Thor Industries Inc (0LF8.L) Q1 2025 Earnings Report

Thor Industries reported a cautious start to QQ1 2025 with a clear step down in revenue and profits against a softer RV market backdrop. Revenue totaled $2.1428 billion, down 14.3% year over year and 15.4% quarter over quarter, while EBITDA reached $81.7 million (EBITDA margin ~3.8%), and operating income was $41.2 million (operating margin ~1.9%). Net income was a nominal loss of $1.8 million, yielding a negative EPS of $0.0346. The results reflect challenging near-term demand dynamics, dealer inventory normalization, and higher other expenses that weighed on profitability. On the flip side, Thor preserves a strong liquidity position and positive operating cash flow, highlighting a resilient balance sheet that supports continued investment and a potential rebound as RV demand stabilizes.

From a balance sheet perspective, Thor entered the quarter with $445.2 million in cash and cash equivalents and a net debt position of approximately negative $413 million, underscoring substantial liquidity given limited near-term debt obligations. The company generated $30.7 million of operating cash flow and $5.5 million of free cash flow, despite reporting a net loss. This cash-generative capability provides a buffer for working capital needs and capital allocation opportunities as the industry cycles.

Looking ahead, the near-term outlook remains uncertain due to macro headwinds in consumer spending and RV financing, along with seasonality effects in the RV cycle. Management commentary is not included in the provided transcript data, but the fundamental strength of Thor’s cash position and modest leverage suggests the firm is well-positioned to weather a softer period. The key questions for investors are whether demand will stabilize in the coming quarters, if Thor can meaningfully improve margins through cost discipline or mix, and how quickly dealer inventories normalize as financing conditions possibly ease. The stock trades with premium valuation metrics, reflecting the asset-light, cash-generative profile of the business, but investors should carefully weigh cyclicality against the durability of Thor’s cash generation and balance sheet strength.