THOR Industries, Inc. (THO) Bundle
A Brief History of THOR Industries, Inc.
THOR Industries, Inc. is a leading manufacturer of recreational vehicles (RVs) based in Elkhart, Indiana. The company was founded in 1980 and has grown through a series of mergers and acquisitions, establishing a strong presence in the RV market.
Key Milestones
- 1980: THOR Industries was founded, initially focusing on the production of travel trailers.
- 1991: Acquired Airstream, Inc., a well-known manufacturer of travel trailers and motorhomes.
- 1995: Merged with the Coachmen Industries, significantly expanding its product offerings.
- 2001: Acquired the Dutchmen Manufacturing, enhancing its market share in the towable RV segment.
- 2004: Purchased the Keystone RV Company, further solidifying its position in the RV market.
- 2010: Acquired Heartland Recreational Vehicles, which broadened its portfolio of fifth-wheel and travel trailer brands.
- 2020: Completed the acquisition of the Erwin Hymer Group, marking its entry into the European market.
Financial Performance
As of July 31, 2024, THOR Industries reported net sales of $10,043,408,000, a decrease from $11,121,605,000 in 2023. The gross profit for the fiscal year was $1,451,862,000, down from $1,703,431,000 in the previous year.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Net Sales | $10,043,408,000 | $11,121,605,000 | $16,312,525,000 |
| Gross Profit | $1,451,862,000 | $1,703,431,000 | $2,488,000,000 |
| Net Income | $265,400,000 | $374,240,000 | $1,138,243,000 |
| Earnings per Share | $3.95 | $5.62 | $17.38 |
Dividends and Share Repurchases
THOR Industries has a history of returning capital to shareholders through dividends. In fiscal 2024, the company paid a quarterly dividend of $0.48 per share, totaling $102,137,000 for the year. This represents an increase from the $0.45 dividend paid per share in fiscal 2023.
The company has actively repurchased shares, utilizing a total of $68,387,000 to buy back 720,997 shares at an average price of $94.85 during fiscal 2024. The remaining authorization for share repurchases as of July 31, 2024, was $422,820,000.
Market Position and Challenges
As of 2024, THOR Industries continues to hold a leading position in the North American RV market, with a diverse range of products catering to various consumer preferences. However, the company faces challenges including supply chain constraints, increased interest rates, and inflation affecting consumer spending, which have negatively impacted demand for RVs.
Despite these challenges, THOR Industries remains committed to innovation and efficiency to enhance its competitive advantage in the evolving RV market.
Recent Developments
In November 2023, THOR Industries amended its credit agreements to extend maturities and lower interest rates, with the term loan maturity extended to November 15, 2030. This financial maneuver is expected to provide greater flexibility in managing capital amidst a fluctuating economic environment.
For the fiscal year ending July 31, 2024, the company incurred capital expenditures totaling $139,635,000, primarily for enhancing production facilities and equipment. This investment reflects THOR's strategy to maintain operational efficiency and meet consumer demand in a challenging market.
As of July 31, 2024, THOR Industries reported total assets of $3,983,398,000 and total liabilities of $2,681,000,000, indicating a strong balance sheet position.
Overall, THOR Industries continues to navigate the complexities of the RV market while pursuing growth opportunities and optimizing its operational capabilities.
A Who Owns THOR Industries, Inc. (THO)
Major Shareholders
As of 2024, THOR Industries, Inc. (THO) has a diverse ownership structure. The largest shareholders are typically institutional investors, mutual funds, and individual stakeholders. Below is a table detailing the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage (%) | Type of Holder |
|---|---|---|
| The Vanguard Group, Inc. | 10.7 | Institutional Investor |
| BlackRock, Inc. | 9.4 | Institutional Investor |
| State Street Corporation | 6.2 | Institutional Investor |
| FMR LLC (Fidelity) | 5.8 | Institutional Investor |
| Invesco Ltd. | 4.6 | Institutional Investor |
| Wellington Management Group LLP | 4.1 | Institutional Investor |
| Other Individual and Institutional Investors | 59.2 | Various |
Shareholder Composition
As of July 31, 2024, the total number of outstanding shares of THOR Industries was approximately 53.2 million shares. The distribution of these shares is heavily influenced by institutional investors, which collectively own a significant portion.
