# THOR INDUSTRIES INC (THO) FY 2026 MD&A

Verbatim Item 7 Management's Discussion and Analysis from THOR INDUSTRIES INC's 10-K for fiscal year 2026.

SEC filing source: https://www.sec.gov/Archives/edgar/data/730263/000073026326000027/tho-20260731.htm
Accession: 0000730263-26-000027
Filing date: 2026-09-22
Report date: 2026-07-31
Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high

Company profile: /company/THO/
All MD&A years: /company/THO/mda/
Previous year: /company/THO/mda/fy2025/ (FY 2025)

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless otherwise indicated, all Dollar and Euro amounts are presented in thousands except per share data.

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in Item 8 of this Report.

The discussion below is a comparison of the results of operations and changes in financial condition for the fiscal years ended July 31, 2026 and 2025. The comparison of, and changes between, the fiscal years ended July 31, 2025 and 2024 can be found within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025, as filed with the SEC on September 24, 2025.

Executive Summary

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 Stat Surveys, for the six months ended June 30, 2026, THOR’s current combined U.S. and Canadian market share based on units was approximately 36.8% for travel trailers and fifth wheels combined and approximately 49.8% for motorhomes. In Europe, according to the ECF, EHG’s current market share for the six months ended June 30, 2026 based on units was approximately 27.0% for motorcaravans and campervans combined and approximately 16.6% for caravans.

Our business model includes decentralized operating units, and our RV products are primarily sold to independent, non-franchise dealers who, in turn, retail those products. The Company also sells component parts to both RV and other original equipment manufacturers, including aluminum extruded components, and sells aftermarket component parts through dealers and retailers. Our growth has been achieved both organically and through acquisition, and our strategy is designed to increase our profitability by driving innovation, servicing our customers, manufacturing quality products, improving the efficiencies of our facilities and making strategic growth acquisitions.

We generally do not finance dealers directly, but we do provide repurchase agreements to the dealers’ floor plan lenders.

We generally have financed our growth through a combination of internally generated cash flows from operations and, when needed, outside credit facilities. Capital acquisitions of $154,632 in fiscal 2026 were primarily purchases of land, production building additions and improvements and replacements of machinery and equipment used in the ordinary course of business. See Note 2 to the Consolidated Financial Statements for capital acquisitions by segment. The impact of consumer confidence, which historically has been highly correlated with RV retail sales, and the impact of inflation on the availability of discretionary funds of our end consumers, combined with higher interest rates compared to recent years impacting both our independent dealers and the end consumer, had a negative impact on demand for our products at both the wholesale and retail levels during fiscal 2026, particularly in North America, and are expected to continue to impact the remainder of calendar year 2026. These risks to our business are more fully described in Part I, Item 1A “Risk Factors” of this Report.

Significant Fiscal 2026 and Fiscal 2025 Events

Restructuring Activities

During fiscal year 2026 and fiscal year 2025, the Company embarked upon numerous and varied restructuring initiatives that impacted the majority of its operations across all reportable segments in efforts to streamline operations and improve labor efficiencies. See Note 17 to the Consolidated Financial Statements for additional information regarding these restructuring activities.

32

Tax Reform

The One Big Beautiful Bill Act (“OBBB”) was signed into law on July 4, 2025. The OBBB includes a broad range of tax reform provisions affecting businesses including, but not limited to, 100% bonus depreciation, expensing of U.S.-based research and development costs, interest expense deduction limitations and changes to international tax provisions. The most relevant impact to the Company for fiscal 2025 was the 100% bonus depreciation for qualified property placed in service after January 19, 2025. The other relevant provisions of the OBBB impact the Company in fiscal years 2026 and 2027. For fiscal year 2026, the Company had the option to accelerate its previously capitalized and unamortized U.S. research and development costs over a one or two-year period, and elected to accelerate and deduct all such costs in fiscal year 2026. Changes to the international provisions will impact the Company in fiscal year 2027.

North American RV Industry

The Company monitors industry conditions in the North American RV market using a number of resources including its own performance tracking and modeling. The Company also considers monthly wholesale shipment data as reported by the RV Industry Association (“RVIA”), which is typically issued on a one-month lag and represents manufacturers’ North American RV production and delivery to dealers. In addition, we monitor monthly North American retail sales trends as reported by Stat Surveys, whose data is typically issued on a month-and-a-half lag. The Company believes that monthly RV retail sales data is important as consumer purchases impact future dealer orders and ultimately our production and net sales.

North American RV independent dealer inventory of our North American RV products as of July 31, 2026 decreased 12.7% to approximately 64,000 units from approximately 73,300 units as of July 31, 2025.

