Thor Industries (THO) Stock Forecast & Price Target

Thor Industries has demonstrated a solid financial performance, with revenues of $2.39 billion in the first quarter of fiscal 2026, marking an 11.5% year-over-year increase. The company experienced an operating margin improvement of 110 basis points year-over-year, reaching 1.6%, driven by increased sales and efficiency measures, alongside a significant 21.5% rise in Adjusted EBITDA to $131.0 million. Notably, the backlog for the company surged by 29.3% year-over-year to $1.005 billion, highlighting strong demand and positioning Thor Industries for future growth.

Thor Industries has encountered significant challenges, with European segment gross profit declining by 340 basis points year-over-year to 11.9%, primarily due to a higher mix of lower-margin products and increased promotional and warranty costs. The company's Travel Trailer and Campervan revenues saw substantial decreases of 16.0% and 20.1% year-over-year, respectively, with unit sales dropping sharply and average selling prices only providing a modest offset. Additionally, the segment backlog has shrunk by 29.7% year-over-year to $656.0 million, coupled with a reduction in dealer inventory, raising concerns about future demand and operational efficiency.