Recreational vehicle (RV) manufacturer Thor Industries, Inc. (NYSE:THO) shares are trading lower on Tuesday. The company reported second-quarter FY26 results and below-consensus outlook.

Earnings Snapshot

The company clocked earnings per share of 34 cents, significantly beating the analyst consensus of three cents.

Quarterly sales of $2.126 billion, up 5.3% year over year (Y/Y), outpaced the Street view of $1.962 billion.

Gross profit grew 2.5% Y/Y to $251.3 million, while margins contracted 30 basis points Y/Y to 11.8%.

Adjusted EBITDA increased 12.7% Y/Y to $98.1 million in the quarter.

The company ended the period with $242.2 million in cash and equivalents.

Segment Performance

The North American Towable RV segment experienced a 14.2% Y/Y decrease in net sales, totaling $710.5 million for the quarter. Unit shipments were down 23.0% Y/Y in the quarter. The backlog for this segment was $621 million.

Given the decline in sales and shipments, the segment's gross profit margin contracted by 50 basis points to 10.6%.

The North American Motorized RV segment ...