As of July 31, 2026, we believe North American dealer inventory levels for most products are generally in line with the levels that dealers are comfortable stocking given the current retail sales levels and associated carrying costs. We believe dealers will continue to closely evaluate the unit stocking levels that they will elect to carry in future periods, which may be less than historical unit stocking levels, due to a combination of factors such as current retail activity, current RV wholesale prices as well as current interest rates and other carrying costs.

THOR’s total North American RV backlog as of July 31, 2026 increased $115,156, or 7.5%, to $1,644,790 from $1,529,634 as of July 31, 2025. The increase in backlog is primarily a result of an increase in year-over-year orders for North American Towable products.

North American Industry Wholesale Statistics

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

[[GREPCENT_TABLE]]
[["","","U.S. and Canada Wholesale Unit Shipments"],["","","Six Months Ended June 30,","","Increase","","%"],["","","2026","","2025","","(Decrease)","","Change"],["North American Towable units","","143,149","","","172,041","","","(28,892)","","","(16.8)"],["North American Motorized units","","20,495","","","18,664","","","1,831","","","9.8"],["Total","","163,644","","","190,705","","","(27,061)","","","(14.2)"]]
[[/GREPCENT_TABLE]]

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

33

North American Industry Retail Statistics

We believe that retail demand is the key to growth in the North American RV industry.

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

[[GREPCENT_TABLE]]
[["","","U.S. and Canada Retail Unit Registrations"],["","","Six Months Ended June 30,","","Increase","","%"],["","","2026","","2025","","(Decrease)","","Change"],["North American Towable units","","141,177","","","167,010","","","(25,833)","","","(15.5)"],["North American Motorized units","","17,853","","","19,687","","","(1,834)","","","(9.3)"],["Total","","159,030","","","186,697","","","(27,667)","","","(14.8)"]]
[[/GREPCENT_TABLE]]

Note: Data reported by Stat Surveys is based on official state and provincial records. This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or provinces.

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.

Company North American Wholesale Statistics

The Company’s North American wholesale RV shipments, for the six months ended June 30, 2026 and 2025, to correspond with the industry wholesale periods noted above, were as follows:

[[GREPCENT_TABLE]]
[["","","U.S. and Canada Wholesale Unit Shipments"],["","","Six Months Ended June 30,","","Increase","","%"],["","","2026","","2025","","(Decrease)","","Change"],["North American Towable units","","49,853","","","66,101","","","(16,248)","","","(24.6)"],["North American Motorized units","","10,569","","","9,947","","","622","","","6.3"],["Total","","60,422","","","76,048","","","(15,626)","","","(20.5)"]]
[[/GREPCENT_TABLE]]

Company North American Retail Statistics

Retail statistics of the Company’s North American RV products, as reported by Stat Surveys, for the six months ended June 30, 2026 and 2025, to correspond with the industry retail periods noted above, were as follows:

[[GREPCENT_TABLE]]
[["","","U.S. and Canada Retail Unit Registrations"],["","","Six Months Ended June 30,","","Increase","","%"],["","","2026","","2025","","(Decrease)","","Change"],["North American Towable units","","50,909","","","63,821","","","(12,912)","","","(20.2)"],["North American Motorized units","","8,889","","","9,543","","","(654)","","","(6.9)"],["Total","","59,798","","","73,364","","","(13,566)","","","(18.5)"]]
[[/GREPCENT_TABLE]]

Note: Data reported by Stat Surveys is based on official state and provincial records. This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or provinces.

34

North American Outlook

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 2027. 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 calendar 2026, and potentially beyond, will continue to be negatively impacted by these factors. In particular, elevated fuel prices resulting from the ongoing Iran conflict and the related disruption of shipping through the Strait of Hormuz may negatively impact retail demand for our products.

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. We believe many consumers who were exposed to the industry for the first time over the last few years 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.

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 continue to have, a negative impact on 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. During fiscal 2026, we intentionally did not fully pass along cost increases we incurred, including tariff-related costs, relative to raw material input costs in an effort to manage end-consumer affordability of our products. Our margins were negatively impacted as a result and will continue to be negatively impacted if we are unable to share the burden of future inflationary cost increases across the RV supply chain.

