THOR INDUSTRIES INC

Previous wording

•legislative, regulatory and tax law and/or policy developments including their potential impact on our independent dealers, retail customers or on our suppliers;

Current wording

•legislative, trade, regulatory and tax law and/or policy developments including their potential impact on our independent dealers, retail customers or on our suppliers;

Previous wording

•the ability to protect our information technology systems from data breaches, cyber-attacks and/or network disruptions;

Current wording

•the ability to protect our information technology systems, including confidential and personal information, from data breaches, cyber-attacks and/or network disruptions;

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 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.

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 nine months ended September 30, 2025, THOR’s current combined U.S. and Canadian market share based on units sold was approximately 39.1% for travel trailers and fifth wheels combined and approximately 47.9% for motorhomes. In Europe, according to the European Caravan Federation (“ECF”), our European market share for the nine months ended September 30, 2025 based on units sold was approximately 26.3% for motorcaravans and campervans combined and approximately 17.2% for caravans.

Previous 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.

Current wording

As of October 31, 2025, we believe North American dealer inventory levels for most products are generally in line with the levels that dealers are comfortable stocking 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

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.

Current wording

In early December 2025, RVIA issued a revised forecast for calendar year 2025 North American wholesale unit shipments. Under RVIA’s most likely scenario, towable and motorized unit shipments are projected to be approximately 304,000 units and 35,700 units, respectively, for a 2025 calendar year total of approximately 339,700 units, up 1.8% from the 2024 calendar year wholesale shipments. According to RVIA, the most likely forecast for calendar year 2025 could range from a lower estimate of approximately 334,000 total units to an upper estimate of approximately 345,400 total units.

Previous wording

While we anticipate that near-term demand will be influenced by many factors, including consumer confidence and the level of consumer spending on discretionary products, we believe future retail demand over the longer term will exceed historical, pre-pandemic levels. We believe interest in the RV lifestyle remains high as consumers continue to value the perceived benefits offered by the RV lifestyle, which provides people with the ability to connect with loved ones and nature as well as the potential to get away for short, frequent breaks or longer adventures.

Current wording

We anticipate that near-term demand will be influenced by many factors, including consumer confidence and the level of consumer spending on discretionary products. We believe future retail demand over the longer term will grow from the current levels as consumer confidence and general economic conditions improve, as we believe interest in the RV lifestyle remains high as consumers continue to value the perceived benefits offered by the RV lifestyle, which provides people with the ability to connect with loved ones and nature as well as the potential to get away for short, frequent breaks or longer adventures.

Previous 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:

Current wording

The Company's North American wholesale RV shipments, for the nine-month periods ended September 30, 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 quarters ended March 31, 2025 and 2024 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 nine-month periods ended September 30, 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 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.

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 2026. In addition, due to inflationary pressures, including the impact of ongoing tariff changes, 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, particularly in the fall and winter months which historically are lower retail sales periods. 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 calendar 2025 and the early part of calendar 2026 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 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.

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 and effect of new or changing 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, disrupt our supply of materials or negatively impact our sales into other countries. 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 on our fiscal 2026 first quarter results was relatively modest due to the timing of, and changes in, both the announced tariff rates and effective dates and our engagement with our vendors regarding the extent and timing of any resultant cost increases. We would expect potential additional tariff impacts on our remaining fiscal 2026 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

Historically, we have generally been able to offset net cost increases over time, but given the size and nature of the tariffs currently in the process of being implemented and future tariffs being discussed, it may not be possible or desirable for us to pass on the full impact of tariff increases immediately as we are conscious of the impact it likely would have on the retail consumer and their demand for our products. Once a clearer and more certain picture of the tariff environment is established, we will be in a position to more fully assess the potential impact tariffs may have on our product selling prices and our operating results.

Current wording

Historically, we have generally been able to offset net cost increases over time, but given the size and nature of the tariffs implemented in calendar 2025 or currently in the process of being implemented and future tariffs being discussed, it may not be possible or desirable for us to pass on the full impact of tariff increases immediately as we are conscious of the impact it likely would have on the retail consumer and their demand for our products.

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, 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.

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 or supply chain constraints 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, 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.

