THO

THOR is the global #1 RV manufacturer with commanding North American share (~39.1% travel trailers/fifth wheels, ~48.3% motorhomes per Stat Surveys H1 2025) and meaningful European exposure (~26.1% motorcaravans/campervans via EHG). The numbers, however, show a cycle still working through pain: FY2025 revenue of $9.58B is down 4.6% YoY and ~41% off the FY2022 peak of $16.3B, while net income of $259M (margin just 2.7%) sits 77% below FY2022's $1.14B. Gross margin compressed to 14.0% and ROE to 6.0% — clearly trough-of-cycle, not structurally broken. Management's MD&A is candid: consumer confidence, inflation on discretionary spend, and 'higher interest rates compared to recent years' weighed on both wholesale and retail demand in fiscal 2025, with the pressure 'expected to continue to impact the remainder of calendar year 2025 and into calendar 2026.'

The filing also flags genuine green shoots. North American RV backlog grew 15.1% YoY to $1.53B as of July 31, 2025, driven primarily by motorized recovery, and H1 2025 industry wholesale towable shipments rose 7.9%. Dealer inventory shrank 2.3% to ~73,300 units and management believes stocking levels are 'generally in line' with current retail — meaning future production should track retail rather than absorb destocking. Balance sheet is solid: long-term debt fell 16.5% to $920M, cash rose 17.0% to $587M, equity $4.29B, term-loan maturity pushed to Nov-2030 with a 50bp margin cut on USD tranche. OCF of $578M (up 5.9%) comfortably covers $122M capex and $53M buybacks.