THOR INDUSTRIES INC

Previous wording

•the ability to ramp production up or down quickly in response to rapid changes in demand while also managing costs and market share;

Current wording

•the ability to ramp production up or down quickly in response to rapid changes in demand or market share while also managing associated costs, including labor-related costs and production capacity costs;

Previous wording

•the impact of an adverse outcome or conclusion related to current or future litigation or regulatory investigations;

Current wording

•the impact of an adverse outcome or conclusion related to current or future litigation or regulatory audits or investigations;

Previous wording

•lower consumer confidence and the level of discretionary consumer spending;

Current wording

•the level of consumer confidence and the level of discretionary consumer spending;

Previous wording

We were founded in 1980 and have grown to become the largest manufacturer of recreational vehicles (“RVs”) in the world based on units sold and revenue. We are also the largest manufacturer of RVs in North America, and one of the largest manufacturers of RVs in Europe. In North America, according to Statistical Surveys, Inc. (“Stat Surveys”), for the calendar year ended December 31, 2024, THOR’s current combined U.S. and Canadian market share based on units sold was approximately 39.0% for travel trailers and fifth wheels combined and approximately 47.2% for motorhomes. In Europe, according to the European Caravan Federation (“ECF”), our European market share for the calendar year ended December 31, 2024 was approximately 24.9% for motorcaravans and campervans combined and approximately 18.0% for caravans.

Current wording

We were founded in 1980 and have grown to become the largest manufacturer of recreational vehicles (“RVs”) in the world based on units sold and revenue. We are also the largest manufacturer of RVs in North America, and one of the largest manufacturers of RVs in Europe. In North America, according to Statistical Surveys, Inc. (“Stat Surveys”), for the three months ended March 31, 2025, THOR’s current combined U.S. and Canadian market share based on units sold was approximately 38.2% for travel trailers and fifth wheels combined and approximately 45.9% for motorhomes. In Europe, according to the European Caravan Federation (“ECF”), our European market share for the three months ended March 31, 2025 was approximately 25.1% for motorcaravans and campervans combined and approximately 16.1% for caravans.

Previous wording

North American RV independent dealer inventory of our North American RV products as of January 31, 2025 decreased 1.8% to approximately 86,200 units, compared to approximately 87,800 units as of January 31, 2024. As of January 31, 2025, we believe North American dealer inventory levels for most products are generally in line with the levels that dealers are comfortable stocking heading into the spring selling season given the current retail sales levels and associated carrying costs. We believe dealers will continue to closely evaluate the unit stocking levels that they will elect to carry in future periods, which may be less than historical unit stocking levels, due to a combination of factors such as slower retail activity, higher RV wholesale prices as well as current interest rates and other carrying costs.

Current wording

North American RV independent dealer inventory of our North American RV products as of April 30, 2025 increased 4.4% to approximately 91,800 units, compared to approximately 87,900 units as of April 30, 2024. As of April 30, 2025, we believe North American dealer inventory levels for most products are generally in line with the levels that dealers are comfortable stocking heading into the spring selling season given the current retail sales levels and associated carrying costs. We believe dealers will continue to closely evaluate the unit stocking levels that they will elect to carry in future periods, which may be less than historical unit stocking levels, due to a combination of factors such as current retail activity, current RV wholesale prices as well as current interest rates and other carrying costs.

Previous wording

THOR’s North American RV backlog as of January 31, 2025 increased $289,604, or 15.2%, to $2,198,493 compared to $1,908,889 as of January 31, 2024, with the increase driven primarily by an increase in North American Towable backlog.

Current wording

THOR’s North American RV backlog as of April 30, 2025 decreased $149,074, or 8.9%, to $1,518,057 compared to $1,667,131 as of April 30, 2024, with the decrease driven primarily by a decrease in North American Towable backlog.

Previous wording

In March 2025, RVIA issued a revised forecast for calendar year 2025 wholesale unit shipments. Under the RVIA’s most likely scenario, towable and motorized unit shipments are projected to be approximately 313,300 units and 36,800 units, respectively, for an annual total of approximately 350,100 units, up 4.9% from the 2024 calendar year wholesale shipments. The RVIA’s most likely forecast for calendar year 2025 of 350,100 total units could range from a lower estimate of approximately 333,400 total units to an upper estimate of approximately 366,800 total units.

