📌 At a Glance:
Thor Industries’ Q1 FY25 results are like that awkward silence at a family RV dinner — total revenue down 4.4%, and net income absolutely tanked by 58% YoY. From hero to high maintenance.
🔍 About the Company
Thor Industries is one of the world’s largest RV manufacturers, operating brands like Airstream, Jayco, and Heartland. If you’ve seen a family of five on a cross-country trip, odds are they’re in a Thor product.
🧑💼 Key People
- Bob Martin, CEO — been around since the pandemic boom.
- Colleen Zuhl, CFO — now has to answer why margins are evaporating.
📊 Financials (Q1 FY25)
| Metric | Q1 FY25 | Q1 FY24 | YoY Change |
|---|---|---|---|
| Net Sales | $2.35 billion | $2.46 billion | ▼ 4.4% |
| Gross Profit | $327.6 million | $401.1 million | ▼ 18.3% |
| Gross Margin | 13.9% | 16.3% | ▼ 240 bps |
| Net Income | $55.6 million | $133.6 million | ▼ 58.4% |
| Diluted EPS | $1.04 | $2.39 | ▼ 56.5% |
| Cash & Equivalents | $361 million | N/A | N/A |
🧮 Forward-Looking Fair Value (FV) Estimate
Annualizing Q1 EPS to ~$4.16 and applying a conservative 10x P/E for cyclical firms:
FV Range: $40–$45/share
CMP as of June 4, 2025 is well above that, implying this might still be priced for a comeback that hasn’t shown up yet.
🚐 Segment Breakdown
- North America Towables: Revenue ▼ 10.2%
- North America Motorized: ▼ 13.7%
- European RVs: Revenue up 9.6% – the only bright spot.
🔄 Inventory & Dealer Comments
- Dealers are “managing inventories tightly” — translation: they aren’t confident demand is coming back fast.
- The company blames it on interest rate fatigue and inflation eating into consumer leisure budgets.
🧠 EduInvesting Take
Thor’s situation is like trying to take a luxury RV up a steep hill in neutral gear. It’s not crashing, but it’s definitely not climbing.
Unless rate cuts boost retail finance demand for RVs, expect more quarters of soft numbers and awkward conference calls.
⚠️ Risks & Red Flags
- Rising cost of capital
- RV market saturation post-COVID
- Gross margins thinning like a retiree’s hairline
Author: Prashant Marathe
Date: June 4, 2025
Tags: Thor Industries, RV Market, Q1 FY25 Earnings, EduInvesting
