THOR INDUSTRIES INC

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 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.

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 calendar year ended December 31, 2025, THOR’s current combined U.S. and Canadian market share based on units sold was approximately 38.6% for travel trailers and fifth wheels combined and approximately 47.5% for motorhomes. In Europe, according to the European Caravan Federation (“ECF”), our European market share for the calendar year ended December 31, 2025 was approximately 25.5% for motorcaravans and campervans combined and approximately 16.8% for caravans.

Previous wording

North American RV independent dealer inventory of our North American RV products as of October 31, 2025 decreased 5.5% to approximately 70,900 units, compared to approximately 75,000 units as of October 31, 2024.

Current wording

North American RV independent dealer inventory of our North American RV products as of January 31, 2026 decreased 8.2% to approximately 79,100 units, compared to approximately 86,200 units as of January 31, 2025.

Previous wording

THOR’s North American RV backlog as of October 31, 2025 increased $36,333, or 1.9%, to $1,932,525 compared to $1,896,192 as of October 31, 2024. The increase in backlog is primarily a result of an increase in year-over-year orders for motorized products, due in part to our multiple price-conscious product offerings as well as new product introductions since the prior year. The increase in the North American Motorized backlog was partially offset by a decrease in North American Towable backlog.

Current wording

THOR’s North American RV backlog as of January 31, 2026 decreased $534,805, or 24.3%, to $1,663,688 compared to $2,198,493 as of January 31, 2025. The decrease in backlog is primarily a result of a decrease in year-over-year orders for North American Towable products, as North American Motorized backlog was similar to the prior year.

Previous 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.

Current wording

In December 2025, RVIA issued a revised forecast for calendar year 2026 North American wholesale unit shipments. Under RVIA’s most likely scenario, towable and motorized unit shipments are projected to be approximately 311,900 units and 37,100 units, respectively, for an annual total of approximately 349,000 units, up 2.0% from the 2025 calendar year wholesale shipments. The RVIA’s most likely forecast for calendar year 2026 of 349,000 total units could range from a lower estimate of approximately 332,100 total units to an upper estimate of approximately 366,000 total units.

Previous 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.

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 both short, frequent breaks or longer adventures.

Previous 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:

Current wording

The Company’s North American wholesale RV shipments, for the calendar years ended December 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 nine-month periods ended September 30, 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 calendar years ended December 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 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.

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 the impact of inflationary pressures, including the impact from 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, 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 our fiscal 2026 will continue to be negatively impacted by these factors.

Previous wording

Despite the continuing near-term challenges, we remain optimistic about the future of North American retail sales in the long term, as there are many factors driving product interest. Surveys conducted by THOR, RVIA and others show that Americans of all generations love the freedom of the outdoors and the enrichment that comes with living an active lifestyle. RVs allow people to be in control of their travel experiences, going where they want, when they want and with the people they want. The RV units we design, produce and sell allow people to spend time outdoors pursuing their favorite activities, creating cherished moments and deeply connecting with family and friends. Based on the ongoing value consumers place on these factors, we expect to see long-term growth in the North American RV industry. The growth in industry-wide RV sales during late calendar year 2020 through early calendar year 2023 resulted in exposing a wider range of consumers to the RV lifestyle. As a result, we believe many of those who have been exposed to the industry for the first time will become future owners once general economic conditions improve, and that those who became first-time owners since the onset of the pandemic will become long-term RVers, resulting in future repeat and upgrade sales opportunities. We also believe many consumers are likely to continue opting for fewer vacations via air travel, cruise ships and hotels, while preferring vacations that RVs are uniquely positioned to provide, allowing consumers the ability to explore or unwind, often close to home. In addition, we believe that the availability of camping and RV parking facilities will be an important factor in the future growth of the industry and view both the significant recent investments and the committed future investments by campground owners, states and the federal government in camping facilities and accessibility to state and federal parks and forests to be positive long-term factors.

Current wording

Despite the continuing near-term challenges, we remain optimistic about the future of North American retail sales in the long term, as there are many factors driving product interest. Surveys conducted by THOR, RVIA and others show that Americans of all generations love the freedom of the outdoors and the enrichment that comes with living an active lifestyle. RVs allow people to be in control of their travel experiences, going where they want, when they want and with the people they want. The RV units we design, produce and sell allow people to spend time outdoors pursuing their favorite activities, creating cherished moments and deeply connecting with family and friends. Based on the ongoing value consumers place on these factors, we expect to see long-term growth in the North American RV industry. The growth in industry-wide RV sales during late calendar year 2020 through early calendar year 2023 resulted in exposing a wider range of consumers to the RV lifestyle. As a result, we believe many of those who were exposed to the industry for the first time will become future owners once general economic conditions improve, and that those who became first-time owners since the onset of the pandemic will become long-term RVers, resulting in future repeat and upgrade sales opportunities. We also believe many consumers prefer vacations that RVs are uniquely positioned to provide, allowing consumers the ability to explore or unwind, often close to home. In addition, we believe that the availability of camping and RV parking facilities will be an important factor in the future growth of the industry and view both the significant recent investments and the committed future investments by campground owners, states and the federal government in camping facilities and accessibility to state and federal parks and forests to be positive long-term 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 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.

