
THOR's European RV backlog as of January 31, 2026 increased $188,087, or 11.4%, to $1,832,102 compared to $1,644,015 as of January 31, 2025, primarily due to the increase in the foreign currency exchange rate between the two periods.
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 Year % Calendar Year %
2025 2024 Change 2025 2024 Change
OEM Reporting Countries (1)
139,307 138,743 0.4 42,255 46,628 (9.4)
Non-OEM Reporting Countries (1)
22,062 21,599 2.1 11,987 14,237 (15.8)
Total 161,369 160,342 0.6 54,242 60,865 (10.9)
(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 Year Increase %
2025 2024 (Decrease) Change
Motorcaravan and Campervan 35,586 34,506 1,080 3.1
Caravan 7,080 8,398 (1,318) (15.7)
Total OEM-Reporting Countries 42,666 42,904 (238) (0.6)
(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. In the short term we expect to experience relatively stable market volume but ongoing pressure on overall sales prices due to the current economic environment. Our long-term outlook for future growth in European RV retail sales remains optimistic due to favorable demographic trends and due to more people utilizing 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 2026 CMT Show in Stuttgart in late January 2026, experienced near-record attendance, which demonstrates the continued high level of interest in the RV lifestyle. In addition to our attendance at various strategic trade fairs, we 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, which may be material depending on the size of the workforce reduction. Raw 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.
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 January 31, 2026 Compared to the Three Months Ended January 31, 2025
NET SALES: Three Months Ended
January 31, 2026 		Three Months Ended
January 31, 2025 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 710,485 $ 828,266 $ (117,781) (14.2)
North American Motorized 577,071 446,298 130,773 29.3
Total North America 1,287,556 1,274,564 12,992 1.0
European 684,472 612,465 72,007 11.8
Total recreational vehicles 1,972,028 1,887,029 84,999 4.5
Other 223,665 185,653 38,012 20.5
Intercompany eliminations (69,837) (54,575) (15,262) (28.0)
Total $ 2,125,856 $ 2,018,107 $ 107,749 5.3
# OF UNITS:
Recreational vehicles
North American Towable 21,577 28,013 (6,436) (23.0)
North American Motorized 4,524 3,526 998 28.3
Total North America 26,101 31,539 (5,438) (17.2)
European 9,465 9,442 23 0.2
Total 35,566 40,981 (5,415) (13.2)
GROSS PROFIT: % of
Segment
Net Sales 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 75,498 10.6 $ 91,646 11.1 $ (16,148) (17.6)
North American Motorized 54,640 9.5 34,741 7.8 19,899 57.3
Total North America 130,138 10.1 126,387 9.9 3,751 3.0
European 75,129 11.0 80,929 13.2 (5,800) (7.2)
Total recreational vehicles 205,267 10.4 207,316 11.0 (2,049) (1.0)
Other, net 45,987 20.6 37,881 20.4 8,106 21.4
Total $ 251,254 11.8 $ 245,197 12.1 $ 6,057 2.5
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Recreational vehicles
North American Towable $ 50,079 7.0 $ 59,333 7.2 $ (9,254) (15.6)
North American Motorized 31,169 5.4 27,033 6.1 4,136 15.3
Total North America 81,248 6.3 86,366 6.8 (5,118) (5.9)
European 78,547 11.5 67,296 11.0 11,251 16.7
Total recreational vehicles 159,795 8.1 153,662 8.1 6,133 4.0
Other, net 22,148 9.9 19,420 10.5 2,728 14.0
Corporate 30,078 - 33,140 - (3,062) (9.2)
Total $ 212,021 10.0 $ 206,222 10.2 $ 5,799 2.8
INCOME (LOSS) BEFORE INCOME TAXES: Three Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Three Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 31,195 4.4 $ 28,152 3.4 $ 3,043 10.8
North American Motorized 20,904 3.6 4,298 1.0 16,606 386.4
Total North America 52,099 4.0 32,450 2.5 19,649 60.6
European (12,308) (1.8) 2,210 0.4 (14,518) n/m
Total recreational vehicles 39,791 2.0 34,660 1.8 5,131 14.8
Other, net 15,433 6.9 8,268 4.5 7,165 86.7
Corporate (34,232) - (44,528) - 10,296 23.1
Total $ 20,992 1.0 $ (1,600) (0.1) $ 22,592 n/m

ORDER BACKLOG: 		As of
January 31, 2026 		As of
January 31, 2025 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 621,461 $ 1,073,758 $ (452,297) (42.1)
North American Motorized 1,042,227 1,124,735 (82,508) (7.3)
Total North America 1,663,688 2,198,493 (534,805) (24.3)
European 1,832,102 1,644,015 188,087 11.4
Total $ 3,495,790 $ 3,842,508 $ (346,718) (9.0)
CONSOLIDATED
Consolidated net sales for the three months ended January 31, 2026 increased $107,749, or 5.3%, compared to the three months ended January 31, 2025. Approximately 32.2% of the Company's consolidated net sales for the quarter ended January 31, 2026 were transacted in a currency other than the U.S. dollar. The Company's most material exchange rate exposure is sales in Euros. The $107,749 increase in consolidated net sales includes an increase of $69,424 from the change in foreign 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 January 31, 2026 increased $6,057, or 2.5%, compared to the three months ended January 31, 2025. Consolidated gross profit was 11.8% of consolidated net sales for the three months ended January 31, 2026 and 12.1% for the three months ended January 31, 2025. The increase in gross profit was primarily due to the impact of the increase in consolidated net sales in the current-year quarter compared to the prior-year quarter while the decrease in gross profit percentage was primarily due to a higher concentration of motorized sales in the current year, which have a higher material percentage than towable product primarily due to the chassis content, and unfavorable changes in European product mix.