Current wording

In June 2025, RVIA issued a revised forecast for calendar year 2025 wholesale unit shipments. Under the RVIA’s most likely scenario, towable and motorized unit shipments are projected to be approximately 303,100 units and 33,800 units, respectively, for an annual total of approximately 337,000 units, up 1.0% from the 2024 calendar year wholesale shipments. The RVIA’s most likely forecast for calendar year 2025 of 337,000 total units could range from a lower estimate of approximately 320,400 total units to an upper estimate of approximately 353,500 total units.

Previous wording

The Company’s North American wholesale RV shipments, for the calendar years ended December 31, 2024 and 2023 to correspond to the North American industry wholesale periods noted above, were as follows:

Current wording

The Company’s North American wholesale RV shipments, for the calendar quarters ended March 31, 2025 and 2024 to correspond to the North American industry wholesale periods noted above, were as follows:

Previous wording

Retail statistics of the Company’s North American RV products, as reported by Stat Surveys, for the calendar years ended December 31, 2024 and 2023 to correspond to the North American industry retail periods noted above, were as follows:

Current wording

Retail statistics of the Company’s North American RV products, as reported by Stat Surveys, for the calendar quarters ended March 31, 2025 and 2024 to correspond to the North American industry retail periods noted above, were as follows:

Previous wording

Historically, RV industry sales have been impacted by a number of economic conditions faced by RV dealers, and ultimately retail consumers, such as the rate of unemployment, the rate of inflation, the level of consumer confidence, the disposable income of consumers, interest rates, credit availability, the health of the housing market, tax rates and fuel availability and prices. We believe these factors will continue to affect retail sales in fiscal 2025. In addition, due to inflationary pressures, higher current interest rates and other factors, we believe that RV dealers will be continuously reevaluating their desired stocking levels, which may result in lower than historical dealer inventory stocking levels on a unit basis. It is difficult to predict the extent to which any or all of these factors will impact the RV industry or our business in a particular future period, however, we currently believe the remainder of fiscal 2025 will continue to be negatively impacted by these factors.

Current wording

Historically, RV industry sales have been impacted by a number of economic conditions faced by RV dealers, and ultimately retail consumers, such as the level of consumer confidence, the rate of unemployment, the rate of inflation, the disposable income of consumers, interest rates, credit availability, the health of the housing market, tax rates and fuel availability and prices. We believe these factors will continue to affect retail sales in fiscal 2025. In addition, due to inflationary pressures, including the impact of higher tariffs, current interest rates and other factors, we believe that RV dealers will be continuously reevaluating their desired stocking levels, which may result in lower than historical dealer inventory stocking levels on a unit basis. It is difficult to predict the extent to which any or all of these factors will impact the RV industry or our business in a particular future period, however, we currently believe the remainder of fiscal 2025 will continue to be negatively impacted by these factors.

Previous wording

Economic and industry-wide factors that have historically affected, and which we believe will continue to affect, our operating results include the costs of commodities, the availability of critical supply components and labor costs incurred in the production of our products. Material and labor costs are the primary factors determining our cost of products sold, and any future increases in raw material or labor costs will impact our profit margins negatively if we are unable to offset those cost increases through a combination of product recontenting, material sourcing strategies, efficiency improvements or raising the selling prices for our products by corresponding amounts. We are closely monitoring the potential for the imposition of new or additional U.S tariffs on imports, as well as potential retaliatory tariffs or other measures certain other countries may impose on U.S. imports, that may increase our material costs or disrupt our supply of materials. We are currently uncertain as to the ultimate impact these measures may have given the rapidly changing environment surrounding tariffs and other related political topics. Historically, we have generally been able to offset net cost increases over time.

Current wording

Economic and industry-wide factors that have historically affected, and which we believe will continue to affect, our operating results include the costs of commodities, the availability of critical supply components and labor costs incurred in the production of our products. Material and labor costs are the primary factors determining our cost of products sold, and any future increases in raw material or labor costs will impact our profit margins negatively if we are unable to offset those cost increases through a combination of product recontenting, material sourcing strategies, efficiency improvements or raising the selling prices for our products by corresponding amounts. We are closely monitoring the imposition of new and higher U.S. tariffs on imports, as well as retaliatory tariffs or other measures certain other countries have already or may impose on U.S. imports, that may increase our material costs or disrupt our supply of materials. We are currently uncertain as to the ultimate impact these measures may have given the rapidly changing environment surrounding tariffs and other related political topics. The impact of increased or new tariffs in our fiscal third quarter was modest due to the timing of the announced tariffs and us working with our vendors regarding the extent and timing of any resultant cost increases. We would expect additional tariff impacts on our upcoming fourth quarter results, but it is difficult to assess the ultimate impact they may have given the ongoing changes in tariff rates, what components will be impacted and when, plus the fact that we are often not importing products or components directly but rather through third-party vendors and therefore do not have complete visibility regarding the timing or impact on the pricing of components we purchase. We intend to continue negotiations with our vendors regarding the timing and extent of any tariff pass-through costs, and where possible, will seek alternative supply sources with lower-priced components.

