Thor Industries Inc (THO) Q2 2024 Earnings Report

Thor Industries reported Q2 2024 revenue of $2.2076 billion, reflecting a year-over-year decline of 5.9% and a quarter-over-quarter decline of 11.7%. Gross profit was $305.1 million, yielding a gross margin of 13.82%. Operating income came in at $18.5 million (operating margin 0.84%), while net income totaled $7.22 million with basic earnings per share of $0.14 and diluted $0.13. EBITDA was $86.38 million (3.9% EBITDA margin). The company posted negative free cash flow of $-144.56 million as operating cash flow was negative $103.87 million and capital expenditures totaled $40.69 million. A substantial working capital shift driven by higher inventory and receivables contributed to roughly $173.42 million of cash consumption in the quarter. On the balance sheet, Thor held $340.2 million in cash and cash equivalents, total assets of $7.226 billion, and stockholders’ equity of $3.936 billion against total liabilities of $3.283 billion, yielding a debt-to-capitalization profile around 28%. However, near-term liquidity appears sensitive to working capital dynamics given an interest coverage of 0.66x and negative operating cash flow. The earnings per share decline (YoY ~-72.6%, QoQ ~-86.0%) underscores the cyclicality of the RV space, ongoing margin pressure, and the sensitivity of cash generation to working capital investments. Investors should monitor dealer inventory levels, category mix (travel trailers vs. motorhomes), demand trends, and the pace of any normalization in supply chain costs as potential catalysts or headwinds for the remainder of 2024.