Throughout the pandemic, Thor Industries was profitable. Even during its fiscal third quarter of 2020, when manufacturing shut down for nearly half the period, Thor reported quarterly profits.
A string of 22 straight quarters of profitability ended in the fiscal first quarter of 2025. Thor Industries reported Wednesday the company lost $873,000 in the quarter, the first quarterly loss since the fiscal second quarter of 2019.
President and CEO Bob Martin said the retail and wholesale environment remained soft in the quarter ending Oct. 31.
“Our focus is to control what we can control in the challenging market,” he said. “…Our industry has a history that includes OEMs being too aggressive during market conditions similar to those which we are currently experiencing….We have been very intentional and disciplined in avoiding that temptation.”
In response, Thor Industries said the company streamlined and flattened the organization to perform more efficiently.
Thor Senior Vice President and Chief Operating Officer Todd Woelfer said, “During the quarter, we eliminated the management layer between our North American RV subsidiaries and our CEO. This will allow for Bob to return to his hands-on approach of leading and guiding these companies.”
In November, RV Group Manager Matt Zimmerman stepped down from his role. Zimmerman and Chris Hermon shared oversight of Thor Industries’ brands until Hermon’s retirement in 2022.
Consolidated sales dropped 14.3% to $2.14 billion, compared with 2024’s fiscal first quarter.
The company’s North American Motorized RV segment net sales decreased 29% compared with the same period last year. Thor attributed the drop to a 33% reduction in RV shipments stemming from current dealer demand.
Martin said the company continues to “focus on aligning our production to match the current retail environment and avoiding growth of independent dealer inventory levels of our products until market conditions indicate otherwise.”
The motorized net sales were partially offset by a 4% increase in net price per RV, because the product mix included higher-priced Type A motorhomes.
The North American Towable segment posted a 5% decrease in net sales. The segment’s gross profit margins remained at 12.5%, consistent with the same period last year.
Controllables and Long-Term Growth
Thor closed an Idaho plant during the quarter, generating closure-related costs and employee separation amounting to $15.5 million.
Woelfer said he anticipated the second quarter to remain challenging with stronger figures in the second half of 2025.
He said, “The real story for Thor, though, is that Thor has positioned itself incredibly well for a strong performance upon the market’s return.”
The manufacturer reported its dealer base had about 75,000 RVs in inventory, even with fiscal fourth quarter of 2024 levels and down about 10% from its fiscal first-quarter level in 2024. The company said the low inventory levels position Thor Industries to outperform the market “when the inevitable market recovery occurs.”
According to Martin, the manufacturer’s attendance at Elkhart Extravaganza and the Caravan Salon in Dusseldorf, Germany, was “incredibly strong and gives us a reason to remain optimistic about what lies ahead.”