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, and with little advance notice, given the current and potential future impact tariffs and other macroeconomic or political factors 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 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.

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 15.9% and 10.0% of the caravan and motorcaravan (including campervans) European market for the nine months ended September 30, 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 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.

Current wording

Independent dealer inventory of our European RV products as of October 31, 2025 decreased 9.8% to approximately 22,900 units as compared to approximately 25,400 units as of October 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 and campervan European products are generally in line with historic seasonal levels, while urban vehicle and towable inventory remains slightly elevated, but improving.

Previous wording

Note: Data from the ECF is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various countries.

Current wording

Note: Data from the ECF is subject to adjustments, is continuously updated and is often impacted by delays in reporting by various countries.

Previous 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.

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 experience stable market volume but ongoing pressure on overall sales prices due to the current economic environment. Our long-term outlook for future growth in European RV retail sales remains optimistic 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 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.

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 2025 Caravan Salon show in September 2025, experienced near-record attendance, which demonstrates the continued high level of interest 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. 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.

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, which may be material depending on the size of the workforce reduction. 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 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.

Current wording

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

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.

Current wording

Consolidated net sales for the three months ended October 31, 2025 increased $246,339, or 11.5%, compared to the three months ended October 31, 2024. Approximately 27.4% of the Company’s consolidated net sales for the quarter ended October 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 $246,339 increase in consolidated net sales includes an increase of $37,497 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 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.

Current wording

Consolidated gross profit for the three months ended October 31, 2025 increased $39,532, or 14.0%, compared to the three months ended October 31, 2024. Consolidated gross profit was 13.4% of consolidated net sales for the three months ended October 31, 2025 and 13.1% for the three months ended October 31, 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 in the current-year quarter compared to the prior-year quarter.

Previous wording

Selling, general and administrative expenses for the three months ended April 30, 2025 increased $11,758, or 5.2%, compared to the three months ended April 30, 2024, primarily due to the impact of the 3.3% increase in consolidated net sales and an increase in incentive compensation costs driven by the increase in income before income taxes.

Current wording

Selling, general and administrative expenses for the three months ended October 31, 2025 increased $13,833, or 5.8%, compared to the three months ended October 31, 2024, primarily due to an increase in sales-related travel, advertising and promotional costs in correlation with the 11.5% increase in consolidated net sales and an increase in incentive compensation due to the increase in consolidated income before income taxes.

Previous 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.

Current wording

The increase of $33,644 in income before income taxes for the three months ended October 31, 2025 as compared to the loss before income taxes for the three months ended October 31, 2024 was primarily driven by the increase in consolidated net sales.

Previous wording

Corporate costs included in consolidated selling, general and administrative expenses increased $10,097 for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024. The increase included an increase in compensation costs of $15,071, primarily due to employee separation costs related to certain headcount reductions in the current-year period, and the prior-year period included income of $16,900 related to the matters discussed in Note 14 to the Condensed Consolidated Financial Statements. These increases were partially offset by a decrease in deferred compensation expense of $5,631 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. In addition, there was a decrease of $9,178 in legal and professional fees, primarily due to the prior-year period including $7,175 of third-party fees related to the November 2023 debt refinancing, a decrease in certain dealer promotional costs of $4,350 and a decrease of $3,675 in costs related to our standby repurchase obligations reserve due to reductions in both dealer inventory levels and repurchase activity compared to the prior-year period.

Current wording

Corporate costs included in consolidated selling, general and administrative expenses decreased $6,021 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. This decrease includes a decrease in compensation costs of $15,271, primarily due to employee separation costs related to certain headcount reductions in the prior-year quarter, and a decrease in research and development costs of $3,037. These decreases were partially offset by an increase in deferred compensation expense of $3,971 due to market value fluctuations between the two periods, which was effectively offset by the increase in other income related to the deferred compensation plan assets noted below, and an increase in certain dealer promotional costs of $4,044. In addition, incentive compensation increased $1,560 due to the increase in income before income taxes compared to the prior-year quarter, and costs related to our standby repurchase obligations also increased $1,750, primarily due to a favorable adjustment in the prior-year quarter due to a decrease in dealer inventory levels during that period.

Previous 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.

