On this page of StockholderLetter.com we present the latest annual shareholder letter from THOR INDUSTRIES INC — ticker symbol THO. Reading current and past THO letters to shareholders can bring important insights into the investment thesis.

 •  11/6/2024 Letter Continued (Full PDF)
 •  11/1/2023 THO Stockholder Letter
 •  More "Auto Manufacturers" Category Stockholder Letters
 •  THO Benford's Law Stock Score = 93

THO Shareholder/Stockholder Letter Transcript:

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THOR INDUSTRIES ANNUAL REPORT FISCAL 2024
THOR I N DU ST RI E S , IN C .
ANNUAL
SC
AL YEA
20
24
R
FI
REPORT

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THOR INDUSTRIES ANNUAL REPORT FISCAL 2024
Letter from the CEO
TO OUR FELLOW SHAREHOLDERS
OF THOR INDUSTRIES:
We are proud to have built a
Company that can perform
in any market and across any
economic cycle.
CONTINUED LEADERSHIP IN
INNOVATION
Fiscal Year 2024 demonstrated the value of our investment
our recent Dealer Open House, including a first of its
in geographic and product diversity and our ability to
kind, plug-in hybrid Class A motorhome prototype.
execute on our proven downturn playbook, advancing key
We partnered with Harbinger Motors to develop a
initiatives and margin improvements while maintaining
motorhome chassis capable of a combined 500-mile
our focus on prudent alignment of our production with the
range, well ahead of the current range expectations
retail environment, particularly within our North American
of consumers. The prototype was on display at our
market. While macroeconomic uncertainties persist, we
Dealer Open House, offering dealers, media and
remain committed to delivering value to our shareholders.
investors the opportunity to experience first-hand
In fiscal year 2024, we delivered record results in Europe,
improving both margin and market share and are now
Our global innovation team continues to set the
pace for new developments that will change not
only the face of our products but how we produce
them. We introduced several exciting innovations at
the superior ride and handling of this coach ahead
of our planned commercialization in calendar 2025.
the European leader in total industry market share. Our
Continuing the electrification trend, we introduced
North American operating companies produced strong
the HV-1 towable chassis that includes battery packs
margins relative to current market conditions through
and solar power generation to enable consumers
production optimization and strategic initiatives to
to stay off grid for an extended duration. Off-grid
drive margin improvements, validating our efforts to
camping has been one of the biggest trends
structurally enhance margins even under challenging
among consumers for the past several years, but
conditions. As an enterprise, we achieved over $10.0
the challenge has been creating a way to power
billion in net sales. We generated net income attributable
appliances, climate systems and technology without
to THOR of $265.3 million, or $4.94 per diluted share.
being connected to a power source. The HV-1 towable
From a cash flow perspective, we continued to effectively
chassis will allow owners to camp off grid for weeks
manage inventory within the current environment,
on end, without giving up the comforts of home.
contributing to cash flows from operations of $545.5
million for the fiscal year. We utilized this cash to repay
$224.2 million of our total debt and returned $170.5
million to shareholders in the form of cash dividends and
repurchases of common stock.
In addition to these innovations, our team has
also been working on automation and improved
processes that will enhance the productivity of
our workforce and the quality of our products. The
team has developed new automation for laminated

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sidewall routing that enhances efficiency and
alleviates pressure on one of the most physically
demanding and highest turnover positions within
Fiscal
Year 2024
demonstrated
the value of
our investment
in geographic
and product
diversity and
our ability to
execute on
our proven
downturn
playbook.
Bob Martin, President and
Chief Executive Officer
our production process. As a further enhancement,
we also introduced printed sidewalls, which can
be printed with a range of custom and standard
designs, enhancing quality and reducing labor
content on the manual design application process.
Beyond their attractiveness, printed sidewalls also
offer enhanced quality and the ability to easily repair
damage from regular use.
RESPONSIBLE LEADERSHIP
In fiscal year 2024, we released our sixth annual
Corporate
ongoing
Sustainability
efforts
in
Report
outlining
environmental,
social
our
and
governance matters. Our efforts encompass THOR   s
four core values that also shape the way we approach
sustainability:
Adventurous
(Environmental),
Community, Compassionate (Social Responsibility)
and Trustworthy (Effective Governance).
Our innovation work has been a key component
of our environmental efforts, as we work to drive
energy efficiency and reduce the environmental
impact of our products, in alignment with what our
core consumers are demanding. Social responsibility
encompasses the work we do surrounding our great
team members and how we positively impact our
communities. We are focused on creating a culture
where every member of our team can thrive.
In terms of effective governance, we are fortunate
to have an incredibly talented and diverse Board
of
Directors.
Our
entire
management
team
benefits from the oversight, perspective and depth
of experience of our Board as we develop and
implement long-term strategic plans. During fiscal
2024, we added a new director, Jeff Lorenger. Jeff
is a proven leader in manufacturing and managing

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THOR INDUSTRIES ANNUAL REPORT FISCAL 2024
independent distribution networks, leading some of the
record results posted in fiscal year 2024 as well as the
best-known brands in the office furniture industry. We
conclusion of dealer restocking, resulting in our outlook
are looking forward to his contributions as we pursue our
for a modest reduction in European segment net sales.
innovation strategy and employ continuous improvement
initiatives in every aspect of our business.
A CONSERVATIVE APPROACH TO
FISCAL YEAR 2025
In the meantime, we will continue to operate the
Company as efficiently as possible in the current
challenging environment. Our operating companies are
well positioned to leverage the capacity of THOR to realize
the financial benefits of the coming return of a robust
As we look forward to the coming fiscal year, we are
retail environment where we expect to seize market
encouraged by the Federal Reserve   s recent first steps in
share and meaningfully grow diluted EPS as we have
the reduction of interest rates and other macroeconomic
after previous down cycles. We remain confident that our
factors that will boost consumer confidence in the long
strong financial position and status as the global leader in
term. Until those factors and additional interest rate
the RV industry enables THOR to meet the challenges of
reductions fully materialize, we still see challenges in the
the current market, positioning us for success in the long
near term. As a result, our full-year fiscal 2025 guidance
term.
reflects our conservative outlook on the macroeconomic
conditions.
For fiscal 2025 we expect:
    Consolidated net sales in the range of $9.0 billion to
$9.8 billion
    Consolidated gross profit margin in the range of 14.7%
to 15.2%
    Diluted earnings per share in the range of $4.00 to
Finally, I would like to express my gratitude to each
member of our global team for their dedication and hard
work to enhance the experiences of families of all types
who enjoy the outdoors and for delivering on THOR   s
promise to Go Everywhere, Stay Anywhere.   I also want
to thank our shareholders and other stakeholders for your
continued confidence and dedication to our Company as
we work to achieve our long-term strategic vision.
$5.00
We remain confident in the strong return of our market
as macroeconomic conditions improve and our optimism
remains steadfast. We are already seeing early signs of
improvement, starting with the recent retail shows this fall.
The strong growth in interest in the RV lifestyle remains,
and we see consumers who bought RVs in the past three
years on the cusp of entering a renewed trade-in cycle. In
North America, our operating plan for fiscal 2025 reflects
an industry wholesale shipment range of between 330,000
and 345,000 units with wholesale shipments matching
retail demand in total, but we are expecting that dealers
will hold off as long as possible on stocking for the spring
selling season to keep inventory levels low over the winter
months. In Europe, we face a tougher comparison to the
Bob Martin
President and
Chief Executive Officer



 11/6/2024 Letter Continued (Full PDF)