Selling, general and administrative expenses for the three months ended January 31, 2026 increased $5,799, or 2.8%, compared to the three months ended January 31, 2025, primarily due to certain employee separation costs in the European Recreational Vehicle segment in the current-year quarter.
The increase in Other income, net of $18,357 for the three months ended January 31, 2026 as compared to the three months ended January 31, 2025 is primarily due to both an increase of $9,162 on the gains on the sales of property, plant and equipment, primarily within the North American Towable segment, and includes the favorable change in consolidated foreign currency gains of $5,842 between the two periods.
The increase of $22,592 in income before income taxes for the three months ended January 31, 2026 as compared to the three months ended January 31, 2025 was primarily driven by the increase in Other income, net noted above.
The overall effective income tax rate for the three months ended January 31, 2026 was 30.3% compared with (93.1)% for the three months ended January 31, 2025. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of the non-deductible foreign exchange losses not subject to taxation in the three months ending January 31, 2025, which had a greater percentage impact on the effective income tax rate. The rate for the three months ending January 31, 2026 was negatively impacted by certain losses in foreign jurisdictions without an associated tax benefit and changes in statutory tax rates in certain foreign jurisdictions. This negative impact was partially offset by foreign exchange gains not subject to taxation in the three months ending January 31, 2026.
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 $3,062 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025, with the primary change being a decrease of $1,904 in research and development costs.
Net expense included in Corporate interest and other income and expense decreased $7,234 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025, which included a favorable change of $3,661 in the non-cash foreign currency adjustments related to certain Euro-denominated loans compared to the prior-year quarter. In addition, there was a decrease of $2,012 in net interest expense due to lower overall average outstanding debt balances and lower overall interest rates and the recorded operating results of our equity investments, as discussed in Note 8 to the Condensed Consolidated Financial Statements, improved by $1,611.
Segment Reporting
NORTH AMERICAN TOWABLE RECREATIONAL VEHICLES
Analysis of the change in net sales for the three months ended January 31, 2026 compared to the three months ended January 31, 2025:
Three Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Three Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change Amount
%
Change
NET SALES:
North American Towable
Travel Trailers $ 403,599 56.8 $ 518,620 62.6 $ (115,021) (22.2)
Fifth Wheels 306,886 43.2 309,646 37.4 (2,760) (0.9)
Total North American Towable $ 710,485 100.0 $ 828,266 100.0 $ (117,781) (14.2)
Three Months Ended
January 31, 2026 		% of
Segment
Shipments 		Three Months Ended
January 31, 2025 		% of
Segment
Shipments 		Change Amount
%
Change
# OF UNITS:
North American Towable
Travel Trailers 16,608 77.0 23,140 82.6 (6,532) (28.2)
Fifth Wheels 4,969 23.0 4,873 17.4 96 2.0
Total North American Towable 21,577 100.0 28,013 100.0 (6,436) (23.0)
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:
%
Change
North American Towable
Travel Trailers 6.0
Fifth Wheels (2.9)
Total North American Towable 8.8
The decrease in total North American Towable net sales of 14.2% compared to the prior-year quarter resulted from a 23.0% decrease in unit shipments partially offset by an 8.8% increase in the overall net price per unit due to the combined impact of changes in product mix and price. The decrease in unit shipments is primarily due to lower demand for the lower-cost travel trailer units relative to the prior-year quarter, as travel trailer unit shipments decreased 28.2% from the prior-year quarter. According to statistics published by RVIA, for the three months ended January 31, 2026, combined North American travel trailer and fifth wheel wholesale unit shipments decreased 8.4% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended December 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 36.2% and 36.1%, 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 increase in the overall net price per unit within the travel trailer product line of 6.0% and the decrease within the fifth wheel product line of 2.9% were primarily due to product mix changes as compared to the prior-year quarter. The increase in the overall net price in the North American Towable segment of 8.8% was primarily due to the greater percentage of sales of the higher-priced fifth wheel units as compared to travel trailer units in the current-year quarter.
North American Towable cost of products sold decreased $101,633 to $634,987, or 89.4% of North American Towable net sales, for the three months ended January 31, 2026 compared to $736,620, or 88.9% of North American Towable net sales, for the three months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $96,121 of the $101,633 decrease in cost of products sold and decreased primarily due to the decrease in North American Towable net sales. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales decreased slightly to 79.6% for the three months ended January 31, 2026 compared to 79.8% for the three months ended January 31, 2025, primarily due to a decrease in the warranty cost percentage being mostly offset by an increase in the material cost percentage.