Current wording

We are closely monitoring the imposition and effect of U.S. tariffs on imports, including the impact of the recently announced opinion by the U.S. Supreme Court addressing the legality of certain tariffs introduced in the last year, the potential for refunds of tariffs imposed under the International Emergency Economic Powers Act as a consequence of the Supreme Court decision, and the current administration’s announcement of its intention to impose new tariffs. We are also monitoring potential retaliatory tariffs or other measures certain other countries have already or may impose on U.S. imports into those countries, that may increase our material costs, disrupt our supply of materials or negatively impact our sales into other countries. The impact of increased or new tariffs on our fiscal 2026 first and second quarter results was relatively modest due to the timing of, and changes in, both the announced tariff rates and their effective dates and our engagement with our vendors regarding the extent and timing of any resultant cost increases. While we anticipate that tariffs will continue to affect our business and financial results, there is significant uncertainty as to the ultimate impact tariffs and tariff-related matters may have on our business and our remaining fiscal 2026 results given the rapidly changing environment surrounding tariffs in general, in addition to other related political topics. As an additional consideration, we are often not importing products or components directly, but rather through third-party vendors, meaning we do not have complete visibility regarding the timing or impact of tariffs on the pricing of those components. 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. We also intend to seek refunds for tariffs previously paid, however, the amount of any such refunds at this time has not been quantified, and the timing of the receipt of any such refunds is highly uncertain.

Previous 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.

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 since early calendar 2025 and any future tariffs, it makes it more difficult and likely less 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 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.

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 of tariffs, regulatory changes or supply chain constraints on the availability of chassis or other components. Modifying available chassis for certain motorized products to use for other products is generally 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

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.

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 17.2% and 10.3% of the caravan and motorcaravan (including campervans) European market for the calendar year ended December 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 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.

Current wording

Independent dealer inventory of our European RV products as of January 31, 2026 decreased 9.3% to approximately 23,300 units as compared to approximately 25,700 units as of January 31, 2025. 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 historical seasonal levels, while urban vehicle and caravan inventory remains slightly elevated, but improving.

Previous wording

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

Current wording

Note: Data from the ECF is subject to adjustment, 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 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.

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. In the short term we expect to experience relatively 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 due to more people utilizing 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 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.

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 2026 CMT Show in Stuttgart in late January 2026, 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 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, 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.

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. Raw 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

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.

Current wording

Consolidated net sales for the three months ended January 31, 2026 increased $107,749, or 5.3%, compared to the three months ended January 31, 2025. Approximately 32.2% of the Company’s consolidated net sales for the quarter ended January 31, 2026 were transacted in a currency other than the U.S. dollar. The Company’s most material exchange rate exposure is sales in Euros. The $107,749 increase in consolidated net sales includes an increase of $69,424 from the change in foreign 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

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.

Current wording

The increase of $22,592 in income before income taxes for the three months ended January 31, 2026 as compared to the three months ended January 31, 2025 was primarily driven by the increase in Other income, net noted above.

Previous wording

The overall effective income tax rate for the three months ended October 31, 2025 was 28.7% compared with 24.5% for the three months ended October 31, 2024. The primary reason for the increase relates to certain losses in foreign jurisdictions without an associated tax benefit and changes in statutory tax rates in certain foreign jurisdictions during the three months ended October 31, 2025.

Current wording

The overall effective income tax rate for the three months ended January 31, 2026 was 30.3% compared with (93.1)% for the three months ended January 31, 2025. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of the non-deductible foreign exchange losses not subject to taxation in the three months ending January 31, 2025, which had a greater percentage impact on the effective income tax rate. The rate for the three months ending January 31, 2026 was negatively impacted by certain losses in foreign jurisdictions without an associated tax benefit and changes in statutory tax rates in certain foreign jurisdictions. This negative impact was partially offset by foreign exchange gains not subject to taxation in the three months ending January 31, 2026.

Previous 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.

Current wording

The decrease in total North American Towable net sales of 14.2% compared to the prior-year quarter resulted from a 23.0% decrease in unit shipments partially offset by an 8.8% 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 trailer units relative to the prior-year quarter, as travel trailer unit shipments decreased 28.2% from the prior-year quarter. According to statistics published by RVIA, for the three months ended January 31, 2026, combined North American travel trailer and fifth wheel wholesale unit shipments decreased 8.4% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended December 31, 2025 and 2024, our North American market share for travel trailers and fifth wheels combined was 36.2% and 36.1%, 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 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.

