Thor Industries (THO) Stock Forecast & Price Target

Thor Industries demonstrated strong financial performance in the first quarter of fiscal 2026, reporting a revenue increase of 11.5% year-over-year to $2.39 billion alongside an operating margin improvement of 110 basis points to 1.6%, driven by enhanced sales and efficiency initiatives. The company also saw a significant rise in its adjusted EBITDA, which grew by 21.5% to $131.0 million, indicating robust operational growth despite challenges in the European RV segment. Furthermore, the backlog increased by 29.3% year-over-year to $1.005 billion, signaling strong future demand across its various product lines.

Thor Industries has reported a significant decline in its European segment gross profit, which decreased 340 basis points year-over-year to 11.9%, primarily due to a shift towards lower-margin products and increased costs related to promotions and warranties. Additionally, travel trailer revenues fell 16.0% year-over-year to $506.0 million, with unit sales experiencing a substantial decrease of 21.8%, compounded by a 29.7% y/y drop in segment backlog to $656.0 million. This overall trend is further reflected in campervan and caravan revenues, which also witnessed double-digit declines, suggesting a weakening demand across key product lines that raises concerns about the company's future financial performance.