Current wording

Net expense from Corporate interest and other income and expenses decreased $13,788 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. Net interest expense decreased $5,422 primarily due to lower debt interest expense as a result of lower average outstanding debt balances and lower interest rates. This decrease in net expense also included a favorable change of $4,968 in the fair value of the Company’s deferred compensation plan assets and the recorded operating results of our equity investments as discussed in Note 8 to the Condensed Consolidated Financial Statements improved by $1,829 in the current quarter compared to the prior-year quarter.

Previous wording

The increase in total North American Towable net sales of 5.4% compared to the prior-year period resulted from a 11.7% increase in unit shipments and a 6.3% 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 was primarily due to the heightened demand for the lower-cost travel trailer units as compared to the prior-year period. According to statistics published by RVIA, for the nine months ended April 30, 2025, combined North American travel trailer and fifth wheel wholesale unit shipments increased 10.4% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the nine-month periods ended March 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 37.8% and 40.4%, respectively. Comparisons of Company shipments to industry shipments on an interim basis would not necessarily be indicative of the results expected for a full fiscal year.

Current wording

The decrease in total North American Towable net sales of 0.2% compared to the prior-year quarter resulted from a 14.0% decrease in unit shipments mostly offset by a 13.8% increase in the overall net price per unit due to the combined impact of changes in product mix and price. The decrease in unit shipments is primarily due to lower demand for the lower-cost travel trailers units relative to the prior-year quarter, as travel trailer unit shipments decreased 21.8% over the prior-year quarter. According to statistics published by RVIA, for the three months ended October 31, 2025, combined North American travel trailer and fifth wheel wholesale unit shipments decreased 2.2% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended September 30, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 39.1% and 38.6%, 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 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.

Current wording

The increases in the overall net price per unit within the travel trailer product line of 5.8% and within the fifth wheel product line of 2.7% were primarily due to product mix changes as compared to the prior-year quarter. The increase in the overall net price in the North American Towable segment of 13.8% was primarily due to the greater percentage of sales of the higher-priced fifth wheel products as compared to travel trailers in the current-year quarter.

Previous 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.

Current wording

North American Towable cost of products sold decreased $8,246 to $778,095, or 86.7% of North American Towable net sales, for the three months ended October 31, 2025 compared to $786,341, or 87.5% of North American Towable net sales, for the three months ended October 31, 2024. The changes in material, labor, freight-out and warranty costs comprised $3,695 of the $8,246 decrease in cost of products sold. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales decreased slightly to 78.9% for the three months ended October 31, 2025 compared to 79.2% for the three months ended October 31, 2024, as an increase in the material cost percentage was offset by a similar decrease in the warranty cost percentage, and the freight-out percentage decreased slightly.

Previous 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.

Current wording

The increases in North American Towable gross profit of $6,558 and the gross profit percentage for the three months ended October 31, 2025 compared to the three months ended October 31, 2024 were both driven by the decrease in the costs of products sold noted above.

Previous 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.

Current wording

North American Towable selling, general and administrative expenses increased $55, or 0.1%, for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. The change includes an increase of $2,511 in sales-related travel, advertising and promotion costs and a decrease in employee compensation costs of $2,220 due to cost savings from the recent towable organizational restructuring initiatives noted above. The overall selling, general and administrative expense as a percentage of North American Towable net sales did not change compared to the prior year.

Previous 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.

Current wording

The decrease in North American Towable income before income taxes of $350 for the three months ended October 31, 2025 as compared to the three months ended October 31, 2024 is primarily due to the increase in North American Towable gross profit noted above being mostly offset by impairment charges of $7,822 taken on certain assets held for sale based on the current estimated sales proceeds of these assets. North American Towable income before income taxes as a percentage of North American Towable net sales remained unchanged.

Previous 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.