Total manufacturing overhead decreased $5,512, primarily due to the decrease in net sales and employee cost savings from the towable organizational restructuring initiatives implemented since the prior-year quarter, but increased as a percentage of North American Towable net sales from 9.1% to 9.8% as the decreased net sales levels resulted in higher overhead costs per unit sold.
The decrease in North American Towable gross profit of $16,148 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was driven by the decrease in North American Towable 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 in North American Towable selling, general and administrative expenses of $9,254 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was primarily due to a decrease of $4,670 in commissions and other employee compensation cost due to the decrease in North American Towable net sales and cost savings from the towable organizational restructuring initiatives noted above. Incentive compensation also decreased $3,598. These decreases were partially offset by an increase in sales-related travel, advertising and promotional costs of $1,126. The overall selling, general and administrative expense as a percentage of North American Towable net sales decreased 0.2% due to the cost savings noted above.
The increase in North American Towable income before income taxes of $3,043 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 included the decrease in North American Towable gross profit noted above being more than offset by the reduction in selling, general and administrative expenses noted above and an increase in other income of $9,355, primarily from increased gains on the sales of assets relative to the Towable segment. North American Towable income before income taxes as a percentage of North American Towable net sales increased primarily due to the increase in other income as a percentage of net sales.
NORTH AMERICAN MOTORIZED RECREATIONALVEHICLES
Analysis of the change in net sales for the three months ended January 31, 2026 compared to the three months ended January 31, 2025:
Three Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Three Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change
Amount
%
Change
NET SALES:
North American Motorized
Class A $ 169,898 29.4 $ 148,009 33.2 $ 21,889 14.8
Class C 297,219 51.5 204,053 45.7 93,166 45.7
Class B 109,954 19.1 94,236 21.1 15,718 16.7
Total North American Motorized $ 577,071 100.0 $ 446,298 100.0 $ 130,773 29.3
Three Months Ended
January 31, 2026 		% of
Segment
Shipments 		Three Months Ended
January 31, 2025 		% of
Segment
Shipments 		Change
Amount
%
Change
# OF UNITS:
North American Motorized
Class A 841 18.6 847 24.0 (6) (0.7)
Class C 2,744 60.7 1,902 53.9 842 44.3
Class B 939 20.7 777 22.1 162 20.8
Total North American Motorized 4,524 100.0 3,526 100.0 998 28.3
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:
%
Change
North American Motorized
Class A 15.5
Class C 1.4
Class B (4.1)
Total North American Motorized 1.0
The increase in total North American Motorized net sales of 29.3% compared to the prior-year quarter resulted from a 28.3% increase in unit shipments and a 1.0% increase in the overall net price per unit due to the impact of changes in product mix and price. The increase in unit shipments is primarily due to an increase in current dealer and consumer demand in comparison with the demand in the prior-year quarter. According to statistics published by RVIA, for the three months ended January 31, 2026, combined North American motorhome wholesale unit shipments increased 5.7% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended December 31, 2025 and 2024, our North American market share for motorhomes was 45.9% and 46.1%, 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 increase in the overall net price per unit within the Class A product line of 15.5% was primarily due to a higher concentration of sales of the generally higher-priced diesel units as opposed to the more moderately-priced gas units in the current-year quarter compared to the prior-year quarter. The modest increase in the overall net price per unit within the Class C product line of 1.4% was primarily due to product mix changes. The decrease in the overall net price per unit within the Class B product line of 4.1% was primarily due to product mix changes towards more moderately-priced units compared to the prior-year quarter.
North American Motorized cost of products sold increased $110,874 to $522,431, or 90.5% of North American Motorized net sales, for the three months ended January 31, 2026 compared to $411,557, or 92.2% of North American Motorized net sales, for the three months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $105,944 of the overall $110,874 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 decreased to 83.8% for the three months ended January 31, 2026 compared to 84.6% for the three months ended January 31, 2025, with the decrease mainly due to a decrease in the direct labor cost percentage.
Total manufacturing overhead increased $4,930 in correlation with the net sales increase but decreased as a percentage of North American Motorized net sales from 7.6% to 6.7% as the increase in net sales levels resulted in lower overhead costs per unit sold.
The increase in North American Motorized gross profit of $19,899 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was driven by the increase in North American Motorized 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 Motorized selling, general and administrative expenses of $4,136 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was primarily due to the increases in North American Motorized net sales and income before income taxes, which caused related commissions, incentive and other compensation to increase by $3,616. 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 increase in North American Motorized income before income taxes of $16,606 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was primarily due to the increase in North American Motorized net sales, and the primary reasons for the increase in percentage were the decreases in both the cost of products sold and selling, general and administrative expense percentages noted above.
