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Thor Industries (THO) is higher after a mixed finish to FY26. Q4 (Jul) EPS of $0.78 missed expectations, while revenue beat at $2.31 bln, though still declined 8.4% yr/yr. THO also held back from providing its initial FY27 guidance, noting that the upcoming Hershey show and Elkhart Open House should provide additional insight into industry demand, as it also works through the timing and magnitude of expected savings from its new North American operating structure. However, it did note that it expects a roughly flat retail environment and many of the same demand and affordability pressures to persist in the near term.

• Towables: North American Towables remained under pressure, with sales falling 22.7% to $687.3 mln amid a 19.7% decline in unit shipments as dealer ordering remained cautious. Dealer inventory declined 16.0% yr/yr and 20.6% sequentially, leaving channel inventory at healthier levels, but gross margin still fell 280 bps to 10.5% on lower volumes, promotions, and higher material costs.
• Motorized RVs: Motorized took a step back, with sales declining 10.4% to $499.3 mln amid a 13.1% decrease in unit shipments. Gross margin fell 600 bps to 5.3%, reflecting increased promotional activity, higher material costs, and overhead pressure from lower volumes.
• Europe: Europe remained the bright spot, with sales increasing 5.0% to $969.2 mln and shipments rising 3.9%. Consumer demand continues to favor motorized products, while lower-margin special-edition units have largely cleared the channel, with gross margin improving 90 bps sequentially to 15.3%.
• Margins: Consolidated gross margin declined 230 bps yr/yr to 12.4%, with the biggest pressure coming from North America. THO has intentionally absorbed a portion of supplier cost increases rather than fully pass them through to consumers, adding to near-term margin pressure as it works to protect affordability.
• Looking ahead: THO expects current Towable pressures to persist to some degree through 1H27, but its unified North American RV operating model is beginning to generate procurement savings. Management expects its strategic and restructuring initiatives to eventually improve annual earnings by more than $100 mln once fully implemented.

Briefing.com Analyst Insight

THO closed FY26 on a mixed note, with the EPS miss reflecting significant margin pressure from softer sales, operating deleverage, promotions, and the decision to absorb higher input costs to support affordability. The revenue beat was more encouraging, suggesting demand held up somewhat better than expected despite continued yr/yr declines, while Europe remained a clear bright spot. However, the lack of initial FY27 guidance leaves limited visibility for now, and management still expects many of the same demand and affordability pressures to persist near term. The modest move higher may reflect some optimism around THO's restructuring and unified North American operating model, which is expected to improve annual earnings by more than $100 mln once fully implemented, particularly with shares entering the report near a 52-wk low. It will be important to see whether these actions begin translating into better margins and whether upcoming industry events point to a healthier demand environment.