THOR Industries FY2026: Sales Flat at $9.6B, Profit Down 31% as RV Margins Narrow

THOR Industries, the largest maker of recreational vehicles in the world, sold $9.61 billion of them in fiscal 2026. That is 0.3% more than the year before. Net income attributable to THOR fell 31.3%, to $177.5 million. The gap between those two numbers is one line: gross margin went from 14.0% to 12.6%. Four years ago, at the top of the pandemic boom, the same company sold $16.3 billion and kept $1.14 billion. Sales are down 41% from that peak. Profit is down 84%.

THOR filed its Form 10-K on September 22, 2026, the same day as its earnings release. Every figure below is from that audited filing unless we say otherwise, and fiscal 2022 through fiscal 2025 come from each year's own 10-K. The fiscal year ends July 31. THOR reports in thousands of dollars. The ledger keeps every digit; the tables here show millions to one decimal.

The Headline Numbers​

Read the table from the top. Sales rose $28.7 million. Cost of products sold rose $156.7 million. So gross profit fell $128.0 million on flat sales, and that is the whole operating story of the year.

Then read the bottom half, where three things pull in different directions. Selling, general and administrative expenses fell $19.2 million, mostly because incentive pay fell with profit. Interest cost fell $11.6 million because debt is lower. Other income rose $32.9 million. Together those cushioned the fall, and income before income taxes dropped $57.5 million, less than half the drop in gross profit.

Taxes then went the other way. The effective rate was 26.8%, against 13.4% a year earlier. The 10-K says fiscal 2025 was "favorably impacted by a foreign tax law change," and fiscal 2026 was hurt by "certain losses in foreign jurisdictions without an associated tax benefit." A normal tax rate replacing an unusually low one took another $24.5 million out of net income.

One more line deserves a note. The non-controlling interests' share was a loss of $2.9 million, so net income attributable to THOR is higher than consolidated net income. The ledger follows the filing and uses the attributable figure.

Revenue Deep Dive​

THOR has three reportable segments and an "Other" group of component suppliers. They did not move together.

North American Towable is the problem. Travel trailers and fifth wheels are the entry point to the RV market, and THOR shipped 24,745 fewer of them. Travel trailer units fell 22.4%. The net price per unit rose 4.6%, but the 10-K says the increases within travel trailers and fifth wheels "were both primarily due to product mix changes," and the rest came from selling a larger share of higher-priced fifth wheels. That is mix, not higher prices on the same product. For the first time in this five-year window, the European segment is larger than North American Towable.

North American Motorized grew 12.8% on a 12.4% rise in units, "primarily due to an increase in dealer and consumer demand." Its retail market share for motorhomes rose to 48.5% from 47.8%. But its order backlog fell 27.5% to $728.2 million, and fourth-quarter motorized sales were down 10.4%. The growth came early in the year.

European sales rose 9.0%, and the filing splits that number carefully. Of the $272.8 million increase, $179.4 million came from exchange rates. On a constant-currency basis sales rose 3.1%. Units rose 2.7%. Motorcaravans and campervans grew about 6% each while caravans fell 16.4%.

Other is the supply side: component parts sold to RV makers and through the aftermarket, and aluminum extrusions. Some of those sales go to THOR's own plants, which is what the eliminations line removes. It grew 13.7% and earned a 20.1% gross margin, the best in the company.

The release is direct about demand. "The retail market never reached the inflection point many in the industry expected, as stubborn interest rates, elevated fuel costs and ever-present inflationary pressures have strained household budgets and kept retail soft throughout the critical selling season." The industry data in the 10-K agrees: North American retail registrations for the six months ended June 30, 2026 fell 14.8%, and THOR's own fell 18.5%.