Previous wording

It is extremely difficult to predict when or whether future supply chain issues related to chassis or other components used in the production of RVs will arise. Modifying available chassis for certain motorized products to use for other products is not a viable alternative, particularly in the short term, due to engineering requirements. Uncertainties related to changing state and federal emission standards may also negatively impact the availability of chassis used in our production of certain North American motorized RVs and could also impact consumer buying patterns. The North American recreational vehicle industry has, from time to time in the past, experienced shortages of chassis for various reasons, including component shortages, production delays or other production issues and work stoppages at the chassis manufacturers.

Current wording

It is extremely difficult to predict when or whether future supply chain issues related to chassis or other components used in the production of RVs will arise, especially when considering the impact tariffs may have on the availability of goods. Modifying available chassis for certain motorized products to use for other products is not a viable alternative, particularly in the short term, due to engineering requirements. Uncertainties related to changing state and federal emission standards may also negatively impact the availability of chassis used in our production of certain North American motorized RVs and could also impact consumer buying patterns. The North American recreational vehicle industry has, from time to time in the past, experienced shortages of chassis for various reasons, including component shortages, production delays or other production issues and work stoppages at the chassis manufacturers.

Previous wording

While the North American RV industry has at times faced supply shortages or delivery delays of other, non-chassis raw material components, the supply chain is currently able to support our demand. If any of these factors were to impact our suppliers’ ability to fully supply our needs for key components, our costs of such components and our production output could be adversely affected.

Current wording

While the North American RV industry has at times faced supply shortages or delivery delays of other, non-chassis raw material components, the supply chain is currently able to support our demand, but that could change quickly given the current and potential future impact tariffs may have on supply. If any of these factors were to impact our suppliers’ ability to fully supply our needs for key components, our costs of such components and our production output could be adversely affected.

Previous wording

The Company monitors industry conditions in the European RV market using a number of resources including its own performance tracking and modeling. The Company also considers retail trends in the European RV market as reported by the European Caravan Federation (“ECF”) and its members. On a monthly basis, the Company receives OEM-specific reports for most of the individual member countries that make up the ECF through the Caravaning Industrie Verband e.V. (“CIVD”). The timing of these reports may vary, but typically they are issued on a one-to-two-month lag. While most countries provide OEM-specific information, the United Kingdom, which made up 18.8% and 10.3% of the caravan and motorcaravan (including campervans) European market for the calendar year ended December 31, 2024, respectively, does not provide OEM-specific information. Industry wholesale shipment data for the European RV market is not available.

Current wording

The Company monitors industry conditions in the European RV market using a number of resources including its own performance tracking and modeling. The Company also considers retail trends in the European RV market as reported by the European Caravan Federation (“ECF”) and its members. On a monthly basis, the Company receives OEM-specific reports for most of the individual member countries that make up the ECF through the Caravaning Industrie Verband e.V. (“CIVD”). The timing of these reports may vary, but typically they are issued on a one-to-two-month lag. While most countries provide OEM-specific information, the United Kingdom, which made up 17.7% and 10.4% of the caravan and motorcaravan (including campervans) European market for the three months ended March 31, 2025, respectively, does not provide OEM-specific information. Industry wholesale shipment data for the European RV market is not available.

Previous wording

Independent dealer inventory of our European RV products as of January 31, 2025 increased 3.6% to approximately 25,700 units as compared to approximately 24,800 units as of January 31, 2024. In both Germany, which accounts for approximately 60% of our European product sales, and in the other various countries we serve, independent RV dealer inventory levels of our motorized European products are generally in line with historic seasonal levels, while towable inventory is slightly elevated.

