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Jan 31, 2021

Thor Q2 2021 Earnings Report

Thor Industries' Q2 2021 earnings surged with a 36% increase in net sales and a gross profit margin improvement of 240 basis points.

Key Takeaways

Thor Industries reported record second-quarter results, driven by strong demand and increased production. Net sales rose by 36.2% to $2.73 billion, with a gross profit margin of 15.2%. Earnings per share increased significantly to $2.38, reflecting a strong financial performance.

Net sales increased by 36.2% compared to the prior year, reaching $2.73 billion.

Gross profit margin improved by 240 basis points to 15.2%.

Net income attributable to THOR rose by 362.2% to $132.5 million, with EPS at $2.38.

RV backlog increased by nearly 280% year-over-year, reaching $10.81 billion.

Total Revenue
$2.73B
Previous year: $2B
+36.2%
EPS
$2.38
Previous year: $0.67
+255.2%
Gross Margin
15.2%
Previous year: 12.8%
+18.7%
Gross Profit
$415M
Previous year: $256M
+61.8%
Cash and Equivalents
$187M
Previous year: $246M
-24.1%
Total Assets
$6.37B
Previous year: $5.63B
+13.2%

Thor

Thor

Thor Revenue by Segment

Forward Guidance

THOR anticipates continued strength in the RV industry for the remainder of the fiscal year, while managing temporary supply chain issues. The company expects demand to outpace supply in the near term and foresees a transition to a dealer restocking cycle in calendar 2022.

Positive Outlook

  • Continued strength in the RV industry.
  • Demand for products outpacing supply in the near term.
  • Strategic investments in business to increase production capacity.
  • Transition to a dealer restocking cycle in calendar 2022.
  • Millennials are buying RVs earlier than previous generations.

Challenges Ahead

  • Temporary supply chain issues may limit output.
  • Delays in chassis deliveries and other supply chain constraints from European suppliers.
  • Supply constraints and shortages of various RV component parts in North America.
  • Harsh weather conditions impacting the availability of certain petroleum-based components.
  • Supply chain challenges are expected to continue in the near term.

Revenue & Expenses

Visualization of income flow from segment revenue to net income