Current wording

The increase in total North American Motorized net sales of 30.9% compared to the prior-year quarter resulted from a 32.3% increase in unit shipments and a 1.4% decrease in the overall net price per unit due to the impact of changes in product mix and price. The increase in unit shipments is primarily due to an increase 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 October 31, 2025, combined North American motorhome wholesale unit shipments increased 14.6% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended September 30, 2025 and 2024, our North American market share for motorhomes was 47.3% 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 6.4%, was primarily due to product mix changes, primarily a higher concentration in the current-year period of the more moderately-priced gas units as opposed to the higher-priced diesel units, in addition to higher discounting levels. The slight decrease in the overall net price per unit within the Class C product line of 0.7% was primarily due to higher discounting levels, and the Class B product line increase of 3.6% 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 period.

Current wording

The increase in the overall net price per unit within the Class A product line of 4.1% is primarily due to a higher concentration of sales of the generally higher-priced product lines in the current-year period. The modest decreases in the Class C product line of 0.5% and the Class B product line of 1.2% were both primarily due to product mix changes towards more moderately-priced units compared to the prior-year quarter.

Previous 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.

Current wording

North American Motorized cost of products sold increased $126,993 to $589,474, or 89.2% of North American Motorized net sales, for the three months ended October 31, 2025 compared to $462,481, or 91.5% of North American Motorized net sales, for the three months ended October 31, 2024. The changes in material, labor, freight-out and warranty costs comprised $123,261 of the $126,993 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 decreased to 83.5% for the three months ended October 31, 2025 compared to 84.8% for the three months ended October 31, 2024, with the decrease primarily due to decreases in both the direct labor and warranty cost percentages.

Previous 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.

Current wording

Total manufacturing overhead increased $3,732 in correlation with the net sales increase, but decreased as a percentage of North American Motorized net sales from 6.7% to 5.7% as the increase in net sales levels resulted in lower overhead costs per unit sold.

Previous wording

The decrease of $64,101 in North American Motorized gross profit for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was driven by the decrease in North American Motorized net sales, and the decrease in the gross profit percentage is due to the increase in the cost of products sold percentage noted above.

Current wording

The increase in North American Motorized gross profit of $28,895 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024 was driven by the increase in North American Motorized 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 decrease of $12,024 in North American Motorized selling, general and administrative expenses for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the decreases in North American Motorized net sales and income before income taxes, which caused related commissions, incentive and other compensation to decrease by $11,008. The increase in the overall selling, general and administrative expense as a percentage of North American Motorized net sales was primarily due to the decrease in North American Motorized net sales.

Current wording

The increase in North American Motorized selling, general and administrative expenses of $5,211 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024 was primarily due to the increases in North American Motorized net sales and income before income taxes, which caused related commissions, incentive and other compensation to increase by $3,272. The decrease in the overall selling, general and administrative expense as a percentage of North American Motorized net sales is primarily due to the increase in North American Motorized net sales.

Previous wording

The increase of $54,241 in North American Towable income before income taxes for the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024 was primarily due to the increase in North American Towable net sales, and the primary reason for the increase in percentage was the decrease in the cost of products sold percentage noted above.

Current wording

The increase in North American Motorized income before income taxes of $24,068 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024 was primarily due to the increase in North American Motorized net sales, and the primary reasons for the increase in percentage were the decreases in both the cost of products sold and selling, general and administrative expense percentages noted above.

Previous wording

The decrease in total European Recreational Vehicle net sales of 5.1% compared to the prior-year quarter resulted from a 12.2% decrease in unit shipments offset in part by a 7.1% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price. The decrease in European Recreational Vehicle net sales of $47,519 includes an increase of $2,663, or 0.3% netted in the 5.1% decrease, due to the increase in foreign exchange rates compared to the prior-year quarter. According to the most recently published statistics from the European Caravan Federation, our combined European market share for the three months ended March 31, 2025 and 2024 was approximately 23.0% and 23.9%, respectively.

Current wording

The increase in total European Recreational Vehicle net sales of 8.4% compared to the prior-year quarter resulted from a 1.0% increase in unit shipments and a 7.4% increase in the overall net price per unit due to the total impact of changes in foreign currency, product mix and price. The increase in total European Recreational Vehicle net sales of $50,576 includes an increase of $37,497, or 6.2% of the 8.4% increase, due to the increase in foreign exchange rates compared to the prior-year period. According to the most recently published statistics from the European Caravan Federation, our combined European market share for the three months ended September 30, 2025 and 2024 was approximately 24.4% and 22.8%, respectively.