Recent Stock Performance
The stock price of THOR Industries has exhibited volatility in the market. As of July 31, 2024, the closing stock price was $88.37, with a 52-week high of $129.31 and a low of $84.55. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $88.37 |
| 52-Week High | $129.31 |
| 52-Week Low | $84.55 |
| Market Capitalization | $4.7 billion |
| Dividend (Annual) | $1.92 per share |
Insider Ownership
Insider ownership is also an important aspect of THOR Industries’ ownership structure. As of 2024, insiders hold approximately 3.5% of the total shares. Key insiders include:
- Bob Martin - President & CEO
- Colin McNulty - CFO
- Other executive officers and directors
Ownership Changes and Trends
Over the past year, there has been a notable trend of increased institutional investment in THOR Industries, reflecting confidence in the company's long-term growth prospects. In addition, the company has engaged in share repurchase programs, which have influenced the overall ownership structure.
| Date | Repurchased Shares | Average Price |
|---|---|---|
| July 31, 2024 | 720,997 | $94.85 |
| Previous Fiscal Year | 549,532 | $85.70 |
The ownership of THOR Industries, Inc. is characterized by a strong institutional presence, steady insider holdings, and active management of share repurchase programs, which collectively shape its capital structure and market position.
THOR Industries, Inc. (THO) Mission Statement
Company Overview
THOR Industries, Inc. is a leading manufacturer of recreational vehicles (RVs) in North America and Europe. The company operates through several subsidiaries, including Airstream, Keystone RV, and Thor Motor Coach, and is committed to delivering high-quality products that enhance the outdoor lifestyle of its customers.
Mission Statement
As of 2024, THOR Industries, Inc. expresses its mission to "create lasting memories for our customers by providing innovative, high-quality recreational vehicles and exceptional customer service. We strive to lead the RV industry with integrity and sustainability, focusing on our customers, employees, and the communities we serve."
Financial Performance Overview
THOR's financial performance in fiscal year 2024 reflects the company's resilience in a challenging market. The following table summarizes key financial metrics:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $10,043,408 | $11,121,605 | ($1,078,197) | (9.7) |
| Gross Profit | $1,451,962 | $1,596,353 | ($144,391) | (9.0) |
| Net Income | $265,400 | $374,240 | ($108,840) | (29.1) |
| Earnings per Share (Basic) | $4.98 | $7.00 | ($2.02) | (28.8) |
| Cash and Cash Equivalents | $501,316 | $441,232 | $60,084 | 13.6 |
Market Segments and Sales Performance
THOR Industries operates primarily in the RV sector, which includes both Towable and Motorized vehicles. The following data illustrates the breakdown of net sales by segment:
| Segment | 2024 Net Sales ($) | 2023 Net Sales ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| North American Towable | $6,125,521 | $7,516,798 | ($1,391,277) | (18.5) |
| North American Motorized | $2,445,850 | $3,314,170 | ($868,320) | (26.2) |
| European | $3,364,980 | $3,037,147 | $327,833 | 10.8 |
Order Backlog
The order backlog is a significant indicator of future sales potential. As of July 31, 2024, THOR's order backlog is as follows:
| Segment | 2024 Backlog ($) | 2023 Backlog ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| North American Towable | $552,379 | $756,047 | ($203,668) | (26.9) |
| North American Motorized | $776,903 | $1,242,936 | ($466,033) | (37.5) |
| European | $1,950,793 | $3,549,660 | ($1,598,867) | (45.0) |
Conclusion
THOR Industries remains committed to its mission of providing high-quality recreational vehicles while navigating a challenging market environment. The company continues to focus on innovation, sustainability, and customer satisfaction as it strives to lead the RV industry.
How THOR Industries, Inc. (THO) Works
Overview of Business Segments
THOR Industries, Inc. operates through three primary segments related to recreational vehicles:
- North American Towable Recreational Vehicles
- North American Motorized Recreational Vehicles
- European Recreational Vehicles
Financial Performance
For the fiscal year ending July 31, 2024, THOR Industries reported the following key financial metrics:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $10,043,408 | $11,121,605 | $(1,078,197) (-9.7%) |
| Gross Profit | $1,451,962 | $1,596,353 | $(144,391) (-9.0%) |
| Net Income | $265,400 | $374,240 | $(108,840) (-29.1%) |
| Earnings per Share (Basic) | $4.98 | $7.00 | $(2.02) (-28.9%) |
Sales Breakdown by Segment
The following table outlines the net sales by segment for fiscal 2024 compared to fiscal 2023:
| Segment | 2024 Net Sales | 2023 Net Sales | Change |
|---|---|---|---|
| North American Towable | $3,679,671 | $4,202,628 | $(522,957) (-12.4%) |
| North American Motorized | $2,445,850 | $3,314,170 | $(868,320) (-26.2%) |
| European Recreational Vehicles | $3,364,980 | $3,037,147 | $327,833 (10.8%) |
Cost Structure
THOR Industries' cost structure includes significant expenses related to cost of goods sold and operating expenses:
| Expense Type | 2024 | 2023 | Change |
|---|---|---|---|
| Cost of Goods Sold | $8,591,446 | $9,525,252 | $(933,806) (-9.8%) |
| Selling, General, and Administrative Expenses | $895,531 | $870,054 | $25,477 (2.9%) |
| Amortization of Intangible Assets | $132,544 | $140,808 | $(8,264) (-5.9%) |
Balance Sheet Highlights
As of July 31, 2024, THOR Industries reported the following balance sheet items:
| Item | Amount |
|---|---|
| Total Assets | $7,020,823 |
| Total Liabilities | $2,480,770 |
| Total Stockholders' Equity | $4,074,053 |
Cash Flow Overview
For the fiscal year ending July 31, 2024, THOR Industries reported cash flows as follows:
| Cash Flow Category | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $545,548 |
| Net Cash Used in Investing Activities | $(146,812) |
| Net Cash Used in Financing Activities | $(337,677) |
Market Position and Challenges
THOR Industries faces challenges including decreased dealer and consumer demand in North America, while experiencing growth in the European market. The following statistics highlight the market dynamics:
- Order Backlog (as of July 31, 2024): $3,280,075, down 40.9% from $5,548,643 in 2023.