We are actively managing our response to the imposition and effect of U.S. tariffs on imports, including: (i) the impact of the opinion by the U.S. Supreme Court issued in February 2026 holding that the International Emergency Economic Powers Act ("IEEPA") does not authorize the imposition of tariffs; (ii) the court-ordered process for refunding tariffs previously collected under IEEPA; (iii) the temporary 10% global tariff imposed under Section 122 of the Trade Act of 1974 that was in effect from late February 2026 until its expiration in late July 2026 and remains subject to ongoing legal challenges; and (iv) the potential imposition of new tariffs under other statutory authorities, including tariffs that may result from pending investigations under Section 301 of the Trade Act of 1974. We are also monitoring retaliatory tariffs or other measures that certain other countries have already imposed or may impose on U.S. imports into those countries, which may increase our material costs, disrupt our supply of materials or negatively impact our sales into other countries.

Our fiscal 2026 results were impacted by tariffs both through higher component costs and our inability to pass on certain cost increases to dealers in the form of higher product pricing due to the need to maintain affordability for our dealers and end customers. This impact of tariffs on our fiscal 2026 results was initially mitigated, to some degree, by 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 increased as fiscal 2026 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 fiscal 2027 results given the rapidly changing environment surrounding tariffs and related trade policy developments, including the recent developments between the U.S. and Canada.

35

As an additional consideration, with the exception of Airxcel, Inc. and its subsidiaries, our operating subsidiaries generally do not import products or components directly, but rather purchase them through third-party vendors, meaning we do not have complete visibility regarding the timing or impact of tariffs on the pricing of those components.

Nonetheless, we have taken and continue to take a number of affirmative steps. We are actively engaging our vendors regarding the timing and extent of any tariff pass-through costs, including challenging pass-through charges that we believe are not properly supported, and, where possible, are sourcing components from alternative, lower-priced suppliers. With respect to tariffs imposed under the IEEPA, which the U.S. Court of International Trade has ordered U.S. Customs and Border Protection ("CBP") to refund following the Supreme Court's decision, we have filed refund claims with CBP for tariffs we paid as the importer of record and are pursuing recovery from third-party vendors that passed tariff costs through to us on imports for which they were the importer of record. The ultimate amount and timing of any refunds or supplier recoveries remain uncertain and will depend on the resolution of the matters described above, including the implementation of the Supreme Court’s February 2026 decision, related agency and judicial proceedings, and the outcome of our discussions with vendors.

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 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.

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 ongoing Iran conflict and the related disruption of shipping through 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.

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

European RV Industry

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 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 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 14.1% and 8.9% of the caravan and motorcaravan (including campervans) European market, respectively, for the six months ended June 30, 2026, does not provide OEM-specific information. Industry wholesale shipment data for the European RV market is not available.

Within Europe, over 90% of our sales are made to dealers within 10 different European countries. The market conditions, as well as the operating status of our independent dealers within each country, vary based on the various local economic and other conditions. It is inherently difficult to generalize about the operating conditions within the entire European region.

Independent dealer inventory of our European RV products as of July 31, 2026 was approximately 20,500 units as compared to approximately 22,200 units as of July 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.

Our European Recreational Vehicle backlog as of July 31, 2026 increased $128,378, or 8.4%, to $1,653,970 compared to $1,525,592 as of July 31, 2025.

36

European Industry Retail Statistics

Key retail statistics for the European RV industry, as reported by the ECF for the periods indicated, are as follows:

[[GREPCENT_TABLE]]
[["","","European Unit Registrations"],["","","Motorcaravan and Campervan (2)","","Caravan"],["","","Six Months Ended June 30,","","% Change","","Six Months Ended June 30,","","% Change"],["","","2026","","2025","","2026","","2025"],["OEM Reporting Countries (1)","","85,530","","","82,836","","","3.3","","","25,317","","","24,909","","","1.6"],["Non-OEM Reporting Countries (1)","","12,127","","","12,315","","","(1.5)","","","5,903","","","6,393","","","(7.7)"],["Total","","97,657","","","95,151","","","2.6","","","31,220","","","31,302","","","(0.3)"]]
[[/GREPCENT_TABLE]]

(1)Industry retail registration statistics have been compiled from individual countries' reporting of retail sales, and include the following countries: Germany, France, Sweden, Netherlands, Norway, Italy, Spain and others, collectively the “OEM Reporting Countries.” The “Non-OEM Reporting Countries” are primarily the United Kingdom and others. Total European unit registrations are reported quarterly by the ECF.

(2)The ECF reports motorcaravans and campervans together.

Note: Data from the ECF is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various countries. (The "Non-OEM Reporting Countries" either do not report OEM-specific data to the ECF or do not have it available for the entire time period covered).

