Thor Industries Inc (NYSE:THO) stock rose 5.14% (As on September 24, 11:27:50 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that significantly exceeded analyst expectations. The company generated $577.9 million in cash from operations during fiscal 2025, which it used to reduce debt by approximately $237 million and return $158.8 million to shareholders through dividends and stock repurchases. Thor’s order backlog showed mixed results across segments, with North American Motorized backlog increasing 29.3% to $1.0 billion, while North American Towable and European backlogs declined by 5.0% and 21.8%, respectively. The company’s annual Open House event has just kicked off, giving them an opportunity to connect with the customers and showcase the exciting new products the company have to offer.

Moreover, The North American Towable and North American Motorized segments saw market share inflect in the period as strategic initiatives executed throughout the fiscal year continued to gain traction. Dealer inventory turns improved sequentially and the channel is appropriately positioned heading into the fall. Strategic organizational restructuring progressed during the quarter and puts THOR in a favorable position to achieve additional operating efficiencies. Thor Industries’ North American Motorized RV segment was a bright spot, with sales increasing 7.8% to $557.4 million compared to the prior year, driven by a 15.9% increase in unit shipments. However, the North American Towable segment saw sales decline 4.6% to $888.7 million, with unit shipments down 10.1% as the company managed channel inventory. European RV sales decreased 2.2% to $923.1 million.

THO in the fourth quarter of FY 25 has reported the adjusted earnings per share of $2.36, beating the analysts’ estimates for the adjusted earnings per share of $1.25. The company had reported the adjusted revenue decline of 0.4 percent to $2.52 billion in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $2.34 billion. Despite the challenging macro environment, the company was able to generate over $577.9 million of cash from operations, which the company used to further invest in the business, fund returns to shareholders and reduce debt.

For fiscal year 2026, Thor Industries provided guidance for revenue between $9.0 billion and $9.5 billion, compared to the analyst estimate of $9.32 billion. The company expects earnings per share of $3.75 to $4.25, in line with the analyst consensus of $3.82. The company expects stable gross margin at midpoint, with upside in a stronger market and guidance assumes a low- to mid-single digit retail decline in North America with stable market share