EUROPEAN RECREATIONAL VEHICLES
Analysis of the change in net sales for the three months ended January 31, 2026 compared to the three months ended January 31, 2025:
Three Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Three Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change
Amount
%
Change
NET SALES:
European
Motorcaravan $ 391,940 57.3 $ 335,646 54.8 $ 56,294 16.8
Campervan 188,257 27.5 165,964 27.1 22,293 13.4
Caravan 34,275 5.0 42,180 6.9 (7,905) (18.7)
Other 70,000 10.2 68,675 11.2 1,325 1.9
Total European $ 684,472 100.0 $ 612,465 100.0 $ 72,007 11.8
Three Months Ended
January 31, 2026 		% of
Segment
Shipments 		Three Months Ended
January 31, 2025 		% of
Segment
Shipments 		Change
Amount
%
Change
# OF UNITS:
European
Motorcaravan 4,767 50.4 4,471 47.4 296 6.6
Campervan 3,247 34.3 3,138 33.2 109 3.5
Caravan 1,451 15.3 1,833 19.4 (382) (20.8)
Total European 9,465 100.0 9,442 100.0 23 0.2
IMPACT OF CHANGES IN FOREIGN CURRENCY, PRODUCT MIX AND PRICE ON NET SALES:
Foreign Currency % Mix and Price % %
Change
European
Motorcaravan 11.4 (1.2) 10.2
Campervan 11.4 (1.5) 9.9
Caravan 11.4 (9.3) 2.1
Total European 11.4 0.2 11.6
The increase in total European Recreational Vehicle net sales of 11.8% compared to the prior-year quarter resulted from a 0.2% increase in unit shipments and an 11.6% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and selling prices. The increase in European Recreational Vehicle net sales of $72,007 includes an increase of $69,424, or 11.4% of the 11.8% increase, due to the increase in foreign currency 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 December 31, 2025 and 2024 was approximately 20.3% and 22.0%, 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 overall net price per unit increase of 11.6% includes an 11.4% increase due to the impact of foreign currency exchange rate changes and a 0.2% constant-currency increase due to the combined impact of product mix and price, primarily due to the slightly higher concentration of Motorcaravan sales in the current-year quarter.
The constant-currency decrease in the overall net price per unit within the Motorcaravan product line of 1.2% was primarily due to a higher concentration of sales of lower-priced entry level and special-edition motorcaravan products in the current-year quarter. The constant-currency decrease in the overall net price per unit within the Campervan product line of 1.5% was primarily due to the current-year quarter including a lower 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 9.3% was primarily due to increased sales discounting.
European Recreational Vehicle cost of products sold increased $77,807 to $609,343, or 89.0% of European Recreational Vehicle net sales, for the three months ended January 31, 2026 compared to $531,536, or 86.8% of European Recreational Vehicle net sales, for the three months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $70,247 of the $77,807 increase primarily due to the increased net sales and the increased material costs noted below. Material, labor, freight-out and warranty costs as a combined percentage of European Recreational Vehicle net sales increased to 76.1% for the three months ended January 31, 2026 compared to 73.6% for the three months ended January 31, 2025, primarily due to an increase in the material cost percentage as a result of the combined unfavorable impacts of increased chassis costs and a higher concentration of sales of entry-level and special-edition motorcaravan products, both of which generally have higher material cost percentages. The warranty cost percentage also increased.
Total manufacturing overhead increased $7,560 with the increase in sales but decreased slightly as a percentage of European Recreational Vehicle net sales from 13.2% to 12.9% as the increase in net sales levels resulted in lower overhead costs per unit sold.
The decrease in European Recreational Vehicle gross profit of $5,800 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 and the decrease in the gross profit percentage were both due to the increase in the cost of products sold noted above.
European Recreational Vehicle selling, general and administrative expenses increased $11,251 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025, primarily due to a total of $4,818 in employee separation costs related to strategic fiscal year 2026 plant reorganization initiatives. In addition, sales wages and benefits increased $1,937 in correlation with the increase in European Recreational Vehicle net sales and professional fees and related RV repurchase costs also increased $1,922. The increase in the overall selling, general and administrative expense as a percentage of European Recreational Vehicle net sales is primarily due to the increased costs noted above.
The decrease in European Recreational Vehicle income (loss) before income taxes of $14,518 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was primarily due to the impact of the increases in cost of products sold and selling, general and administrative expenses as noted above, and the primary reason for the decrease in percentage was the increase in both of those cost percentages as noted above.