Current wording

Independent dealer inventory of our European RV products as of April 30, 2025 decreased 6.9% to approximately 23,000 units as compared to approximately 24,700 units as of April 30, 2024. In both Germany, which accounts for approximately 60% of our European product sales, and in the other various countries we serve, independent RV dealer inventory levels of our motorized European products are generally in line with historic seasonal levels, while towable inventory is slightly elevated.

Previous wording

THOR’s European RV backlog as of January 31, 2025 decreased $1,102,292, or 40.1%, to $1,644,015 compared to $2,746,307 as of January 31, 2024, primarily due to improved chassis supply availability as chassis constraints in the prior year resulted in significantly elevated backlogs as of January 31, 2024. The current backlog levels remain higher than historic seasonal levels.

Current wording

THOR’s European RV backlog as of April 30, 2025 decreased $591,511, or 30.6%, to $1,343,608 compared to $1,935,119 as of April 30, 2024, primarily due to improved chassis supply availability as chassis constraints in the prior year resulted in elevated backlogs as of April 30, 2024. The current backlog, measured in U.S. dollars, remains higher than historic seasonal levels.

Previous wording

The impact of current macroeconomic factors on our business, including inflation and interest rates, supply chain constraints, environmental and sustainability regulations and geopolitical events, is uncertain. Our outlook for future European RV retail sales depends upon the various economic and regulatory conditions in the respective countries in which we sell our products. End-customer demand for RVs depends strongly on consumer confidence. Factors such as the rate of unemployment, the rate of inflation, private consumption and investments, the level of disposable income of consumers, interest rates, the health of the housing market, tax rates and regulatory restrictions and, since the pandemic, travel safety considerations all influence retail sales. Our long-term outlook for future growth in European RV retail sales remains positive as more people discover RVs as a way to support their lifestyle in search of independence and individuality, as well as using the RV as a multi-purpose vehicle to escape urban life and explore outdoor activities and nature.

Current wording

The impact of current macroeconomic factors on our business, including inflation and interest rates, environmental and sustainability regulations and geopolitical events, is uncertain. Our outlook for future European RV retail sales depends upon the various economic and regulatory conditions in the respective countries in which we sell our products. End-customer demand for RVs depends strongly on consumer confidence. Factors such as the rate of unemployment, the rate of inflation, private consumption and investments, the level of disposable income of consumers, interest rates, the health of the housing market, tax rates and regulatory restrictions and, since the pandemic, travel safety considerations all influence retail sales. While confidence remains in our customer base, in the short term, we expect to continue to experience downward pressure on overall sales volume due to the current macroeconomic environment and a prolonged shift in consumer preferences. Our long-term outlook for future growth in European RV retail sales remains positive due to favorable demographic trends and as more people utilize RVs as a way to support their lifestyle in search of independence and individuality, as well as using the RV as a multi-purpose vehicle to escape urban life and explore outdoor activities and nature.

Previous wording

We and our independent European dealers market our European recreational vehicles through multiple avenues including at numerous RV fairs at the country and regional levels which occur throughout the calendar year. These fairs have historically been well-attended events that allow retail consumers the ability to see the newest products, features and designs and to talk with product experts in addition to being able to purchase or order an RV. The most recent CMT Show in Stuttgart in late January 2025, which experienced near-record attendance, demonstrates the continued high level of interest and consumer demand in the RV lifestyle. In addition to our attendance at various strategic trade fairs, we have and will continue to strengthen and expand our digital activities to reach high potential target groups, generate leads and steer customers directly to dealerships. With approximately 1,100 active independent dealers in Germany and throughout Europe with whom we do business, we believe our European brands have one of the strongest and most professionally structured dealer and service networks in Europe.

Current wording

We and our independent European dealers market our European recreational vehicles through multiple avenues including at numerous RV fairs at the country and regional levels which occur throughout the calendar year. These fairs have historically been well-attended events that allow retail consumers to see the newest products, features and designs and to talk with product experts in addition to being able to purchase or order an RV. The most recent major industry fair, the CMT Show in Stuttgart in late January 2025, experienced near-record attendance, which demonstrates the continued high level of interest and consumer demand in the RV lifestyle. In addition to our attendance at various strategic trade fairs, we have and will continue to strengthen and expand our digital activities to reach high potential target groups, generate leads and steer customers directly to dealerships. With approximately 1,100 active independent dealers in Germany and throughout Europe with whom we do business, we believe our European brands have one of the strongest and most professionally structured dealer and service networks in Europe.