Company European Retail Statistics

[[GREPCENT_TABLE]]
[["","","European Unit Registrations (1)"],["","","Six Months Ended June 30,","","Increase","","%"],["","","2026","","2025","","(Decrease)","","Change"],["Motorcaravan and Campervan","","23,118","","","21,572","","","1,546","","","7.2"],["Caravan","","4,214","","","4,307","","","(93)","","","(2.2)"],["Total OEM-Reporting Countries","","27,332","","","25,879","","","1,453","","","5.6"]]
[[/GREPCENT_TABLE]]

(1)Company retail registration statistics have been compiled from individual countries' reporting of retail sales, and include the following countries: Germany, France, Sweden, Netherlands, Norway, Italy, Spain and others, collectively the “OEM Reporting Countries.”

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

European Outlook

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.

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 is expected to continue, partly due to the negative impact of material cost increases, in part 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.

37

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 Caravan Salon show in Düsseldorf in September 2026, was once again well attended and yielded strong sales, which demonstrates a sustained 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.

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 increases in raw material or labor costs have negatively impacted, 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.

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.

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

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.

38

RESULTS OF OPERATIONS

FISCAL 2026 VS. FISCAL 2025

[[GREPCENT_TABLE]]
[["","FISCAL 2026","","","","FISCAL 2025","","","","Change Amount","","% Change"],["NET SALES:"],["Recreational vehicles"],["North American Towable","$","3,176,687","","","","","$","3,784,666","","","","","$","(607,979)","","","(16.1)"],["North American Motorized","2,455,160","","","","","2,175,604","","","","","279,556","","","12.8"],["Total North America","5,631,847","","","","","5,960,270","","","","","(328,423)","","","(5.5)"],["European","3,296,729","","","","","3,023,961","","","","","272,768","","","9.0"],["Total recreational vehicles","8,928,576","","","","","8,984,231","","","","","(55,655)","","","(0.6)"],["Other","976,976","","","","","859,609","","","","","117,367","","","13.7"],["Intercompany eliminations","(297,407)","","","","","(264,350)","","","","","(33,057)","","","(12.5)"],["Total","$","9,608,145","","","","","$","9,579,490","","","","","$","28,655","","","0.3"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["# OF UNITS:"],["Recreational vehicles"],["North American Towable","95,045","","","","","119,790","","","","","(24,745)","","","(20.7)"],["North American Motorized","19,288","","","","","17,153","","","","","2,135","","","12.4"],["Total North America","114,333","","","","","136,943","","","","","(22,610)","","","(16.5)"],["European","45,623","","","","","44,445","","","","","1,178","","","2.7"],["Total","159,956","","","","","181,388","","","","","(21,432)","","","(11.8)"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","","% of Segment Net Sales","","","","% of Segment Net Sales"],["GROSS PROFIT:"],["Recreational vehicles"],["North American Towable","$","356,577","","","11.2","","","$","496,976","","","13.1","","","$","(140,399)","","","(28.3)"],["North American Motorized","215,850","","","8.8","","","210,634","","","9.7","","","5,216","","","2.5"],["Total North America","572,427","","","10.2","","","707,610","","","11.9","","","(135,183)","","","(19.1)"],["European","443,683","","","13.5","","","460,319","","","15.2","","","(16,636)","","","(3.6)"],["Total recreational vehicles","1,016,110","","","11.4","","","1,167,929","","","13.0","","","(151,819)","","","(13.0)"],["Other, net","196,520","","","20.1","","","172,712","","","20.1","","","23,808","","","13.8"],["Total","$","1,212,630","","","12.6","","","$","1,340,641","","","14.0","","","$","(128,011)","","","(9.5)"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:"],["Recreational vehicles"],["North American Towable","$","221,454","","","7.0","","","$","256,536","","","6.8","","","$","(35,082)","","","(13.7)"],["North American Motorized","130,004","","","5.3","","","124,715","","","5.7","","","5,289","","","4.2"],["Total North America","351,458","","","6.2","","","381,251","","","6.4","","","(29,793)","","","(7.8)"],["European","327,621","","","9.9","","","306,254","","","10.1","","","21,367","","","7.0"],["Total recreational vehicles","679,079","","","7.6","","","687,505","","","7.7","","","(8,426)","","","(1.2)"],["Other, net","89,166","","","9.1","","","81,517","","","9.5","","","7,649","","","9.4"],["Corporate","135,151","","","\u2014","","","153,532","","","\u2014","","","(18,381)","","","(12.0)"],["Total","$","903,396","","","9.4","","","$","922,554","","","9.6","","","$","(19,158)","","","(2.1)"]]
[[/GREPCENT_TABLE]]