The one positive demand signal is in the backlog. North American Towable backlog rose 74.6%, to $916.6 million, and total backlog rose 8.0%, to $3.30 billion. Dealers hold less stock than a year ago. North American dealer inventory of THOR products fell 12.7%, to about 64,000 units. A thin channel and a larger order book is how a recovery starts. It is also what a channel looks like when dealers refuse to carry stock at today's interest rates. The filing leans to the second reading: dealers "will be continuously reevaluating their desired stocking levels, which may result in lower than historical dealer inventory stocking levels."

Supply is not the constraint. The 10-K says "the supply chain is currently able to support our demand." Nothing in the release or the filing says demand exceeds supply, and nothing claims a product ramp ahead of plan.

The Margin Story​

Gross margin held near 14% for three years after the boom ended. Fiscal 2026 is the year it broke lower, and every RV segment took part:

The company says why, and the reason is a choice. From the 10-K: "During fiscal 2026, we intentionally did not fully pass along cost increases we incurred, including tariff-related costs, relative to raw material input costs in an effort to manage end-consumer affordability of our products. Our margins were negatively impacted as a result." The release puts the trade the same way, "accepting near-term margin pressure in exchange for long-term health of the business."

So this is the opposite of pricing power. Material costs rose, and THOR absorbed them to keep trailers at prices buyers could finance. In North American Towable, material, labor, freight-out and warranty costs rose to 80.0% of segment sales from 78.8%. In Europe they rose to 75.5% from 73.4%, on "increased chassis costs" and more entry-level models. The only price increases the filing names are "selective selling price increases" on Class C motorhomes.

Fixed costs did the rest. A plant that ships 20.7% fewer towables still has a roof. Towable manufacturing overhead fell $28.6 million in dollars and still rose to 8.8% of segment sales from 8.1%.

The tariff picture is unsettled, and the filing says so at length. After the Supreme Court held in February 2026 that the International Emergency Economic Powers Act does not authorize tariffs, THOR filed refund claims for the tariffs it paid as importer of record, and it is pursuing vendors who passed such costs through. It does not put a number on either: "The ultimate amount and timing of any refunds or supplier recoveries remain uncertain."

The One Big Question: How Much of the Profit Is Operations?​

THOR's income statement has no operating income line. It goes from gross profit to income before income taxes in four steps. If we do the subtraction the filing leaves out, gross profit less SG&A less amortization, we get this:

The first row is not a number THOR reports, and we label it as ours. It fell 34.1% in fiscal 2026. Income before income taxes fell 19.4%. The difference is the last two rows.

Other income was $78.5 million, which is 32.9% of pre-tax income. In fiscal 2022 through fiscal 2024 it was never above $17.3 million. The 10-K lists what moved it in fiscal 2026: a $12.2 million increase in gains on sales of property, plant and equipment, a $13.0 million favorable swing in foreign currency gains, $16.4 million more in fair-value gains on "certain warrants and stock investments," and a $5.4 million swing in deferred compensation plan assets. Against those, the company took a $7.8 million impairment on towable facilities held for sale.

The restructuring note gives one level, not just a change. The North American Towable segment realized $36.9 million of gains from selling fixed assets in fiscal 2026 and $24.1 million in fiscal 2025, "which primarily related to the restructuring activities." THOR is closing plants and selling the buildings. The gains land in other income. The costs of the same program land elsewhere: $29.3 million in North American Towable, $3.9 million in North American Motorized, $25.2 million in Europe and $0.5 million in Other and Corporate, spread across net sales, cost of products sold, SG&A and other income.

None of this is hidden, and none of it is improper. Selling a closed plant at a gain is real money. But a building can be sold once. An investor who takes $238.7 million as the earning power of the business at the bottom of the cycle is counting warrant gains, currency gains and real estate. The manufacturing result is the first row, and it has fallen every year since fiscal 2022.

The release does not argue otherwise. "The RV industry remains in an extended down cycle and we are not going to characterize it as anything other than what it is. Certainly, our earnings are currently below where we want them to be." Management gave no fiscal 2027 guidance in the release, saying it would wait for two September dealer events before doing so. It expects "a relatively flat retail environment in fiscal 2027 compared to fiscal 2026."