Previous wording

Economic or industry-wide factors affecting our European RV operating results include the availability and costs of commodities and component parts and the labor used in the manufacture of our products. Material and labor costs are the primary factors determining our cost of products sold and any future increases in these costs will impact our profit margins negatively if we are unable to offset those cost increases through a combination of product recontenting, material sourcing strategies, efficiency improvements or raising the selling prices for our products by corresponding amounts.

Current wording

Economic or industry-wide factors affecting our European RV operating results include the availability and costs of commodities and component parts and the labor used in the manufacture of our products. Labor agreements and various governmental regulations are primary drivers in the cost of our labor force and impact how and when we can adjust our labor force to align with changing production needs. Adjusting our full-time workforce downwards in most of the locations where we operate in Europe generally results in negotiated separation costs. Material and labor costs are the primary factors determining our cost of products sold and any future increases in these costs could negatively impact our profit margins if we are unable to offset those costs through a combination of product recontenting, material sourcing strategies, efficiency improvements, headcount reductions or raising the selling prices for our products by corresponding amounts.

Previous wording

While overall chassis supply has improved, disruption in the sequence of chassis supply has in the past, and could in the future, inhibit our ability to efficiently and consistently maintain our planned production levels. Uncertainties related to changing emission standards may also negatively impact the availability of chassis used in our production of certain European motorized RVs and could also impact consumer buying patterns.

Current wording

While overall chassis supply has improved, disruption in the sequence of chassis supply has in the past inhibited, and could in the future, inhibit our ability to efficiently and consistently maintain our planned production levels. Uncertainties related to changing emission standards may also negatively impact the availability of chassis and/or other components used in our production of certain European motorized RVs and could also impact consumer buying patterns.

Previous wording

Where possible, to minimize the future impact of supply chain constraints, we have identified a second-source supplier base for certain component parts; however, the engineering requirements associated with an alternate component part, particularly the chassis on which our various units are built, limit the impact of these alternative suppliers on reducing any near-term supply constraints.

Current wording

When possible, to minimize the future impact of supply chain constraints, we have identified a second-source supplier base for certain component parts; however, engineering requirements associated with an alternate component part, particularly the chassis on which our various units are built, could limit the impact of these alternative suppliers on reducing any near-term supply constraints.

Previous wording

In addition to potential future material supply constraints, labor shortages have in the past, and could in the future, impact our European operations given the numerous locations where our manufacturing sites are located and the differing availability of skilled labor in those locations.

Current wording

In addition to potential future material supply constraints, labor shortages have in the past impacted, and could in the future, impact our European operations given the numerous locations where our manufacturing sites are located and the differing availability of skilled labor in those locations. As previously noted, high levels of labor costs and limitations on our ability to reduce those costs commensurate with market conditions have in the past, and could in the future, negatively impact our European operations.

Previous wording

Consolidated net sales for the three months ended January 31, 2025 decreased $189,262, or 8.6%, compared to the three months ended January 31, 2024. Approximately 30.3% of the Company’s consolidated net sales for the quarter ended January 31, 2025 were transacted in a currency other than the U.S. dollar. The Company’s most material exchange rate exposure is sales in Euros. The $189,262 decrease in consolidated net sales includes a decrease of $21,953 from the change in currency exchange rates between the two periods. To determine this impact, net sales transacted in currencies other than U.S. dollars have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative periods.

Current wording

Consolidated net sales for the three months ended April 30, 2025 increased $93,703, or 3.3%, compared to the three months ended April 30, 2024. Approximately 30.5% of the Company’s consolidated net sales for the quarter ended April 30, 2025 were transacted in a currency other than the U.S. dollar. The Company’s most material exchange rate exposure is sales in Euros. The $93,703 increase in consolidated net sales includes an increase of $2,663 from the change in currency exchange rates between the two periods. To determine this impact, net sales transacted in currencies other than U.S. dollars have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative periods.

Previous wording

Consolidated gross profit for the three months ended January 31, 2025 decreased $25,650, or 9.5%, compared to the three months ended January 31, 2024. Consolidated gross profit was 12.1% of consolidated net sales for the three months ended January 31, 2025 and 12.3% for the three months ended January 31, 2024. The decreases in consolidated gross profit and the consolidated gross profit percentage were both primarily due to the impact of the decrease in consolidated net sales in the current-year quarter compared to the prior-year quarter.