Current wording

The increase in the overall net price per unit within the travel trailer product line of 6.0% and the decrease within the fifth wheel product line of 2.9% 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 8.8% was primarily due to the greater percentage of sales of the higher-priced fifth wheel units as compared to travel trailer units in the current-year quarter.

Previous 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.

Current wording

North American Towable cost of products sold decreased $101,633 to $634,987, or 89.4% of North American Towable net sales, for the three months ended January 31, 2026 compared to $736,620, or 88.9% of North American Towable net sales, for the three months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $96,121 of the $101,633 decrease in cost of products sold and decreased primarily due to the decrease in North American Towable net sales. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales decreased slightly to 79.6% for the three months ended January 31, 2026 compared to 79.8% for the three months ended January 31, 2025, primarily due to a decrease in the warranty cost percentage being mostly offset by an increase in the material cost percentage.

Previous 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.

Current wording

The increase in North American Towable income before income taxes of $3,043 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 included the decrease in North American Towable gross profit noted above being more than offset by the reduction in selling, general and administrative expenses noted above and an increase in other income of $9,355, primarily from increased gains on the sales of assets relative to the Towable segment. North American Towable income before income taxes as a percentage of North American Towable net sales increased primarily due to the increase in other income as a percentage of net sales.

Previous 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.

Current wording

The increase in total North American Motorized net sales of 29.3% compared to the prior-year quarter resulted from a 28.3% increase in unit shipments and a 1.0% increase 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 January 31, 2026, combined North American motorhome wholesale unit shipments increased 5.7% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended December 31, 2025 and 2024, our North American market share for motorhomes was 45.9% and 46.1%, 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

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.

Current wording

Total manufacturing overhead increased $4,930 in correlation with the net sales increase but decreased as a percentage of North American Motorized net sales from 7.6% to 6.7% as the increase in net sales levels resulted in lower overhead costs per unit sold.

Previous 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.

Current wording

The increase in North American Motorized gross profit of $19,899 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 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 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.

Current wording

The increase in North American Motorized selling, general and administrative expenses of $4,136 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 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 $3,616. The decrease in the overall selling, general and administrative expense as a percentage of North American Motorized net sales is due to the increase in North American Motorized net sales.

Previous 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.

Current wording

The increase in North American Motorized income before income taxes of $16,606 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 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 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.

Current wording

The increase in total European Recreational Vehicle net sales of 11.8% compared to the prior-year quarter resulted from a 0.2% increase in unit shipments and an 11.6% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and selling prices. The increase in European Recreational Vehicle net sales of $72,007 includes an increase of $69,424, or 11.4% of the 11.8% increase, due to the increase in foreign currency 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 December 31, 2025 and 2024 was approximately 20.3% and 22.0%, 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 overall net price per unit increase of 7.4% includes a 6.2% increase due to the impact of foreign currency exchange rate changes and a 1.2% constant-currency increase due to the combined impact of product mix and price, primarily due to the higher concentration of Motorcaravan sales in the current-year quarter.

Current wording

The overall net price per unit increase of 11.6% includes an 11.4% increase due to the impact of foreign currency exchange rate changes and a 0.2% constant-currency increase due to the combined impact of product mix and price, primarily due to the slightly higher concentration of Motorcaravan sales in the current-year quarter.

Previous wording

European Recreational Vehicle cost of products sold increased $65,410 to $577,665, or 88.1% of European Recreational Vehicle net sales, for the three months ended October 31, 2025 compared to $512,255, or 84.7% of European Recreational Vehicle net sales, for the three months ended October 31, 2024. The changes in material, labor, freight-out and warranty costs comprised $59,082 of the $65,410 increase primarily due to the increased net sales volume and the increased material costs noted below. Material, labor, freight-out and warranty costs as a combined percentage of European Recreational Vehicle net sales increased to 74.9% for the three months ended October 31, 2025 compared to 71.4% for the three months ended October 31, 2024, primarily due to an increase in the material cost percentage as a result of the combined unfavorable impacts of increased sales discounting, increased chassis costs and a higher concentration of sales of entry-level and special-edition motorcaravan products, both of which have generally higher material cost percentages. The warranty cost percentage also increased.

