Thor Industries reported fiscal third-quarter net sales of $2.78 billion, down 3.9% from $2.89 billion a year earlier, as profit metrics weakened on lower towable RV volumes and heavier cost pressure.
Net income attributable to Thor fell 28.1% to $97.2 million from $135.2 million. Diluted earnings per share dropped to $1.86 from $2.53, a decline of 26.5%. Gross profit declined 19.9% to $354.8 million from $443.1 million, and gross margin compressed to 12.8% from 15.3%, a 250-basis-point drop.
EBITDA decreased 10.3% to $209.1 million from $233.0 million, while adjusted EBITDA fell 28.0% to $183.6 million from $254.8 million.
For the first nine months of fiscal 2026, net sales rose 3.4% to $7.30 billion from $7.06 billion. Net income attributable to Thor increased 2.9% to $136.7 million from $132.8 million, and diluted EPS rose 4.0% to $2.59 from $2.49. Gross profit for the nine-month period slipped 4.4% to $927.0 million from $969.8 million, and gross margin narrowed to 12.7% from 13.7%. EBITDA climbed 5.3% to $411.9 million from $391.0 million, while adjusted EBITDA fell 8.2% to $412.6 million from $449.6 million.
The North American towable segment was the weakest part of the business 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 sank 48.5% to $89.7 million from $174.3 million. Margin narrowed to 10.2% from 14.9%, a 470-basis-point decline. Order backlog fell 39.1% to $386.0 million from $634.3 million.
North American motorized RVs moved in the opposite direction. Third-quarter net sales rose 7.7% to $717.7 million from $666.7 million, driven by a 9.1% increase in shipments to 6,008 from 5,507. Gross profit, however, declined 10.5% to $62.9 million from $70.3 million, and margin slipped to 8.8% from 10.5%. Order backlog decreased 13.3% to $766.1 million from $883.7 million.
European RV sales also increased, with third-quarter net sales up 11.8% to $987.6 million from $883.5 million. Unit shipments rose 4.2% to 14,065 from 13,495. Gross profit was essentially flat at $142.0 million versus $142.8 million, while margin fell to 14.4% from 16.2%. Order backlog was little changed at $1.36 billion, up 1.0% from $1.34 billion.
In capital returns, Thor repurchased $50.5 million of shares during the quarter and paid $27.1 million in dividends. The company also cut full-year diluted EPS guidance to a range of $3.30 to $3.80 from $3.75 to $4.25, while leaving its consolidated net sales outlook unchanged at $9.0 billion to $9.5 billion. Today the company's shares have moved 0.01% to a price of $77.545. For more information, read the company's full 8-K submission here.
