Thor Industries reported a Q3 2024 of $2.801 billion in revenue, down 4.35% year over year but up 26.90% sequentially, reflecting the seasonality typical of the RV cycle. Gross profit was $474.141 million with a gross margin of 16.93%, while operating income reached $163.299 million (operating margin ~5.83%) and net income was $114.511 million, or about $2.15 per share. The quarter delivered notable free cash flow of $224.564 million and robust operating cash flow of $251.732 million, supporting a strong liquidity position despite a moderate debt load. Thor finished the period with cash and cash equivalents of $371.819 million and a net debt position of $987.608 million, underscoring a disciplined balance sheet with ample liquidity to fund product launches, dealer incentives, or selective shareholder returns.
The quarterly dynamics reveal a pronounced QoQ acceleration in profitability metrics (e.g., operating income up ~783% QoQ) while YoY comparisons reflect cyclical headwinds in consumer discretionary spending and seasonal inventory timing. Profitability improved on a higher-margin product mix and favorable product mix shifts, yet year-over-year revenue declined modestly due to industry-wide demand volatility and channel inventory fluctuations. Thor’s free cash flow generation is solid, with FCF yield around 8% of revenue for the quarter, supporting deleveraging opportunities and potential strategic initiatives.
Looking ahead, Thor’s near-term outlook will hinge on RV demand stability, dealer inventory normalization, and supply-chain efficiency. While no formal full-year guidance is embedded in the QQ3 2024 release dataset, the company’s balance sheet strength and cash generation provide latitude to fund growth investments, new product introductions, and potential acquisitions, should the market demonstrate improved demand through the back half of the year.