Six Months Ended January 31, 2026 Compared to the Six Months Ended January 31, 2025
NET SALES: Six Months Ended
January 31, 2026 		Six Months Ended
January 31, 2025 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 1,607,575 $ 1,727,044 $ (119,469) (6.9)
North American Motorized 1,238,167 951,506 286,661 30.1
Total North America 2,845,742 2,678,550 167,192 6.2
European 1,339,951 1,217,368 122,583 10.1
Total recreational vehicles 4,185,693 3,895,918 289,775 7.4
Other 482,721 379,164 103,557 27.3
Intercompany eliminations (153,435) (114,191) (39,244) (34.4)
Total $ 4,514,979 $ 4,160,891 $ 354,088 8.5
# OF UNITS:
Recreational vehicles
North American Towable 47,384 58,031 (10,647) (18.3)
North American Motorized 9,474 7,267 2,207 30.4
Total North America 56,858 65,298 (8,440) (12.9)
European 18,188 18,077 111 0.6
Total 75,046 83,375 (8,329) (10.0)
GROSS PROFIT: % of
Segment
Net Sales 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 194,493 12.1 $ 204,083 11.8 $ (9,590) (4.7)
North American Motorized 126,262 10.2 77,468 8.1 48,794 63.0
Total North America 320,755 11.3 281,551 10.5 39,204 13.9
European 152,943 11.4 173,577 14.3 (20,634) (11.9)
Total recreational vehicles 473,698 11.3 455,128 11.7 18,570 4.1
Other, net 98,530 20.4 71,511 18.9 27,019 37.8
Total $ 572,228 12.7 $ 526,639 12.7 $ 45,589 8.7
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Recreational vehicles
North American Towable $ 114,437 7.1 $ 123,636 7.2 $ (9,199) (7.4)
North American Motorized 66,747 5.4 57,400 6.0 9,347 16.3
Total North America 181,184 6.4 181,036 6.8 148 0.1
European 170,528 12.7 147,023 12.1 23,505 16.0
Total recreational vehicles 351,712 8.4 328,059 8.4 23,653 7.2
Other, net 43,956 9.1 38,894 10.3 5,062 13.0
Corporate 70,383 - 79,466 - (9,083) (11.4)
Total $ 466,051 10.3 $ 446,419 10.7 $ 19,632 4.4
INCOME (LOSS) BEFORE INCOME TAXES: Six Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Six Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change
Amount 		%
Change
Recreational vehicles
North American Towable $ 77,666 4.8 $ 74,973 4.3 $ 2,693 3.6
North American Motorized 54,053 4.4 13,379 1.4 40,674 304.0
Total North America 131,719 4.6 88,352 3.3 43,367 49.1
European (38,946) (2.9) 3,387 0.3 (42,333) n/m
Total recreational vehicles 92,773 2.2 91,739 2.4 1,034 1.1
Other, net 38,139 7.9 13,042 3.4 25,097 192.4
Corporate (77,432) - (107,537) - 30,105 28.0
Total $ 53,480 1.2 $ (2,756) (0.1) $ 56,236 n/m
CONSOLIDATED
Consolidated net sales for the six months ended January 31, 2026 increased $354,088, or 8.5%, compared to the six months ended January 31, 2025. Approximately 29.7% of the Company's consolidated net sales for the six months ended January 31, 2026 were transacted in a currency other than the U.S. dollar. The Company's most material exchange rate exposure is sales in Euros. The $354,088 increase in consolidated net sales included an increase of $106,921 from the change in foreign 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 six months ended January 31, 2026 increased $45,589 compared to the six months ended January 31, 2025. Consolidated gross profit was 12.7% of consolidated net sales for both the six months ended January 31, 2026 and the six months ended January 31, 2025. The increase in consolidated gross profit was primarily due to the impact of the increase in consolidated net sales in the current-year period compared to the prior-year period while the gross profit percentage remained unchanged.
Selling, general and administrative expenses for the six months ended January 31, 2026 increased $19,632, or 4.4%, compared to the six months ended January 31, 2025. This increase included the impact of the 8.5% increase in consolidated net sales and the increase in income before income taxes, which resulted in higher combined commissions and other incentive compensation costs and sales-related travel, advertising and promotional costs also increased in correlation with the sales increase.
The increase in Other income, net of $18,197 for the six months ended January 31, 2026 as compared to the six months ended January 31, 2025 includes an increase of $10,647 in gains on the dispositions of property, plant and equipment compared to the prior-year period, primarily within the North American Towable segment, the favorable change in consolidated foreign currency gains of $5,724 between the two periods, and the $3,356 favorable change in Corporate 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. In addition, there was a favorable improvement in the operating results of our equity investments of $3,440. These favorable changes were partially offset by an impairment charge of $7,822 taken in the current-year period on certain North American Towable assets held for sale.
The increase of $56,236 in income before income taxes for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily driven by the impact of the increase in consolidated net sales and the increase in other income, net noted above.
The overall effective income tax rate for the six months ended January 31, 2026 was 29.3% compared with (43.7)% for the six months ended January 31, 2025. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of the non-deductible foreign exchange losses not subject to taxation in the six months ended January 31, 2025, which had a greater percentage impact on the effective income tax rate. The rate for the six months ending January 31, 2026 was negatively impacted by certain losses in foreign jurisdictions without an associated tax benefit and changes in statutory tax rates in certain foreign jurisdictions. This negative impact was partially offset by foreign exchange gains not subject to taxation in the six months ending January 31, 2026.
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 $9,083 for the six months ended January 31, 2026 compared to the six months ended January 31, 2025. The decrease included a decrease in compensation costs of $15,860, primarily due to employee separation costs related to certain headcount reductions in the prior-year period, and a decrease in research and development costs of $4,941. These decreases were partially offset by an increase in deferred compensation expense of $3,152 due to market value fluctuations between the two periods, which was primarily offset by the increase in other income related to the deferred compensation plan assets noted below. In addition, there were increases of $3,923 in certain dealer promotional costs and $1,750 in costs related to our standby repurchase obligations reserve due primarily to a favorable adjustment in the prior-year period. Incentive compensation also increased $1,850 due to the increase in income before income taxes compared to the prior-year period.