Current wording

Consolidated gross profit for the three months ended April 30, 2025 increased $21,267, or 5.0%, compared to the three months ended April 30, 2024. Consolidated gross profit was 15.3% of consolidated net sales for the three months ended April 30, 2025 and 15.1% for the three months ended April 30, 2024. The increases in consolidated gross profit and the consolidated gross profit percentage were both primarily due to the impact of the increase in consolidated net sales compared to the prior-year quarter.

Previous wording

The decrease in Other income, net of $16,246 for the three months ended January 31, 2025 as compared to the three months ended January 31, 2024 is primarily due to the unfavorable changes in Corporate other income and expenses as discussed below as well as larger gains on the dispositions of property, plant and equipment in the prior-year quarter.

Current wording

The increase in net expense included in Other income (expense), net of $9,616 for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 is primarily due to the unfavorable change in Corporate other income and expenses as discussed below relative to the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the two periods.

Previous wording

The decrease of $8,494, or 123.2%, in income (loss) before income taxes for the three months ended January 31, 2025 as compared to the three months ended January 31, 2024 was primarily driven by the decrease in consolidated net sales.

Current wording

The increase of $13,230, or 9.3%, in income before income taxes for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 was primarily driven by the increase in consolidated net sales and the improved gross profit percentage.

Previous wording

The overall effective income tax rate for the three months ended January 31, 2025 was (93.1)% compared with 22.7% for the three months ended January 31, 2024. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of non-deductible foreign exchange losses not subject to taxation, which had a greater percentage impact on the effective income tax rate during the three months ended January 31, 2025 as compared to the prior-year quarter.

Current wording

The overall effective income tax rate for the three months ended April 30, 2025 was 13.9% compared with 20.2% for the three months ended April 30, 2024. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of certain foreign exchange gains not subject to taxation during the three months ended April 30, 2025. In addition, income tax benefits were recorded from certain tax provision adjustments that primarily resulted from changes in estimates while completing the prior-year return during the three months ended April 30, 2025.

Previous wording

Additional information concerning the changes in net sales, gross profit, selling, general and administrative expenses and income (loss) before income taxes are addressed below and in the segment reporting that follows.

Current wording

Additional information concerning the changes in net sales, gross profit, selling, general and administrative expenses and income before income taxes are addressed below and in the segment reporting that follows.

Previous wording

Corporate costs included in consolidated selling, general and administrative expenses decreased $11,875 for the three months ended January 31, 2025 compared to the three months ended January 31, 2024. This decrease included a decrease in deferred compensation expense of $7,092 due to market value fluctuations between the two periods, which was primarily offset by the decrease in other income related to the deferred compensation plan assets noted below. Legal and professional fees also decreased $7,907, primarily due to the prior-year period including $7,175 in third-party fees related to the November 2023 debt refinancing. These decreases were partially offset by the prior-year quarter including $4,200 of income from adjustments made related to the matters discussed in Note 14 to the Condensed Consolidated Financial Statements.

Current wording

Corporate costs included in consolidated selling, general and administrative expenses decreased $6,207 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. This decrease included a decrease in deferred compensation expense of $9,663 due to market value fluctuations between the two periods, which was primarily offset by the decrease in other income related to the deferred compensation plan assets noted below. This decrease was partially offset by the prior-year quarter including $2,700 of income from adjustments made related to the matters discussed in Note 14 to the Condensed Consolidated Financial Statements.

Previous wording

Net expense in Corporate interest and other income and expense decreased $9,224 for the three months ended January 31, 2025 compared to the three months ended January 31, 2024. Net interest expense decreased $14,835 primarily due to lower average outstanding debt balances and lower interest rates, in addition to the prior-year interest expense including debt extinguishment charges of $7,566 related to the November 2023 debt refinancing. In addition, there was a favorable change of $1,800 in the non-cash foreign currency adjustments related to certain Euro-denominated loans compared to the prior-year period. These favorable changes were partially offset by a decrease of $8,371 in other income on the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the two periods.

Current wording

Net expense included in Corporate interest and other income and expense decreased $3,007 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, primarily due to a decrease of $9,389 in net interest expense due to lower average outstanding debt balances and lower interest rates, and the recorded operating results of our equity investments as discussed in Note 8 to the Condensed Consolidated Financial Statements improved by $3,047. These favorable changes were partially offset by a decrease of $9,378 in other income on the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the two periods.

