Executive Summary

Q4 FY25 printed mixed top-line but strong bottom-line: revenue $2.52B (-0.4% y/y) and diluted EPS $2.36 (+40.5% y/y), both above S&P Global consensus, with EPS beating by ~$1.13 and revenue by ~$0.19B as operating efficiencies, lower warranty/promotional spend, and segment mix offset macro/tariff headwinds . EPS and revenue beats vs consensus from S&P Global: $2.36 vs $1.235* and $2.524B vs $2.324B*.
Segment dynamics: NA Motorized grew revenue 7.8% on +15.9% units (mix and promos pressured GM), NA Towable net sales -4.6% with +70 bps GM, and Europe -2.2% revenue with -310 bps GM amid elevated discounting and restructuring .
FY26 guide introduced: net sales $9.0–$9.5B, stable gross margin at midpoint, EPS $3.75–$4.25; assumes low- to mid-single-digit NA retail decline, normalized tax rate, and no material benefit yet from Heartland realignment or Keystone refresh .
Stock reaction: shares rallied after the beat and efficiency commentary, as investors looked through macro caution to company-specific execution and FY26 setup .

What Went Well and What Went Wrong

What Went Well

Market share and retail traction: Management cited an inflection in lot share for NA Towable and Motorized, with stronger retail performance and improved dealer turns exiting Q4 (1.9x) positioning channel inventory appropriately into fall .
Cost execution and margins: NA Towable GM +70 bps y/y on reduced warranty/promotional expenses and cost savings, despite wholesale shipment reductions to manage channel inventory; consolidated other income also helped from property sales and insurance settlement .
Innovation roadmap: Launched Entegra Embark hybrid Class A (range-extended electric) on Harbinger chassis, reinforcing technology leadership and compliance strategy for evolving regulations (e.g., ACT), with commercialization starting 2026 .

What Went Wrong

Europe margin pressure: European GM -310 bps y/y on increased promotional activity, higher input costs, and restructuring; unit shipments -14.1% y/y despite higher ASPs, compressing profitability .
Promotional mix in Motorized: NA Motorized GM -150 bps y/y due to prior-year favorable LIFO and more aggressive promos; mix shifted to lower-priced Class B/C, lowering ASPs and pressuring margins .
Macro caution into FY26: Management flagged signs of weakening labor market and affordability constraints; FY26 planning assumes another challenging year with low- to mid-single-digit retail decline in NA .

Financial Results

Year-over-Year vs Estimates (Q4 FY25)

Metric	Q4 FY24	Q4 FY25	S&P Global Consensus
Revenue ($USD Billions)	$2.534	$2.524	$2.324*
Diluted EPS ($)	$1.68	$2.36	$1.235*
Gross Margin (%)	15.8%	14.7%	—

Notes: Asterisks denote values from S&P Global; see Estimates Context section for disclaimer.

Sequential Trend (FY25)

Metric	Q2 FY25	Q3 FY25	Q4 FY25
Revenue ($USD Billions)	$2.018	$2.895	$2.524
Diluted EPS ($)	$(0.01)	$2.53	$2.36
Gross Margin (%)	12.1%	15.3%	14.7%

Segment Breakdown (Q4 FY25 vs Q4 FY24)

Segment	Net Sales ($USD Billions)	Unit Shipments (000s)	Gross Margin (%)
NA Towable – Q4 FY24	$0.932	28.572	12.6%
NA Towable – Q4 FY25	$0.889	25.682	13.3%
NA Motorized – Q4 FY24	$0.517	3.777	12.8%
NA Motorized – Q4 FY25	$0.557	4.379	11.3%
Europe – Q4 FY24	$0.943	14.982	18.7%
Europe – Q4 FY25	$0.923	12.873	15.6%

KPIs and Balance/Liquidity Highlights

KPI	FY24	FY25	Notes
Cash from Operations ($USD Millions)	$545.5	$577.9	+5.9% y/y
Cash & Equivalents ($USD Millions) (7/31)	$501.3	$586.6	Year-end
NA Towable Backlog ($USD Millions) (7/31)	$552.4	$525.0	-5.0% y/y
NA Motorized Backlog ($USD Millions) (7/31)	$776.9	$1,004.6	+29.3% y/y
Europe Backlog ($USD Millions) (7/31)	$1,950.8	$1,525.6	-21.8% y/y

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Net Sales	FY26	—	$9.0B–$9.5B	Initial
Gross Margin	FY26	—	Stable at midpoint	Initial
Diluted EPS	FY26	—	$3.75–$4.25	Initial
Tax Rate	FY26	—	Normalized	Initial
Restructuring Impact	FY26	—	No meaningful impact assumed (Heartland realignment, Keystone refresh)	Initial
Dividend per Share	Ongoing	$0.50 (Oct-2024)	$0.52 regular quarterly (declared Oct-8-2025)	Raised