Net expense from Corporate interest and other income and expense decreased $21,022 for the six months ended January 31, 2026 compared to the six months ended January 31, 2025. Net interest expense decreased by $7,434 primarily due to lower overall average outstanding debt balances and lower overall interest rates and the recorded operating results of our equity investments, as discussed in Note 8 to the Condensed Consolidated Financial Statements, improved by $3,440 in the current-year period as compared to the prior-year period. In addition, there was a favorable change of $3,356 in the fair value of the Company's deferred compensation assets and a favorable change of $5,447 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 six months ended January 31, 2026 compared to the six months ended January 31, 2025:
Six Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Six Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change Amount %
Change
NET SALES:
North American Towable
Travel Trailers $ 909,600 56.6 $ 1,121,315 64.9 $ (211,715) (18.9)
Fifth Wheels 697,975 43.4 605,729 35.1 92,246 15.2
Total North American Towable $ 1,607,575 100.0 $ 1,727,044 100.0 $ (119,469) (6.9)
Six Months Ended
January 31, 2026 		% of
Segment
Shipments 		Six Months Ended
January 31, 2025 		% of
Segment
Shipments 		Change Amount %
Change
# OF UNITS:
North American Towable
Travel Trailers 36,516 77.1 48,598 83.7 (12,082) (24.9)
Fifth Wheels 10,868 22.9 9,433 16.3 1,435 15.2
Total North American Towable 47,384 100.0 58,031 100.0 (10,647) (18.3)
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES: %
Change
North American Towable
Travel Trailers 6.0
Fifth Wheels -
Total North American Towable 11.4
The decrease in total North American Towable net sales of 6.9% compared to the prior-year period resulted from a 18.3% decrease in unit shipments and a 11.4% increase in the overall net price per unit due to the combined impact of changes in product mix and price. The decrease in unit shipments was primarily due to lower demand for the lower-cost travel trailer units relative to the prior-year period, as travel trailer unit shipments decreased 24.9% from the prior-year period. According to statistics published by RVIA, for the six months ended January 31, 2026, combined North American travel trailer and fifth wheel wholesale unit shipments decreased 5.1% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the six-month periods ended December 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 38.0% and 37.7%, 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 increase in the overall net price per unit within the travel trailer product line of 6.0% was primarily due to current product mix changes compared to the prior-year period. The increase in the overall net selling price in the North American Towable segment of 11.4% was primarily due to the greater percentage of sales of the higher-priced fifth wheel units as compared to travel trailer units in the current-year period.
North American Towable cost of products sold decreased $109,879 to $1,413,082, or 87.9% of North American Towable net sales, for the six months ended January 31, 2026 compared to $1,522,961, or 88.2% of North American Towable net sales, for the six months ended January 31, 2025. Changes in material, labor, freight-out and warranty costs comprised $99,816 of the $109,879 decrease in cost of products sold primarily due to the decrease in North American Towable net sales. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales were 79.2% for the six months ended January 31, 2026 compared to 79.5% for the six months ended January 31, 2025, with the slight decrease primarily due to a decrease in the warranty cost percentage being mostly offset by an increase in the material cost percentage.
Total manufacturing overhead decreased $10,063 in correlation with the decrease in net sales and employee cost savings from the towable organizational restructuring initiatives implemented since the prior-year period, but remained the same as a percentage of North American Towable net sales at 8.7% as the decreased net sales levels offset the decrease in overhead costs.
The decrease of $9,590 in North American Towable gross profit for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was driven by the decrease in North American Towable net sales while the increase in the gross profit percentage is due to the decrease in the cost of products sold percentage noted above.
The decrease of $9,199 in North American Towable selling, general and administrative expenses for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily due to a decrease of $7,880 in sales commissions and other employee compensation due to the decrease in North American Towable net sales and cost savings from the towable organizational restructuring initiatives. Incentive compensation also decreased $2,608. These decreases were partially offset by an increase in sales-related travel, advertising and promotional costs of $3,637. The overall selling, general and administrative expense as a percentage of North American Towable net sales decreased 0.1% due to these cost savings.
The increase of $2,693 in North American Towable income before income taxes for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily due to the decrease in North American Towable gross profit being mostly offset by the reduction in selling, general and administrative expenses noted above, while other income increased $2,060. The 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 of net sales.