Previous wording

The increase in total North American Towable net sales of 13.3% compared to the prior-year quarter resulted from a 27.6% increase in unit shipments and a 14.3% decrease in the overall net price per unit due to the combined impact of changes in product mix and price. The increase in unit shipments is primarily due to the higher demand for the lower-cost travel trailer units, which increased 31.1% over the prior-year quarter. According to statistics published by RVIA, for the three months ended January 31, 2025, combined North American travel trailer and fifth wheel wholesale unit shipments increased 11.2% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended December 31, 2024 and 2023, our North American market share for travel trailers and fifth wheels combined was 36.1% and 39.7%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.

Current wording

The increase in total North American Towable net sales of 9.1% compared to the prior-year quarter resulted from a 5.5% increase in unit shipments and a 3.6% increase in the overall net price per unit due to the combined impact of changes in product mix and price. The increase in unit shipments is primarily due to an increase in fifth wheel unit sales, which increased 35.2% over the prior-year quarter. According to statistics published by RVIA, for the three months ended April 30, 2025, combined North American travel trailer and fifth wheel wholesale unit shipments increased 10.7% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended March 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 38.2% and 40.1%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.

Previous wording

The decrease in the overall net price per unit within the travel trailer product line of 21.1% was primarily due to a change in product mix trending toward the more moderately-priced units as compared to the prior-year quarter. The increase in the overall net price within the fifth wheel product line of 6.1% was primarily due to product mix changes and lower sales discounting as compared to the prior-year quarter.

Current wording

The decrease in the overall net price per unit within the travel trailer product line of 5.6% was primarily due to current product mix trending toward the more moderately-priced units as compared to the prior-year quarter. The increase in the overall net price within the fifth wheel product line of 4.9% was primarily due to product mix changes and lower sales discounting as compared to the prior-year quarter.

Previous wording

North American Towable cost of products sold increased $59,549 to $736,620, or 88.9% of North American Towable net sales, for the three months ended January 31, 2025 compared to $677,071, or 92.6% of North American Towable net sales, for the three months ended January 31, 2024. Changes in material, labor, freight-out and warranty costs comprised $60,277 of the $59,549 increase in cost of products sold. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales decreased to 79.8% for the three months ended January 31, 2025 compared to 82.2% for the three months ended January 31, 2024, primarily due to a decrease in the material cost percentage from the combined net favorable impacts of lower sales discounting and cost-saving initiatives. The warranty cost percentage also improved.

Current wording

North American Towable cost of products sold increased $61,271 to $994,561, or 85.1% of North American Towable net sales, for the three months ended April 30, 2025 compared to $933,290, or 87.1% of North American Towable net sales, for the three months ended April 30, 2024. Changes in material, labor, freight-out and warranty costs comprised $60,161 of the $61,271 increase in cost of products sold. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales decreased to 78.2% for the three months ended April 30, 2025 compared to 79.6% for the three months ended April 30, 2024, primarily due to decreases in both the freight-out and warranty cost percentages.

Previous wording

Total manufacturing overhead decreased a slight $728 in correlation with the net sales increase, but decreased as a percentage of North American Towable net sales from 10.4% to 9.1% as the increased net sales levels resulted in lower overhead costs per unit sold.

Current wording

Total manufacturing overhead increased a slight $1,110 in correlation with the net sales increase, but decreased as a percentage of North American Towable net sales from 7.5% to 6.9% as the increased net sales levels resulted in lower overhead costs per unit sold.

Previous wording

The increase in North American Towable gross profit of $37,749 for the three months ended January 31, 2025 compared to the three months ended January 31, 2024 was driven by the increase in North American Towable net sales, and the increase in the gross profit percentage is due to the decrease in the cost of products sold percentage noted above.

Current wording

The increase in North American Towable gross profit of $36,214 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was driven by the increase in North American Towable net sales, and the increase in the gross profit percentage is due to the decrease in the cost of products sold percentage noted above.

Previous wording

The increase of $3,814 in North American Towable selling, general and administrative expenses for the six months ended January 31, 2025 compared to the six months ended January 31, 2024 was primarily due to the impact of the increase in North American Towable net sales and income before income taxes, which caused related commissions, incentive and other compensation to increase by $3,737.

