THOR Industries FY2026 10-K: Net Income Falls 31% to $177.5M Amid Restructuring and Tariff Pressure
THO is trading near its 52-week low of $67.31 (5.1% above the low) on elevated volume (2.1× avg).
Summary
THOR Industries reported fiscal 2026 net income of $177.5 million, down 31% year-over-year, as lower-margin product mix and absorbed material costs compressed gross profit. The 10-K also details $58.9M in restructuring charges, a narrow goodwill impairment cushion, and a new CIO employment agreement.
Key Events · Earnings and Guidance · THO
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FY2026 Net Income Falls 31%
Net income attributable to THOR dropped to $177.5 million from $258.6 million in fiscal 2025, with diluted EPS of $3.38 versus $4.84. Gross profit fell 9.5% to $1.21 billion on a 0.3% revenue increase to $9.61 billion.
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Margin Compression from Mix and Costs
Gross margin declined to 12.6% from 14.0%, driven by unfavorable product mix toward lower-margin North American Towable and European units, plus material cost increases the company intentionally did not fully pass through to dealers to preserve affordability.
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Restructuring Charges Total $58.9M
Restructuring costs across North American Towable ($29.3M), European ($25.2M), North American Motorized ($3.9M), and Other/Corporate ($0.5M) segments included severance, facility closures, and asset impairments.
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Goodwill Impairment Risk Elevated
Approximately 80% of the $1.92 billion goodwill balance sits in reporting units where fair value exceeded carrying value by less than 25% as of the May 31, 2026 annual test. No impairment was recorded, but the cushion is thin.
Analysis · THO · Manufacturing
Fiscal 2026 net income attributable to shareholders fell 31.3% to $177.5 million from $258.6 million a year earlier, with diluted EPS down to $3.38 from $4.84. The decline reflects a 9.5% drop in gross profit to $1.21 billion, driven by unfavorable product mix toward lower-margin units and material cost increases the company chose not to fully pass through to dealers. Management also disclosed $58.9 million in restructuring costs across all segments and flagged that roughly 80% of its $1.92 billion goodwill sits in reporting units where fair value exceeded carrying value by less than 25% — a narrow cushion that could trigger future impairments if RV demand stays weak. The company repurchased $115.1 million of stock during the year and has $264.2 million remaining under its authorization, while also entering a new employment agreement with CIO Ryan Biren that includes 2x salary severance and a two-year non-compete. The subsequent September 10, 2026 announcement to unify North American RV operations into three groups adds another layer of organizational change heading into fiscal 2027.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 28.9% of the 1668 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, THO was trading at $70.73 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.6B. The 52-week trading range was $67.31 to $122.83. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.