Thor Industries Reaffirms Outlook As Q3 Results Top Estimates; Stock Up 10%

(RTTNews) - Thor Industries, Inc. (THO), manufacturer of recreational vehicles, reported Wednesday that net profit for the third quarter grew 18 percent from last year, driven by improved gross margins, lower interest expense and sales growth. Both earnings per share and net sales topped analysts' expectations.

The company also reaffirmed its financial outlook for the full-year 2025, taking into consideration results to date and the expectations for its North American and European operations for the final fiscal quarter.

In Wednesday's pre-market trading session on the NYSE, Dollar Tree share are surging $8.55 or 10.39 percent to trade at $90.85.

"The successful execution of key strategic initiatives, in particular placing further emphasis on driving down our cost profile, led to improved margins in an environment where we saw modest year-over-year top-line improvement," said Bob Martin, President and Chief Executive Officer.

For the third quarter, net income attributable to the company increased to $135.19 million or $2.53 per share from $114.51 million or $2.13 per share in the prior-year quarter.

Net sales for the quarter grew 3.3 percent to $2.89 billion from $2.80 billion in the same quarter last year.

On average, analysts polled expected the company to report earnings of $1.80 per share on net sales of $2.61 billion for the quarter. Analysts' estimates typically exclude special items.

North American Towable RVs segment net sales improved 9.1 percent to $1.17 billion, driven by a 5.5 percent increase in unit shipments and a 3.6 percent increase in the overall net price per unit.

North American Motorized RVs segment net sales grew 3.1 percent to $666.69 million, driven by a 10.9 percent increase in unit shipments, partially offset by a 7.8 percent decrease in net price per unit.

Meanwhile, European RVs segment net sales decreased 5.1 percent to $883.54 million, due to 12.2 percent decline in unit shipments, partially offset by a 7.1 percent increase in overall net price per unit.

Gross margin improved 20 basis points to 15.3 percent from last year.

Looking ahead to fiscal 2025, the company continues to project earnings in a range $3.30 to $4.00 per share on net sales between $9.0 billion and $9.5 billion. The Street is looking for earnings of $3.47 per share on revenues of $9.23 billion for the year.

Due to recent developments in trade policies, and considering the remaining duration of its fiscal year, Thor believes that its performance is still slated to fall solidly within its previously announced guidance, assuming no new material shifts within the macro or global trade environment.

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