Thor Industries’ QQ2 2025 results reflect a high-quality cash-generating business navigating a seasonal, cyclically sensitive RV market. Revenue of $2.019 billion declined 8.6% year over year and 5.8% quarter over quarter, driven by softer demand and dealer inventory normalization in a challenging macro backdrop. Despite top-line pressure, the company delivered EBITDA of $76.37 million and a positive operating margin of 0.48%, underscoring a resilient cost structure and continued capacity to manage overhead in a lower-volume environment. Net income virtually broke even at a loss of $0.55 million, with a net margin of -0.03%, due to a negative total other income/expense line and a modest tax impact. Importantly, Thor generated $30.8 million of operating cash flow, invested $26.3 million in capex, and produced $4.6 million of free cash flow, leaving a cash balance of ~$373.8 million and a net debt position of ~$657.3 million. The balance sheet remains robust with total assets of $6.71 billion and substantial goodwill/intangible assets (approx. $2.54 billion combined), reflecting a capital-light, scale-based RV platform. Liquidity indicators show a solid current ratio of 1.71 but a relatively modest quick ratio (~0.78) and cash ratio (~0.25), signaling working capital sensitivity in a downturn. Looking ahead, the company faces a cyclical path with near-term earnings volatility, yet continues to generate meaningful cash that supports potential deleveraging, shareholder-friendly capital allocation, and strategic investments to address secular RV demand drivers. The valuation backdrop (negative earnings multiple and strong multiple of sales) suggests market skepticism about short-term profitability, but the cash-generation profile and long-duration RV demand tailwinds could support a gradual earnings recovery as demand improves and operating leverage materializes.