NORTH AMERICAN MOTORIZED RECREATIONAL VEHICLES
Analysis of the change in net sales for the six months ended January 31, 2026 compared to the six months ended January 31, 2025:
Six Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Six Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change
Amount 		%
Change
NET SALES:
North American Motorized
Class A $ 359,044 29.0 $ 304,585 32.0 $ 54,459 17.9
Class C 626,409 50.6 438,280 46.1 188,129 42.9
Class B 252,714 20.4 208,641 21.9 44,073 21.1
Total North American Motorized $ 1,238,167 100.0 $ 951,506 100.0 $ 286,661 30.1
Six Months Ended
January 31, 2026 		% of
Segment
Shipments 		Six Months Ended
January 31, 2025 		% of
Segment
Shipments 		Change
Amount 		%
Change
# OF UNITS:
North American Motorized
Class A 1,723 18.2 1,603 22.1 120 7.5
Class C 5,628 59.4 3,947 54.3 1,681 42.6
Class B 2,123 22.4 1,717 23.6 406 23.6
Total North American Motorized 9,474 100.0 7,267 100.0 2,207 30.4
IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES: %
Change
North American Motorized
Class A 10.4
Class C 0.3
Class B (2.5)
Total North American Motorized (0.3)
The increase in total North American Motorized net sales of 30.1% compared to the prior-year period resulted from a 30.4% increase in unit shipments and a 0.3% 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 an increase in current dealer and consumer demand in comparison with the demand in the prior-year period. According to statistics published by RVIA, for the six months ended January 31, 2026, combined North American motorhome wholesale unit shipments increased 10.2% compared to the same period last year. According to statistics published by Stat Surveys, for the six-month periods ended December 31, 2025 and 2024, our North American market share for motorhomes was 46.6% and 47.0%, 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 increase in the overall net price per unit within the Class A product line of 10.4% was primarily due to a higher concentration of sales of the generally higher-priced diesel units as opposed to the more moderately-priced gas units in the current-year period compared to the prior-year period. The slight increase in the overall net price per unit within the Class C product line of 0.3% was primarily due to product mix changes, and the Class B product line decrease of 2.5% was primarily due to product mix changes towards more moderately-priced units compared to the prior-year period.
North American Motorized cost of products sold increased $237,867 to $1,111,905, or 89.8% of North American Motorized net sales, for the six months ended January 31, 2026 compared to $874,038, or 91.9% of North American Motorized net sales, for the six months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $229,206 of the $237,867 decrease 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 decreased to 83.7% for the six months ended January 31, 2026 compared to 84.8% for the six months ended January 31, 2025, with the decrease primarily due to decreases in both the direct labor and warranty cost percentages.
Total manufacturing overhead increased $8,661 in correlation with the increase in net sales but decreased as a percentage of North American Motorized net sales from 7.1% to 6.1% as the increase in net sales levels resulted in lower overhead costs per unit sold.
The increase of $48,794 in North American Motorized gross profit for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was driven by the increase in North American Motorized 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 $9,347 in North American Motorized selling, general and administrative expenses for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily due to the increases in North American Motorized net sales and income before income taxes, which caused related commissions, incentive and other compensation to increase by $6,888. The decrease in the overall selling, general and administrative expense as a percentage of North American Motorized net sales was primarily due to the increase in North American Motorized net sales.
The increase of $40,674 in North American Motorized income before income taxes for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily due to the increase in North American Motorized net sales, and the primary reasons for the increase in percentage were the decreases in both the cost of products sold and selling, general and administrative percentages noted above.
EUROPEAN RECREATIONAL VEHICLES
Analysis of the change in net sales for the six months ended January 31, 2026 compared to the six months ended January 31, 2025:
Six Months Ended
January 31, 2026 		% of
Segment
Net Sales 		Six Months Ended
January 31, 2025 		% of
Segment
Net Sales 		Change Amount %
Change
NET SALES:
European
Motorcaravan $ 747,247 55.8 $ 653,862 53.7 $ 93,385 14.3
Campervan 370,567 27.7 339,180 27.9 31,387 9.3
Caravan 61,978 4.6 75,251 6.2 (13,273) (17.6)
Other 160,159 11.9 149,075 12.2 11,084 7.4
Total European $ 1,339,951 100.0 $ 1,217,368 100.0 $ 122,583 10.1
Six Months Ended
January 31, 2026 		% of
Segment
Shipments 		Six Months Ended
January 31, 2025 		% of
Segment
Shipments 		Change Amount %
Change
# OF UNITS:
European
Motorcaravan 9,146 50.3 8,604 47.6 542 6.3
Campervan 6,480 35.6 6,316 34.9 164 2.6
Caravan 2,562 14.1 3,157 17.5 (595) (18.8)
Total European 18,188 100.0 18,077 100.0 111 0.6
IMPACT OF CHANGES IN FOREIGN CURRENCY, PRODUCT MIX AND PRICE ON NET SALES:
Foreign Currency % Mix and Price % %
Change
European
Motorcaravan 8.8 (0.8) 8.0
Campervan 8.8 (2.1) 6.7
Caravan 8.8 (7.6) 1.2
Total European 8.8 0.7 9.5
The increase in total European Recreational Vehicle net sales of 10.1% compared to the prior-year period resulted from an increase of 0.6% in unit shipments and a 9.5% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price. The increase in European Recreational Vehicle net sales of $122,583 includes an increase of $106,921, or 8.8% of the 10.1% increase, due to the increase in foreign currency 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 six-month periods ended December 31, 2025 and 2024 was approximately 22.7% and 22.5%, 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 overall net price per unit increase of 9.5% included an 8.8% increase due to the impact of foreign currency exchange rate changes and a constant-currency increase of 0.7% due to the combined impact of product mix and selling prices, primarily due to the slightly higher concentration of Motorcaravan sales in the current-year period compared to the prior-year period.
The constant-currency decreases in the Motorcaravan product line of 0.8%, the Caravan product line of 7.6% and the Campervan product line of 2.1% were primarily due to product mix, along with a higher concentration of lower-priced entry level and special-edition motorcaravan products in the current-year period.