Other big-ticket, rate-sensitive companies in this series show the same squeeze from the buyer's side. See the homebuilders: KB Home's fiscal third quarter and Lennar's.

Tracking a $9.6B RV Maker in Plain Text​

A recap can quote pre-tax income and move on. A ledger cannot, because double-entry makes every line that produced it sit in the same column. The conventions are the ones we use for every company in this series: how we model every company. Income postings are negative (credits) and expense postings are positive (debits), and the transaction sums to zero.

; Check: −9,608.145 + 8,395.515 + 903.396 + 112.159 + 36.836 + −86.304 + 7.822 + −2.885 + 64.067 + 177.539 = 0 ✓
2026-07-31 * "THOR Industries, Inc." "FY2026 Income Statement"
  Income:Revenue                              -9608.145 MUSD  ; net sales: Towable 3,176,687 + Motorized 2,455,160 + European 3,296,729 + Other 976,976 − eliminations 297,407
  Expenses:CostOfRevenue                       8395.515 MUSD  ; cost of products sold
  Expenses:SellingGeneralAdministrative         903.396 MUSD  ; selling, general and administrative expenses
  Expenses:SellingGeneralAdministrative         112.159 MUSD  ; amortization of intangible assets
  Income:OtherNet                                36.836 MUSD  ; interest expense, net
  Income:OtherNet                               -86.304 MUSD  ; other income, net, before the labeled item below (filed other income, net 78,482)
  Income:OtherNet                                 7.822 MUSD  ; impairment charge on towable facilities held for sale (Note 5)
  Income:OtherNet                                -2.885 MUSD  ; net loss attributable to non-controlling interests, added back
  Expenses:IncomeTax                             64.067 MUSD  ; income taxes
  Equity:Adjustments                            177.539 MUSD  ; net income attributable to THOR Industries, Inc.

Four postings sit on Income:OtherNet this year. In fiscal 2022 through fiscal 2025 the same lines sat on Expenses:OtherNet, because interest cost was larger than other income. In fiscal 2026 the sign of the group flipped. That one account change is the section above in a single glance: THOR's below-the-line items went from a cost to a contribution.

The comments are shortened here; the amounts and accounts are the ledger's. The $7.8 million impairment is a figure the 10-K prints and places in other income, so it gets its own posting, and the posting beside it is the rest of the filed line. The two add back to the $78.5 million THOR reported. The gains on plant sales are different. The filing gives the amount for one segment and describes the consolidated line only by its year-over-year change, so we describe them in a comment and do not split them out.

The balance sheet carries the better half of the story:

2022-07-31 balance Assets:Current:Inventory                             1754.773 MUSD  ; inventories, net
2026-07-31 balance Assets:Current:Inventory                             1423.117 MUSD  ; inventories, net
2022-07-31 balance Liabilities:NonCurrent:LongTermDebt                 -1754.239 MUSD  ; long-term debt
2026-07-31 balance Liabilities:NonCurrent:LongTermDebt                  -865.145 MUSD  ; long-term debt
2022-07-31 balance Equity:TreasuryStock                                  543.344 MUSD  ; treasury shares, at cost (debit balance)
2026-07-31 balance Equity:TreasuryStock                                  872.160 MUSD  ; treasury shares, at cost (debit balance)

Long-term debt is the number that tells the narrative. It fell from $1,754.2 million to $865.1 million while profit fell 84%. THOR paid down half its long-term debt during a four-year slide in its own shipments. That is why interest expense is $36.8 million and not $90.1 million, and why the company could also spend $115.1 million on its own shares in fiscal 2026.

