Thor Industries reported fiscal third-quarter net sales of $2.78 billion, down 3.9% from $2.89 billion a year earlier, as weaker towable RV demand and softer margins outweighed gains in motorized and European operations.
Net income attributable to Thor fell 28.1% to $97.2 million from $135.2 million, while diluted earnings per share dropped to $1.86 from $2.53, a 26.5% decline. EBITDA decreased 10.3% to $209.1 million from $233.0 million, and adjusted EBITDA fell 28.0% to $183.6 million from $254.8 million.
Gross profit declined to $354.8 million from $443.1 million, and gross margin contracted to 12.8% from 15.3%, a 250-basis-point drop.
For the first nine months of fiscal 2026, the company posted net sales of $7.30 billion, up 3.4% from $7.06 billion. Net income attributable to Thor rose 2.9% to $136.7 million, and diluted EPS increased 4.0% to $2.59 from $2.49. EBITDA climbed 5.3% to $411.9 million, while adjusted EBITDA fell 8.2% to $412.6 million.
The North American towable segment was the weakest area in the quarter. Net sales fell 24.6% to $881.8 million from $1.17 billion, unit shipments dropped 25.0% to 27,045 from 36,077, and gross profit slid 48.5% to $89.7 million from $174.3 million. Gross margin narrowed to 10.2% from 14.9%. Order backlog fell 39.1% to $386.0 million from $634.3 million.
North American motorized RVs moved in the opposite direction. Net sales rose 7.7% to $717.7 million from $666.7 million, unit shipments increased 9.1% to 6,008 from 5,507, and gross profit was $62.9 million versus $70.3 million a year earlier. Gross margin slipped to 8.8% from 10.5%. Order backlog declined 13.3% to $766.1 million from $883.7 million.
European RV sales increased 11.8% to $987.6 million from $883.5 million, with unit shipments up 4.2% to 14,065 from 13,495. Gross profit was essentially flat at $142.0 million versus $142.8 million, while gross margin fell to 14.4% from 16.2%. Order backlog edged up 1.0% to $1.36 billion from $1.34 billion.
During the quarter, Thor repurchased $50.5 million of stock and paid $27.1 million in dividends.
The company cut full-year diluted EPS guidance to $3.30 to $3.80 from $3.75 to $4.25, while leaving consolidated net sales guidance unchanged at $9.0 billion to $9.5 billion. The market has reacted to these announcements by moving the company's shares 0.99% to a price of $78.3095. Check out the company's full 8-K submission here.