Assumptions embedded in FY26: low- to mid-single-digit NA retail decline with stable share; steady Europe; flat-to-modestly higher ASPs on intra-category mix; cadence similar to FY25 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY25, Q3 FY25)	Current Period (Q4 FY25)	Trend
Macro/retail & tariffs	Cautious on consumer confidence; tariffs manageable with sourcing, shared responsibility; NA retail expected to be challenging 1H with improvement later .	Planning for another challenging year; signs of labor market weakness; assumes low- to mid-single-digit retail decline .	Persistent caution; company initiatives offset macro.
Dealer inventories & turns	NA dealer inventory ~86.2k (Q2) and 91.8k (Q3); appropriate and aligned with retail .	NA inventory ~73.3k at 7/31; dealer turns improved to 1.9x; channel well-positioned .	Improved turns; inventory levels tightened into fall.
Market share	Targeting share gains; mix to affordability (Towables, Class B/C); Motorized units rising in Q3 .	Lot share gains inflected for NA Towable and Motorized; retail performance strengthening .	Positive inflection continuing.
Europe dynamics	Mainstream pressure, elevated promos; retail resilient; ECB cuts supportive .	Revenue -2.2% y/y; units -14.1%; GM -310 bps; positive signs at Düsseldorf show; expect share opportunities as inventory mix improves .	Stabilizing with targeted restructuring.
Product/tech & regulation	ACT mitigation via hybrid Class A and credits; Harbinger partnership .	Entegra Embark hybrid Class A introduced; commercialization in 2026 .	Execution on electrification roadmap.
Parts strategy/data	Building RV Partfinder and parts marketplace to reduce repair cycle time .	“Best-in-class marketplace for RV parts” initiative highlighted .	Scaling ecosystem capabilities.

Management Commentary

CEO Bob Martin: “We are very pleased with the results that our teams delivered amidst a highly volatile macroeconomic backdrop…we remain focused on improving our operational efficiency, gaining market share and driving long-term success.”
COO Todd Woelfer: “Opportunities…to further leverage data to monitor and respond to retail demand in real time, [create] a best-in-class marketplace for RV parts…[and] generate sustainable cost savings related to the consolidation of Heartland brands under Jayco.”
CFO Colleen Zuhl: “Despite the challenging macro environment, we were able to generate over $577.9 million of cash from operations…used to further invest in our business, fund returns to shareholders and reduce debt.”
IR/Corp Dev Head Seth Woolf on FY26: prudent to plan for another challenging year given labor market signals; upside exists from company-specific initiatives .

Q&A Highlights

Dealer sentiment and outlook: Dealers “cautiously optimistic”; expect ordering closer to need; RVIA most-likely 2025 wholesale scenario ~337k units; FY26 guide embeds low- to mid-single-digit NA retail decline .
Affordability and tariffs: Affordability remains a key headwind; efforts to manage BOM, product mix, and share costs across value chain; private label offerings help hit key price points without destroying economics .
Segment drivers: NA Towable GM +70 bps on lower warranty/promos and cost savings; NA Motorized units +15.9% with mix to Class B/C and higher discounting; Europe pressured by promos and restructuring costs .
Inventory/backlog: NA dealer inventory ~73.3k; Europe ~22.2k; Towable backlog -5% y/y; Motorized backlog +29% y/y; Europe backlog -21.8% y/y .
Keystone/Heartland initiatives: Keystone comprehensive product refresh and rebranding; Heartland consolidated under Jayco expected to drive sustainable cost savings and a multi-year share opportunity (after initial inefficiencies) .

Estimates Context

Metric	Q4 FY25 Consensus	Q4 FY25 Actual
Revenue ($USD Billions)	$2.324*	$2.524
Diluted EPS ($)	$1.235*	$2.36

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.

Implications: Both EPS and revenue materially beat consensus, driven by cost execution (Towable) and better-than-expected Motorized shipments; estimate revisions should trend up for FY26 EPS given initial guide midpoint ($4.00) vs model ranges and execution levers (Heartland/Keystone, parts marketplace) despite macro caution .

Key Takeaways for Investors

Q4 beat on EPS and revenue vs consensus, with cost control and segment execution offsetting macro; stock positive reaction suggests market is rewarding company-specific drivers despite cautious FY26 framing .
FY26 guide prudent (EPS $3.75–$4.25; sales $9.0–$9.5B), setting a beatable bar if retail stabilizes and restructuring/refresh benefits materialize in 2H FY26 .
NA Motorized backlog strength (+29% y/y) and Class B/C momentum offer share and volume support; watch mix/promo intensity for margin trajectory .
NA Towable margin improvement appears durable as warranty/promo normalization and cost actions continue; monitor dealer turns and channel health (currently improved) .
Europe near-term margin headwinds likely to moderate as inventory mix normalizes; positive show orders and product refresh underpin longer-term share recovery .
Strategic catalysts: Heartland under Jayco consolidation, Keystone portfolio refresh, parts marketplace expansion, and electrification (Embark hybrid Class A) can drive structural earnings power over the cycle .
Capital allocation remains supportive: FY25 CFFO $578M, debt reduction ~$237M, dividend raised to $0.52/quarter; liquidity positions THO to act on dislocations/opportunities .

Sources: Q4 FY25 8-K earnings release, investor slides, and Q&A (Sept 24, 2025) –; Q3 FY25 and Q2 FY25 8-Ks for trend analysis – – – –; Embark hybrid Class A press release (Sept 22, 2025) ; Dividend press release (Oct 8, 2025) .

THOR INDUSTRIES INC (THO)·Q4 2025 Earnings Summary