The Multi-Year Arc​

Fiscal 2022 was the peak. THOR shipped 328,557 units at the height of pandemic-era demand. The next year units fell 43.1%, to 187,015. That was the correction. What followed was not a recovery. Units were flat in fiscal 2024, down 3.0% in fiscal 2025 and down another 11.8% in fiscal 2026. Fiscal 2026 unit shipments are 51.3% below the peak.

For scale, compare fiscal 2026 with fiscal 2020, the last year before the boom, using the comparative columns of the fiscal 2022 10-K. Net sales are 17.6% higher than fiscal 2020's $8,167.9 million. Net income attributable to THOR is 20.4% lower than fiscal 2020's $223.0 million. The company is larger than it was before the pandemic and earns less.

What the arc does show is discipline with cash. Over the five years THOR paid $507.9 million in dividends, raising the quarterly rate every year from $0.43 to $0.52 per share, and bought back $443.3 million of stock. It did both while cutting long-term debt by $889.1 million. The cost of the downturn was absorbed by the income statement, not by the balance sheet.

One line moved the wrong way in fiscal 2026. Inventories rose 5.3% in a year when units fell 11.8%. The inventory note shows where: raw materials rose to $454.6 million from $409.4 million and chassis to $461.3 million from $438.1 million, while finished RVs fell to $213.5 million from $256.2 million. THOR is not sitting on unsold trailers. It is holding more parts and chassis. Operating cash flow fell to $321.2 million from $577.9 million, and the $73.3 million build in inventory is part of the reason.

The Verdict: Bull vs. Bear​

Bull Case

• Long-term debt is $865.1 million, down from $1,754.2 million in fiscal 2022, and unused availability under the revolving credit facility was about $815 million at year end. THOR can wait out a long trough.
• North American dealer inventory of THOR products is down 12.7%, to about 64,000 units, and towable backlog is up 74.6%. If retail merely stabilizes, wholesale shipments have to catch up to it.
• The margin loss was partly chosen. A company that "intentionally did not fully pass along cost increases" has a lever it has not pulled, and tariff refund claims it has not booked.
• Europe is now the largest RV segment at $3,296.7 million, with backlog up 8.4% and market share up to 23.9% from 23.4%. It is a second market on a different cycle.
• The four segment tables in Note 17 sum to $58.9 million of restructuring costs in fiscal 2026. The costs are in the numbers; the savings are not yet.

Bear Case

• Gross profit less SG&A and amortization fell 34.1%, to $197.1 million, and has fallen every year since fiscal 2022. The numbers do not yet support a bottom.
• Other income was 32.9% of pre-tax income. Gains on plant sales, warrants and currency are not a base to grow from.
• The retail numbers are still falling. THOR's North American retail registrations dropped 18.5% in the first half of calendar 2026, faster than the industry's 14.8%. The release's phrase "demand has not gone away" is a statement about the long term that the fiscal 2026 unit count does not support.
• The price increases are mix. Towable net price per unit rose 4.6%, which the 10-K attributes to product mix, while travel trailer units fell 22.4%. Selling fewer cheap units is not pricing momentum.
• Goodwill and amortizable intangibles are $2,600.8 million, 37.4% of total assets. The 10-K says that in the May 2026 test "multiple reporting units showed fair value exceeding carrying value by less than 25%," and those units hold about 80% of consolidated goodwill.

Our Take

THOR is a well-run company in a bad market, and the fiscal 2026 ledger shows both halves. The balance sheet is the strongest it has been in five years: half the debt, more equity, a dividend that rose every year. The income statement is the weakest: a 12.6% gross margin, a manufacturing result down by a third, and a pre-tax line that needed $78.5 million of other income to reach $238.7 million. We think the right number to watch in fiscal 2027 is not net sales, which held, and not net income, which carries plant-sale gains and a swinging tax rate. It is gross margin. THOR gave up 1.4 points to protect the price of an entry-level trailer. If the margin comes back while units stay flat, the bet on affordability worked. If it does not, fiscal 2026 was not the trough.