Thor Industries (THO) Stock Forecast & Price Target

Thor Industries reported a notable revenue increase of 11.5% year-over-year in 1Q26, reaching $2.39 billion, alongside a significant rise in adjusted EBITDA of 21.5%, totaling $131.0 million. The company's North American motorized segment demonstrated improved profitability, with gross profit increasing 230 basis points to 10.8%, attributed to enhanced sales volume, reduced promotional activity, and lower warranty costs. Moreover, the segment backlog expanded by 29.3% year-over-year to $1 billion, indicating strong demand and a healthy pipeline for future sales.

Thor Industries reported a significant decline in key financial metrics, with European segment gross profit falling 340 basis points year-over-year to 11.9%, attributed to a higher mix of lower-margin products and increased costs related to promotions and warranties. Travel trailer revenues decreased by 16.0% year-over-year to $506.0 million, alongside a marked drop in unit sales by 21.8%, which raises concerns about demand resilience. Additionally, the segment backlog declined by 29.7% year-over-year to $656.0 million, highlighting potential challenges in future revenue generation amidst decreasing dealer inventory levels and ongoing sales discounting pressures.