THOR INDUSTRIES INC

Previous wording

This report includes certain statements that are “forward-looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made based on management’s current expectations and beliefs regarding future and anticipated developments and their effects upon THOR, and inherently involve uncertainties and risks. These forward-looking statements are not a guarantee of future performance. We cannot assure you that actual results will not differ materially from our expectations. Factors which could cause materially different results include, among others:

Current wording

This report includes certain statements that are “forward-looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made based on management’s current expectations and beliefs regarding future and anticipated developments and their effects upon THOR and inherently involve uncertainties and risks. These forward-looking statements are not a guarantee of future performance and actual results may differ materially from our expectations. Factors which could cause materially different results include, among others:

Previous wording

•the ability to realize anticipated benefits of strategic realignments or other reorganizational actions;

Current wording

•the ability to realize anticipated benefits of strategic initiatives including realignments or other reorganizational actions;

Previous wording

•a shortage of necessary personnel for production and increasing labor costs and related employee benefits to attract and retain production personnel in times of high demand;

Current wording

•a shortage of necessary personnel for production and increasing labor costs and related employee benefits costs to attract and retain production personnel in times of high demand;

Previous wording

We were founded in 1980 and have grown to become the largest manufacturer of recreational vehicles (“RVs”) in the world based on units sold and revenue. We are also the largest manufacturer of RVs in North America, and one of the largest manufacturers of RVs in Europe. In North America, according to Statistical Surveys, Inc. (“Stat Surveys”), for the calendar year ended December 31, 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.

Current wording

We were founded in 1980 and have grown to become the largest manufacturer of recreational vehicles (“RVs”) in the world based on units sold and revenue. We are also the largest manufacturer of RVs in North America, and one of the largest manufacturers of RVs in Europe. In North America, according to Statistical Surveys, Inc. (“Stat Surveys”), for the three months ended March 31, 2026, THOR’s current combined U.S. and Canadian market share based on units sold was approximately 36.2% for travel trailers and fifth wheels combined and approximately 47.8% for motorhomes. In Europe, according to the European Caravan Federation (“ECF”), our European market share for the three months ended March 31, 2026 was approximately 26.3% for motorcaravans and campervans combined and approximately 16.7% for caravans.

Previous 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.

Current wording

North American RV independent dealer inventory of our North American RV products as of April 30, 2026 decreased 13.7% to approximately 79,200 units, compared to approximately 91,800 units as of April 30, 2025.

Previous 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.

Current wording

THOR’s North American RV backlog as of April 30, 2026 decreased $365,952, or 24.1%, to $1,152,105 compared to $1,518,057 as of April 30, 2025. The decrease in backlog is primarily a result of a decrease in year-over-year orders for North American Towable products.

Previous wording

Key wholesale statistics for the North American RV industry, as reported by RVIA for the periods indicated, are as follows:

Current wording

Key wholesale statistics for the North American RV industry, as reported by RVIA for the periods indicated, were as follows:

Previous 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.

Current wording

In June 2026, 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 277,400 units and 36,600 units, respectively, for an annual total of approximately 314,000 units, a decrease of 8.2% from the 2025 calendar year wholesale shipments. The RVIA’s most likely forecast for calendar year 2026 of 314,000 total units could range from a lower estimate of approximately 300,000 total units to an upper estimate of approximately 328,100 total units.

Previous wording

Key retail statistics for the North American RV industry, as reported by Stat Surveys for the periods indicated, are as follows:

Current wording

Key retail statistics for the North American RV industry, as reported by Stat Surveys for the periods indicated, were as follows:

Previous 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:

Current wording

The Company’s North American wholesale RV shipments, for the three months ended March 31, 2026 and 2025 to correspond to the North American industry wholesale periods noted above, were as follows:

Previous wording

Retail statistics of the Company’s North American RV products, as reported by Stat Surveys, for the calendar years ended December 31, 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 three months ended March 31, 2026 and 2025 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 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.

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 and the Iran conflict, current interest rates, retail sales trends 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 our fiscal 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.

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 past and future increases in raw material or labor costs have had, and will have, a negative impact our profit margins 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.

Previous 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.

Current wording

We are actively managing our response to the imposition and effect of U.S. tariffs on imports, including the impact of the opinion by the U.S. Supreme Court issued in February 2026 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 tariffs on our fiscal 2026 year-to-date 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, but the impact has increased as our fiscal year has progressed. 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, with the exception of Airxcel, Inc. and its subsidiaries, 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.

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 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.

Current wording

Historically, we have generally been able to offset net cost increases over time. However, given the size and nature of the tariffs implemented since early calendar 2025, and the anticipated size and nature of any future tariffs, it is 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 such offset 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 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.

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, the current situation in the Strait of Hormuz, 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 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.

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 approximately 17.2% and 7.5% of the caravan and motorcaravan (including campervans) European market for the three months ended March 31, 2026, respectively, does not provide OEM-specific information. Industry wholesale shipment data for the European RV market is not available.

Previous wording

Independent dealer inventory of our European RV products as of January 31, 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.