Current wording

The increase in North American Towable selling, general and administrative expenses of $8,201 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to the increase in North American Towable net sales and income before income taxes causing related commissions, incentive and other compensation costs to increase by $6,010. Sales-related travel, advertising and promotional costs also increased by $1,079.

Previous wording

The increase in North American Towable income before income taxes of $27,491 for the three months ended January 31, 2025 compared to the three months ended January 31, 2024 was primarily due to the increase in North American Towable net sales, while North American Towable income before income taxes as a percentage of North American Towable net sales increased primarily due to the decrease in the cost of products sold percentage noted above.

Current wording

The increase in North American Towable income before income taxes of $29,178 for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to the increase in North American Towable net sales, while North American Towable income before income taxes as a percentage of North American Towable net sales increased primarily due to the decrease in the cost of products sold percentage noted above.

Previous wording

The decrease in total North American Motorized net sales of 21.8% compared to the prior-year quarter resulted from a 20.5% decrease in unit shipments and a 1.3% decrease in the overall net price per unit due to the impact of changes in product mix and price. The decrease in unit shipments is primarily due to a softening in current dealer and consumer demand in comparison with the demand in the prior-year quarter. According to statistics published by RVIA, for the three months ended January 31, 2025, combined North American motorhome wholesale unit shipments decreased 19.1% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended December 31, 2024 and 2023, our North American market share for motorhomes was 46.2% and 47.3%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.

Current wording

The increase in total North American Motorized net sales of 3.1% compared to the prior-year quarter resulted from a 10.9% increase in unit shipments and a 7.8% decrease in the overall net price per unit due to the impact of changes in product mix and price, primarily within the Class A product line. According to statistics published by RVIA, for the three months ended April 30, 2025, combined North American motorhome wholesale unit shipments decreased 7.3% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended March 31, 2025 and 2024, our North American market share for motorhomes was 45.9% and 47.8%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.

Previous wording

The decrease in the overall net price per unit within the Class A product line of 13.8% was primarily due to product mix changes, primarily a higher concentration of the more moderately-priced gas units as opposed to the higher-priced diesel units in the current-year quarter, in addition to higher discounting levels. The decrease in the overall net price per unit within the Class C product line of 0.9% was primarily due to higher discounting levels. The increase in the overall net price per unit within the Class B product line of 5.0% was primarily due to increases from product mix changes and selective net selling price increases being partially offset by higher discounting levels since the prior-year quarter.

Current wording

The decrease in the overall net price per unit within the Class A product line of 12.6% was mainly due to product mix changes, primarily a higher concentration in the current-year quarter of the more moderately-priced gas units as opposed to the higher-priced diesel units, in addition to higher discounting levels. The decrease in the overall net price per unit within the Class C product line of 4.3% was primarily due to higher discounting levels. The increase in the overall net price per unit within the Class B product line of 3.0% was primarily due to product mix changes and selective net selling price increases being partially offset by higher discounting levels compared to the prior-year quarter.

Previous wording

North American Motorized cost of products sold decreased $98,146 to $411,557, or 92.2% of North American Motorized net sales, for the three months ended January 31, 2025 compared to $509,703, or 89.4% of North American Motorized net sales, for the three months ended January 31, 2024. The changes in material, labor, freight-out and warranty costs comprised $91,286 of the $98,146 decrease primarily due to the decreased net sales volume. Material, labor, freight-out and warranty costs as a combined percentage of North American Motorized net sales increased to 84.6% for the three months ended January 31, 2025 compared to 82.3% for the three months ended January 31, 2024, with the increase mainly due to an increase in the material cost percentage, primarily due to increased sales discounting, partially offset by a decrease in the warranty cost percentage.

Current wording

North American Motorized cost of products sold increased $21,194 to $596,389, or 89.5% of North American Motorized net sales, for the three months ended April 30, 2025 compared to $575,195, or 88.9% of North American Motorized net sales, for the three months ended April 30, 2024. The changes in material, labor, freight-out and warranty costs comprised $23,930 of the overall $21,194 increase primarily due to the increased net sales volume. Material, labor, freight-out and warranty costs as a combined percentage of North American Motorized net sales increased to 84.3% for the three months ended April 30, 2025 compared to 83.1% for the three months ended April 30, 2024, with the increase mainly due to an increase in the material cost percentage, primarily due to increased sales discounting and product mix changes, partially offset by a decrease in the warranty cost percentage.