Thor Industries (THO) Stock Forecast & Price Target

Thor Industries reported a strong revenue increase of 11.5% year-over-year in the first quarter of fiscal 2026, reaching $2.39 billion, alongside a notable improvement in operating margin, which rose by 110 basis points to 1.6% due to enhanced sales and efficiency initiatives. The company experienced significant growth in its Class C segment, with revenues soaring by 40.5% year-over-year and unit sales climbing 41.0%, further supported by a 29.3% year-over-year increase in segment backlog to $1,005 million. The North American motorized segment also demonstrated resilience, with gross profit improving by 230 basis points to 10.8%, driven by volume leverage, reduced promotional activities, and lower warranty costs, all contributing to a positive long-term outlook for the company.

Thor Industries has experienced significant revenue declines in its various segments, with Travel Trailer revenues falling 16% year-over-year to $506 million and unit sales decreasing by 21.8%. The European segment also showed weakness, evidenced by a gross profit margin decrease of 340 basis points to 11.9%, attributed to a higher mix of lower-margin products and increased promotional activity. Additionally, the overall segment backlog has decreased by 29.7% year-over-year to $656 million, indicating weakened demand and potential challenges ahead for the company's revenue generation.