Thor Industries (THO) Stock Forecast & Price Target

Thor Industries has demonstrated strong financial performance, with a segment backlog that increased by 29.3% year-over-year to reach $1,005 million, indicating robust demand for its recreational vehicles. The company's diverse product offerings have led to significant revenue growth in multiple segments, including Class C revenues which surged by 20.7% year-over-year to $289.3 million, driven by a 28.0% increase in unit sales. Additionally, the fifth wheel segment also showed positive momentum, with revenues rising by 11.5% year-over-year to $387.8 million, reflecting both unit sales and average selling prices enhancements.

Thor Industries has reported a significant decline in its European segment gross profit, which decreased by 130 basis points year-over-year, now standing at 16.2%, largely attributed to increased sales discounting. Additionally, the company faced substantial reductions in campervan and caravan revenues, with campervan revenues dropping 20.1% year-over-year to $246.4 million due to a 26.9% decrease in unit sales, while caravan revenues fell 22.2% year-over-year to $43.4 million, also driven by a decrease in unit sales of 25.3%. Furthermore, the segment's earnings before tax (EBT) margin was negatively impacted, decreasing by 310 basis points to 5.2%, indicating ongoing challenges in profitability and overall financial performance.