European Recreational Vehicle cost of products sold increased $143,217 to $1,187,008, or 88.6% of European Recreational Vehicle net sales, for the six months ended January 31, 2026 compared to $1,043,791, or 85.7% of European Recreational Vehicle net sales, for the six months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $129,329 of the $143,217 increase primarily due to the increased net sales and the increased material costs noted below. Material, labor, freight-out and warranty costs as a combined percentage of European Recreational Vehicle net sales increased to 75.5% for the six months ended January 31, 2026 compared to 72.4% for the six months ended January 31, 2025, primarily due to an increase in the material cost percentage as a result of the combined unfavorable impacts of increased chassis costs and a higher concentration of sales of entry-level and special-edition motorcaravan products, both of which have generally higher material cost percentages. The warranty cost percentage also increased.
Total manufacturing overhead increased by $13,888 primarily due to the increase in European Recreational Vehicle net sales but decreased as a percentage of European Recreational Vehicle net sales from 13.3% to 13.1% as the sales increase resulted in lower overhead costs per unit sold.
The decrease of $20,634 in European Recreational Vehicle gross profit for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 and the decrease in the gross profit percentage were both due to the increase in cost of sales noted above.
The increase of $23,505 in European Recreational Vehicle selling, general and administrative expenses for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily due to $11,520 in employee separation costs related to strategic fiscal year 2026 plant reorganization initiatives. In addition, sales wages and benefits increased $3,215 in correlation with the increase in European Recreational Vehicle net sales and professional fees and related RV repurchase costs also increased $2,430. The increase in the overall selling, general and administrative expense as a percentage of European Recreational Vehicle net sales is also primarily due to the employee separation costs noted above.
The decrease of $42,333 in European Recreational Vehicle income (loss) before income taxes for the six months ended January 31, 2026 compared to the six months ended January 31, 2025 was primarily due to the increase in cost of products sold and selling, general and administrative expenses as noted above, and the primary reason for the decrease in the percentage was the increase in both of these cost percentages.
Liquidity and Capital Resources
As of January 31, 2026, we had $242,176 in cash and cash equivalents, of which $133,223 was held in the U.S. and the equivalent of $108,953, predominantly in Euros, was held in Europe, compared to $586,596 in cash and cash equivalents on July 31, 2025, of which $412,088 was held in the U.S. and the equivalent of $174,508, 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 $344,420 decrease in cash and cash equivalents are described in more detail below, but the decrease was primarily attributable to cash used in operating activities of $157,108, cash used in investing activities of $31,210 and cash used in financing activities of $149,455.
Net working capital at January 31, 2026 was $1,176,220 compared to $1,193,279 at July 31, 2025. Capital cash expenditures of $60,019 for the six months ended January 31, 2026 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 $998,000 at January 31, 2026. 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 2026 is approximately 150,000, primarily for certain building projects and certain automation 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 two-thirds will be in North America and one-third 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 used in operating activities for the six months ended January 31, 2026 was $157,108 as compared to net cash provided by operating activities of $61,582 for the six months ended January 31, 2025.
For the six months ended January 31, 2026, net income adjusted for non-cash items (primarily depreciation, amortization of intangibles and stock-based compensation) provided $181,854 of operating cash. The change in net working capital resulted in a net use of $338,962 of operating cash during that period, primarily due to North American increases in inventory to support current demand, including increased chassis levels to support the increase in North American motorized demand and a seasonal increase in RV finished goods heading into the spring selling season. In addition, income tax payments during the period exceeded the income tax provision for the period and incentive compensation payables also decreased due to lower income before income taxes.
For the six months ended January 31, 2025, net loss adjusted for non-cash items (primarily depreciation, amortization of intangibles and stock-based compensation) provided $152,565 of operating cash. The change in working capital resulted in the net use of $90,983 of operating cash during that period, primarily due to 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 six months ended January 31, 2026 was $31,210, primarily due to capital expenditures of $60,019 partially offset by proceeds from the dispositions of property, plant and equipment of $28,895.
Net cash used in investing activities for the six months ended January 31, 2025 was $34,463, primarily due to capital expenditures of $51,538 partially offset by proceeds from the dispositions of property, plant and equipment of $21,209.
Financing Activities
Net cash used in financing activities for the six months ended January 31, 2026 was $149,455, primarily for payments on the term-loan credit facilities of $56,264, regular quarterly dividend payments of $0.52 per share for each of the first two quarters of fiscal 2026 totaling $54,827 and $30,280 used for treasury share repurchases.
Net cash used in financing activities for the six months ended January 31, 2025 was $167,005, primarily for payments on the term-loan credit facilities of $85,000 and regular quarterly dividend payments of $0.50 per share for each of the first two quarters of fiscal 2025 totaling $53,153.
The Company increased its previous regular quarterly dividend of $0.50 per share to $0.52 per share in October 2025. In October 2024, the Company increased its previous regular quarterly dividend of $0.48 per share to $0.50 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, 2025. 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, 2025.
Thor Industries Inc. published this content on March 03, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 03, 2026 at 11:34 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]