Current wording

European Recreational Vehicle cost of products sold increased $77,807 to $609,343, or 89.0% of European Recreational Vehicle net sales, for the three months ended January 31, 2026 compared to $531,536, or 86.8% of European Recreational Vehicle net sales, for the three months ended January 31, 2025. The changes in material, labor, freight-out and warranty costs comprised $70,247 of the $77,807 increase primarily due to the increased net sales and the increased material costs noted below. Material, labor, freight-out and warranty costs as a combined percentage of European Recreational Vehicle net sales increased to 76.1% for the three months ended January 31, 2026 compared to 73.6% for the three months ended January 31, 2025, primarily due to an increase in the material cost percentage as a result of the combined unfavorable impacts of increased chassis costs and a higher concentration of sales of entry-level and special-edition motorcaravan products, both of which generally have higher material cost percentages. The warranty cost percentage also increased.

Previous wording

Total manufacturing overhead increased by $6,328 with the increase in sales but decreased slightly as a percentage of European Recreational Vehicles net sales from 13.3% to 13.2% as the increase in net sales levels resulted in lower overhead costs per unit sold.

Current wording

Total manufacturing overhead increased $7,560 with the increase in sales but decreased slightly as a percentage of European Recreational Vehicle net sales from 13.2% to 12.9% as the increase in net sales levels resulted in lower overhead costs per unit sold.

Previous wording

The decrease in European Recreational Vehicle gross profit of $14,834 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024 and the decrease in the gross profit percentage were both due to the increase in the cost of products sold noted above.

Current wording

The decrease in European Recreational Vehicle gross profit of $5,800 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 and the decrease in the gross profit percentage were both due to the increase in the cost of products sold noted above.

Previous wording

European Recreational Vehicle selling, general and administrative expenses increased $12,254 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024, primarily due to $6,702 in employee separation costs accrued related to strategic fiscal year 2026 plant reorganization initiatives. In addition, sales wages and benefits increased $1,279 in correlation with the increase in European Recreational Vehicle net sales. The increase in the overall selling, general and administrative expense as a percentage of European Recreational Vehicle net sales is also primarily due to the employee separation costs.

Current wording

European Recreational Vehicle selling, general and administrative expenses increased $11,251 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025, primarily due to a total of $4,818 in employee separation costs related to strategic fiscal year 2026 plant reorganization initiatives. In addition, sales wages and benefits increased $1,937 in correlation with the increase in European Recreational Vehicle net sales and professional fees and related RV repurchase costs also increased $1,922. The increase in the overall selling, general and administrative expense as a percentage of European Recreational Vehicle net sales is primarily due to the increased costs noted above.

Previous wording

The decrease in the European Recreational Vehicle income (loss) before income taxes of $27,815 for the three months ended October 31, 2025 compared to the three months ended October 31, 2024 was primarily due to the increases in cost of products sold and selling, general and administrative expenses as noted above, and the primary reason for the decrease in the percentage was the increase in both of those cost percentages as noted above.

Current wording

The decrease in European Recreational Vehicle income (loss) before income taxes of $14,518 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was primarily due to the impact of the increases in cost of products sold and selling, general and administrative expenses as noted above, and the primary reason for the decrease in percentage was the increase in both of those cost percentages as noted above.

Previous 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.

Current wording

Consolidated gross profit for the six months ended January 31, 2026 increased $45,589 compared to the six months ended January 31, 2025. Consolidated gross profit was 12.7% of consolidated net sales for both the six months ended January 31, 2026 and the six months ended January 31, 2025. The increase in consolidated gross profit was primarily due to the impact of the increase in consolidated net sales in the current-year period compared to the prior-year period while the gross profit percentage remained unchanged.

Previous 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.

Current wording

Corporate costs included in consolidated selling, general and administrative expenses decreased $9,083 for the six months ended January 31, 2026 compared to the six months ended January 31, 2025. The decrease included a decrease in compensation costs of $15,860, primarily due to employee separation costs related to certain headcount reductions in the prior-year period, and a decrease in research and development costs of $4,941. These decreases were partially offset by an increase in deferred compensation expense of $3,152 due to market value fluctuations between the two periods, which was primarily offset by the increase in other income related to the deferred compensation plan assets noted below. In addition, there were increases of $3,923 in certain dealer promotional costs and $1,750 in costs related to our standby repurchase obligations reserve due primarily to a favorable adjustment in the prior-year period. Incentive compensation also increased $1,850 due to the increase in income before income taxes compared to the prior-year period.

Previous 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.

Current wording

Net expense from Corporate interest and other income and expense decreased $21,022 for the six months ended January 31, 2026 compared to the six months ended January 31, 2025. Net interest expense decreased by $7,434 primarily due to lower overall average outstanding debt balances and lower overall interest rates and the recorded operating results of our equity investments, as discussed in Note 8 to the Condensed Consolidated Financial Statements, improved by $3,440 in the current-year period as compared to the prior-year period. In addition, there was a favorable change of $3,356 in the fair value of the Company’s deferred compensation assets and a favorable change of $5,447 related to non-cash foreign currency gains on certain Euro-denominated loans between the two periods.