Thor Industries (THO) Stock Forecast & Price Target

Thor Industries reported a robust revenue increase of 11.5% year-over-year, reaching $2.39 billion, alongside an improved operating margin that rose by 110 basis points to 1.6%, driven by higher sales and efficiency initiatives. The company's adjusted EBITDA for 1Q26 saw a significant increase of 21.5%, totaling $131 million, underscoring strong operational performance despite market challenges in the European RV segment, which still experienced an 8.4% sales growth. Additionally, the substantial 29.3% year-over-year increase in segment backlog to $1 billion highlights strong demand and potential for future revenue growth across various product lines.

Thor Industries reported a significant decline in its European segment gross profit, which decreased by 340 basis points year-over-year, largely due to a shift towards lower-margin products and heightened promotional activity, alongside increased warranty costs. The company witnessed notable revenue decreases across various segments, with Travel Trailer revenues down 16.0% year-over-year and Campervan revenues decreasing 20.1%, driven by substantial unit sales declines of 21.8% and 26.9%, respectively. Additionally, segment backlog fell by 29.7% year-over-year, indicating potential challenges in future sales performance, as the overall dealer inventory also declined, reflecting a tighter market environment.