Thor incentives increase 6% YoY in Q2

Thor Industries increased its promotional and rebate liabilities year over year in the second quarter of its fiscal 2026 as the RV retailer continues to work with dealers to align inventory . Thor’s promotional and rebate liabilities rose 6% YoY and 1.3% quarter over quarter to $144.6 million in Q2, according to an Auto Finance News analysis of the retailer’s 10-Q filings with the SEC . Higher material and overhead costs, partly offset by favorable product mix, lower warranty costs , and improved structure following the Heartland realignment, contributed to a 2.5% YoY rise in gross profit to $251.3 million, the company said in a March 3 Q&A release accompanying the earnings release. Thor did not host an earnings call. “We have closely monitored channel inventory so as to manage promotional activity needs, with dealer inventories of THOR Towable products declining 11.1% compared to the prior-year period,” management said. “Our disciplined production approach, while navigating macroeconomic headwinds and seasonally slower winter months, has positioned us to sustain and expand resilient margins going forward.” Q2 sales, shipments mixed Thor’s net sales were mixed in Q2 as towable shipments dropped YoY but motorized segment sales jumped. Towable net sales in North America reached $710.5 million in Q2, down 14.2% YoY and down 20.8% QoQ, according to the March 3 filing. Net sales fell as Q2 towable shipments dropped to 21,577 units, down 23% YoY and 16.4% QoQ, while overall net price per unit increased 8.8% YoY. Meanwhile, motorized net sales in North America hit $577.1 million in Q2, up 29.3% YoY but down 12.7% QoQ, according to the 10-Q filing. Motorized net sales totaled 4,524 units in Q2, up 28.3% YoY but down 8.6% QoQ, as overall net price per unit for motorized rose 1% YoY. Overall, retail trends remain in line with prior guidance despite weather-related slowdowns and seasonal softness, and Thor continues to expect a low- to mid-single-digit decline in North American retail for fiscal 2026, according to the Q&A release. “Our towable retail sales trend outperformed the overall industry trend compared to the prior-year period, while, on the motorized side, we saw retail growth beyond industry trends for our Class C products during the same comparative periods,” management said. “As new and reconfigured products arrive at dealer lots, we are confident in our ability to build upon these positive retail trends.” Due to weather-related slowdowns and more conservative dealer ordering, Thor appears more cautious this quarter while maintaining expectations for a low- to mid-single-digit decline in demand and stable market share, according to a research note from BMO Capital Markets released on March 3. Inventory down, backlogs up Thor’s independent dealer inventory in North America was approximately 79,100 units in Q2, down 8.2% YoY but up 11.6% compared with Q1, according to the 10-Q filing. Dealers remain cautiously optimistic entering spring due to fresh product activity, but tariff uncertainty and mixed consumer sentiment, as well as the U.S. and Israel-Iran war , continue to cloud the outlook, the company said in the Q&A. “ Overall, we expect that dealers will continue to prudently manage inventories until a market inflection dictates a change in course as the upcoming spring selling season gets underway,” management said. Combined North American order backlogs dropped 24.3% YoY to $1.7 billion in Q2, as towable backlogs plummeted 42.1% YoY, which amounted to $621.5 million, according to the filing. Motorized backlogs, by comparison, fell 7.3% YoY to $1 billion. Shares of Thor Industries [ NYSE: THO ] were trading down 5.6% or $5.32 from market open to $90.37 as of market close. Thor Industries has a market capitalization of $5.1 billion. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

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Thor incentives increase 6% YoY in Q2

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