Current wording

Independent dealer inventory of our European RV products as of April 30, 2026 decreased 11.3% to approximately 20,400 units as compared to approximately 23,000 units as of April 30, 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

Our European operations offer a full lineup of leisure vehicles including caravans and motorized products including urban vehicles, campervans and small-to-large motorcaravans. Our product offerings are not limited to vehicles only but also include accessories and services, including vehicle rentals. We address European retail customers through a sophisticated brand management approach based on consumer segmentation according to target group, core values and emotions. With the assistance of data-based and digital marketing, we intend to continue expanding our retail customer reach to new and younger consumer segments.

Current wording

Our European operations offer a full lineup of leisure vehicles including motorized products consisting of small-to-large motorcaravans, urban vehicles and campervans as well as non-motorized caravans. Our product offerings are not limited to vehicles only but also include accessories and services, including vehicle rentals. We address European retail customers through a sophisticated brand management approach based on consumer segmentation according to target group, core values and emotions. With the assistance of data-based and digital marketing, we intend to continue expanding our retail customer reach to new and younger consumer segments.

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. 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.

Current wording

The impact of current macroeconomic factors on our business, including consumer confidence, 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. In addition, 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 net sales prices and gross margins due to the current economic environment are expected to continue, partly due to the negative impact of material cost increases as a result of the current situation in the Strait of Hormuz. 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

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.

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 past and future increases in raw material or labor costs have and are expected to continue to negatively impact our profit margins. Historically, we have generally been able to offset net cost increases over time, however, given the current economic environment, it is more difficult and likely less desirable for us to pass on the full impact of rising material costs as we are conscious of the impact such increases likely would have on the retail consumer and their demand for our products.

Previous 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.

Current wording

Disruption in the sequence of chassis supply and the supply of other critical components has, in the past, and is continuing to, 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

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

Current wording

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

Previous 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.

Current wording

Consolidated net sales for the three months ended April 30, 2026 decreased $113,278, or 3.9%, compared to the three months ended April 30, 2025. Approximately 35.5% of the Company’s consolidated net sales for the quarter ended April 30, 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 $113,278 decrease in consolidated net sales includes an increase of $71,985 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 in Other income, net of $18,357 for the three months ended January 31, 2026 as compared to the three months ended January 31, 2025 is primarily due to both an increase of $9,162 on the gains on the sales of property, plant and equipment, primarily within the North American Towable segment, and includes the favorable change in consolidated foreign currency gains of $5,842 between the two periods.

Current wording

The increase in Other income (expense), net of $55,562 for the three months ended April 30, 2026 as compared to the three months ended April 30, 2025 was due primarily to an increase of $24,163 in the gains on the sales of property, plant and equipment, primarily within the North American Towable segment, a current-period gain of $14,031 in the fair value of certain warrants and stock investments at Corporate and a favorable change at Corporate of $11,867 on the fair value of the Company’s deferred compensation plan assets due to market value fluctuations between the two periods. In addition, there was a favorable change in consolidated foreign currency gains of $4,200 between the two periods.

Previous 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.

Current wording

The decrease of $22,107 in income before income taxes for the three months ended April 30, 2026 as compared to the three months ended April 30, 2025 was primarily driven by the combined impact of the decrease in consolidated net sales coupled with the decrease in the consolidated gross profit percentage noted above, partially offset by the increase in Other income (expense), net noted above.

Previous 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.

Current wording

The overall effective income tax rate for the three months ended April 30, 2026 was 28.4% compared to 13.9% for the three months ended April 30, 2025. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations, inclusive of the non-taxable foreign exchange gains not subject to taxation in the three months ended April 30, 2025. The tax rate for the three months ended April 30, 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.

Previous 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.

Current wording

The decrease in total North American Towable net sales of 24.6% compared to the prior-year quarter resulted from a 25.0% decrease in unit shipments due to lower consumer demand partially offset by a 0.4% increase in the overall net price per unit due to the combined impact of changes in product mix and price. According to statistics published by RVIA, for the three months ended April 30, 2026, combined North American travel trailer and fifth wheel wholesale unit shipments decreased 17.8% compared to the same period last year. According to the most recently published statistics from Stat Surveys, for the three months ended March 31, 2026 and 2025, our North American market share for travel trailers and fifth wheels combined was 36.2% and 38.3%, respectively. Comparisons of Company shipments to industry shipments on a quarterly basis would not necessarily be indicative of the results expected for a full fiscal year.

Previous 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.

Current wording

The modest increases in the overall net price per unit within the travel trailer product line of 2.8% and the fifth wheel product line of 1.2% were primarily due to product mix changes as compared to the prior-year quarter. The lower increase in the overall net price in the North American Towable segment of 0.4% was primarily due to the greater percentage of sales of the lower-priced travel trailer units as compared to the higher-priced fifth wheel units in the current-year quarter.

Previous wording

Total manufacturing overhead decreased $5,512, primarily due to the decrease in net sales and employee cost savings from the towable organizational restructuring initiatives implemented since the prior-year quarter, but increased as a percentage of North American Towable net sales from 9.1% to 9.8% as the decreased net sales levels resulted in higher overhead costs per unit sold.

