Thor Industries (THO) Stock Forecast & Price Target

Thor Industries has demonstrated strong financial growth, with 1Q26 revenue increasing by 11.5% year-over-year to $2.39 billion and a significant rise in adjusted EBITDA by 21.5% to $131.0 million, surpassing expectations. The company's operating margin showed improvement, increasing by 110 basis points to 1.6%, driven by heightened sales and operational efficiency initiatives. Additionally, a 29.3% year-over-year increase in segment backlog to $1.005 billion indicates strong future demand for its motorized and towable recreational vehicles.

Thor Industries experienced a significant decline in its European segment gross profit, which fell by 340 basis points year-over-year to 11.9%, attributed to a higher mix of lower-margin products and increased promotional and warranty costs. The company also reported a 16.0% decrease in Travel Trailer revenues, which totaled $506.0 million, with unit sales dropping 21.8%, indicating persistent challenges in demand. Additionally, a notable 29.7% decrease in segment backlog to $656.0 million further illustrates weakening order trends, alongside a 6.5% decline in dealer inventory levels, raising concerns about future sales performance.