- Approximately 34% of the Company’s net sales were transacted in currencies other than the U.S. dollar, with significant exposure to the Euro.
Future Outlook
THOR Industries continues to monitor market conditions and consumer preferences, focusing on maintaining operational efficiency and adapting to market demands.
How THOR Industries, Inc. (THO) Makes Money
Revenue Breakdown
THOR Industries, Inc. generates revenue primarily through the sale of recreational vehicles (RVs), which are categorized into three main segments: North American Towable, North American Motorized, and European Recreational Vehicles.
| Segment | Fiscal 2024 Net Sales ($) | Fiscal 2023 Net Sales ($) | % Change |
|---|---|---|---|
| North American Towable | 3,679,671 | 4,202,628 | -12.4 |
| North American Motorized | 2,445,850 | 3,314,170 | -26.2 |
| Total North America | 6,125,521 | 7,516,798 | -18.5 |
| European | 3,364,980 | 3,037,147 | 10.8 |
| Total Recreational Vehicles | 9,490,501 | 10,553,945 | -10.1 |
| Other | 781,927 | 777,639 | 0.6 |
| Total | 10,043,408 | 11,121,605 | -9.7 |
Cost of Goods Sold and Gross Profit
For fiscal 2024, THOR reported a cost of products sold amounting to $8,591,446, resulting in a gross profit of $1,451,962, which represents 14.5% of total net sales.
Income Before Income Taxes
In fiscal 2024, THOR Industries recorded an income before income taxes of $348,844, a decrease of 30.1% compared to fiscal 2023.
| Category | Fiscal 2024 ($) | Fiscal 2023 ($) | % Change |
|---|---|---|---|
| Income Before Income Taxes | 348,844 | 499,353 | -30.1 |
| Net Income | 265,400 | 374,240 | -29.1 |
Segment Analysis
The North American Towable segment includes products such as travel trailers and fifth wheels, while the North American Motorized segment includes Class A, B, and C motorhomes. The European segment also contributes significantly to revenue, showing a positive growth trend in fiscal 2024.
| Segment | Net Sales FY 2024 ($) | Net Sales FY 2023 ($) | Gross Profit FY 2024 ($) | Gross Profit FY 2023 ($) |
|---|---|---|---|---|
| North American Towable | 3,679,671 | 4,202,628 | 427,386 | 503,487 |
| North American Motorized | 2,445,850 | 3,314,170 | 277,840 | 442,715 |
| European | 3,364,980 | 3,037,147 | 581,211 | 505,344 |
Operating Expenses
For fiscal 2024, THOR Industries' selling, general, and administrative expenses increased to $895,531, up 2.9% from $870,054 in fiscal 2023. This increase was driven by higher sales-related travel, advertising, promotional costs, and legal fees.
Order Backlog
As of July 31, 2024, THOR's total order backlog was $3,280,075, a significant decrease of 40.9% compared to $5,548,643 in the previous year. This decline reflects reduced dealer orders and consumer demand.
| Segment | Order Backlog FY 2024 ($) | Order Backlog FY 2023 ($) | % Change |
|---|---|---|---|
| North American Towable | 552,379 | 756,047 | -26.9 |
| North American Motorized | 776,903 | 1,242,936 | -37.5 |
| European | 1,950,793 | 3,549,660 | -45.0 |
Cash Flow and Liquidity
THOR reported net cash provided by operating activities of $545,548 for fiscal 2024, down from $981,633 in fiscal 2023. As of July 31, 2024, THOR held cash and cash equivalents totaling $501,316.
| Cash Flow Category | Fiscal 2024 ($) | Fiscal 2023 ($) |
|---|---|---|
| Net Cash Provided by Operating Activities | 545,548 | 981,633 |
| Cash and Cash Equivalents | 501,316 | 441,232 |
Dividend Payments
In fiscal 2024, THOR Industries paid cash dividends of $0.48 per common share each quarter, maintaining a consistent dividend policy.
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