Current wording

Total manufacturing overhead decreased $5,114, primarily due to the decrease in net sales and employee cost savings from the towable organizational restructuring initiatives implemented since the prior-year quarter but increased as a percentage of North American Towable net sales from 6.9% to 8.6% as the decreased net sales levels resulted in higher overhead costs per unit sold.

Previous wording

The decrease in North American Towable selling, general and administrative expenses of $9,254 for the three months ended January 31, 2026 compared to the three months ended January 31, 2025 was primarily due to a decrease of $4,670 in commissions and other employee compensation cost due to the decrease in North American Towable net sales and cost savings from the towable organizational restructuring initiatives noted above. Incentive compensation also decreased $3,598. These decreases were partially offset by an increase in sales-related travel, advertising and promotional costs of $1,126. The overall selling, general and administrative expense as a percentage of North American Towable net sales decreased 0.2% due to the cost savings noted above.

Current wording

The decrease in North American Towable selling, general and administrative expenses of $16,077 for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 was primarily due to the decreases in North American Towable net sales and income before income taxes, causing related commissions, incentive and other compensation to decrease by $18,116. These decreases were partially offset by an increase in sales-related travel, advertising and promotional costs of $2,589.

Previous 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.

Current wording

The decrease in North American Towable income before income taxes of $44,904 for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 included the decrease in North American Towable gross profit noted above being partially offset by the reduction in selling, general and administrative expenses noted above and an increase in other income of $23,056, primarily from increased gains on the sales of assets within the Towable segment. North American Towable income before income taxes as a percentage of North American Towable net sales decreased primarily due to the increase in the cost of goods sold percentage, partially offset by the increase in Other income, net as a percentage of net sales.

Previous 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.

Current wording

The increase in total North American Motorized net sales of 7.7% compared to the prior-year quarter resulted from a 9.1% 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 dealer and consumer demand compared to the demand in the prior-year quarter. According to statistics published by RVIA, for the three months ended April 30, 2026, 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 March 31, 2026 and 2025, our North American market share for motorhomes was 47.8% and 46.6%, 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 increase in the overall net price per unit within the Class A product line of 10.4% was primarily due to a higher concentration of sales of the generally higher-priced diesel units as opposed to the more moderately-priced gas units in the current-year period compared to the prior-year period. The slight increase in the overall net price per unit within the Class C product line of 0.3% was primarily due to product mix changes, and the Class B product line decrease of 2.5% was primarily due to product mix changes towards more moderately-priced units compared to the prior-year period.

Current wording

The increase in the overall net price per unit within the Class A product line of 5.1% was primarily due to a higher concentration of sales of certain higher-priced diesel units in the current-year quarter compared to the prior-year quarter. The decreases in the overall net price per unit within the Class C product line of 0.9% and within the Class B product line of 4.5% were primarily due to product mix changes towards more moderately-priced units compared to the prior-year quarter.

Previous wording

The increase of $48,794 in North American Motorized gross profit for the six months ended January 31, 2026 compared to the six 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.

Current wording

The decrease in North American Motorized gross profit of $7,350 for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 was driven by the increase in North American Motorized net sales being more than offset by the increase in the cost of products sold percentage noted above.

Previous 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.

Current wording

North American Motorized selling, general and administrative expenses increased a slight $360 for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, and there were no changes of significance within its major cost components, and the 0.3% decrease 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 $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.

Current wording

The decrease in North American Motorized income before income taxes of $7,534 for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, and the decrease in the income before income taxes percentage, were primarily due to the increase in North American Motorized cost of products sold noted above.

Previous 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.

Current wording

The increase in total European Recreational Vehicle net sales of 11.8% compared to the prior-year quarter resulted from a 4.2% increase in unit shipments and a 7.6% 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 $104,043 includes an increase of $71,985, or 8.2% 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 March 31, 2026 and 2025 was approximately 24.4% and 22.9%, 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 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.

Current wording

The overall net price per unit increase of 7.6% includes an 8.2% increase due to the impact of foreign currency exchange rate changes and a 0.6% constant-currency decrease due to the combined impact of product mix and price.

Previous wording

The constant-currency decrease in the overall net price per unit within the Motorcaravan product line of 1.2% was primarily due to a higher concentration of sales of lower-priced entry level and special-edition motorcaravan products in the current-year quarter. The constant-currency decrease in the overall net price per unit within the Campervan product line of 1.5% was primarily due to the current-year quarter including a lower concentration of Campervan units with a purchased chassis that is included in the unit sales price as opposed to units with a customer-supplied chassis that is not included in the unit sales price. The constant-currency decrease in the Caravan product line of 9.3% was primarily due to increased sales discounting.

Current wording

The constant-currency decreases in the overall net price per unit within the Motorcaravan product line of 4.9% and the Caravan product line of 5.7% were primarily due to a higher concentration of sales of lower-priced entry-level and special-edition motorcaravan products in the current-year quarter. The constant-currency increase in the overall net price per unit within the Campervan product line of 1.0% was primarily due to the current-year quarter including a lower concentration of the lower-priced urban vehicle products compared to the prior-year quarter.