39

[[GREPCENT_TABLE]]
[["","FISCAL 2026","","% of Segment Net Sales","","FISCAL 2025","","% of Segment Net Sales","","Change Amount","","% Change"],["INCOME (LOSS) BEFORE INCOME TAXES:"],["Recreational vehicles"],["North American Towable","$","147,329","","","4.6","","","$","247,012","","","6.5","","","$","(99,683)","","","(40.4)"],["North American Motorized","74,163","","","3.0","","","85,343","","","3.9","","","(11,180)","","","(13.1)"],["Total North America","221,492","","","3.9","","","332,355","","","5.6","","","(110,863)","","","(33.4)"],["European","72,241","","","2.2","","","101,634","","","3.4","","","(29,393)","","","(28.9)"],["Total recreational vehicles","293,733","","","3.3","","","433,989","","","4.8","","","(140,256)","","","(32.3)"],["Other, net","72,077","","","7.4","","","53,740","","","6.3","","","18,337","","","34.1"],["Corporate","(127,089)","","","\u2014","","","(191,538)","","","\u2014","","","64,449","","","33.6"],["Total","$","238,721","","","2.5","","","$","296,191","","","3.1","","","$","(57,470)","","","(19.4)"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","As ofJuly 31, 2026","","","","As ofJuly 31, 2025","","","","Change Amount","","% Change"],["ORDER BACKLOG:"],["Recreational vehicles"],["North American Towable","$","916,584","","","","","$","525,014","","","","","$","391,570","","","74.6"],["North American Motorized","728,206","","","","","1,004,620","","","","","(276,414)","","","(27.5)"],["Total North America","1,644,790","","","","","1,529,634","","","","","115,156","","","7.5"],["European","1,653,970","","","","","1,525,592","","","","","128,378","","","8.4"],["Total","$","3,298,760","","","","","$","3,055,226","","","","","$","243,534","","","8.0"]]
[[/GREPCENT_TABLE]]

CONSOLIDATED

Consolidated net sales for fiscal 2026 increased $28,655, or 0.3%, compared to fiscal 2025. Approximately 34% of the Company’s consolidated net sales for fiscal 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 increase in consolidated net sales in fiscal 2026 included an increase of $179,432 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.

Consolidated gross profit for fiscal 2026 decreased $128,011, or 9.5%, compared to fiscal 2025. Consolidated gross profit was 12.6% of consolidated net sales for fiscal 2026 and 14.0% for fiscal 2025. The decreases in consolidated gross profit and the consolidated gross profit percentage in fiscal 2026 compared to fiscal 2025 were both primarily due to unfavorable changes in North American Towable and European product mix toward lower-margin products in addition to absorbing more material cost increases in fiscal 2026 as compared to fiscal 2025.

Selling, general and administrative expenses for fiscal 2026 decreased $19,158, or 2.1%, compared to fiscal 2025. This slight decrease was primarily due to a reduction in incentive compensation costs in correlation with the decrease in income before income taxes in fiscal 2026 compared to fiscal 2025. Selling, general and administrative expenses were 9.4% of consolidated net sales for fiscal 2026 and 9.6% for fiscal 2025, with the decrease in percentage primarily due to a decrease in the incentive and other compensation cost percentage in fiscal 2026 compared to fiscal 2025.

The increase in Other income, net of $32,910 for fiscal 2026 as compared to fiscal 2025 included an increase of $12,232 in the gain on the sales of property, plant and equipment in fiscal 2026 as compared to fiscal 2025, a favorable change in consolidated foreign currency gains of $12,996 between the two periods and increased gains of $16,391 in the fair value of certain warrants and stock investments at Corporate. In addition, there was a $5,373 favorable change at Corporate in the fair value of the Company's deferred compensation plan assets due to market value fluctuations between the fiscal years and a favorable improvement in the operating results of our equity-method investments of $4,849. These favorable changes were partially offset by an impairment charge of $7,822 taken in fiscal 2026 on certain North American Towable assets held for sale at July 31, 2026 and $12,153 of insurance income in fiscal 2025 related to the weather event discussed in Note 20 to the Consolidated Financial Statements.

40

Amortization of intangible assets expense for fiscal 2026 decreased $6,868, or 5.8%, to $112,159, compared to fiscal 2025 primarily due to a reduction in dealer network amortization, which is amortized on an accelerated basis and therefore decreases over time.

The decrease of $57,470, or 19.4%, in income before income taxes for fiscal 2026 compared to fiscal 2025, was primarily driven by the decrease in gross profit noted above, partially offset by the decreases in selling, general and administrative expense and amortization expense and the increase in other income, net noted above.

The overall annual effective income tax rate for fiscal 2026 was 26.8%, compared with 13.4% for fiscal 2025. The year-over-year change is a result of the jurisdictional mix of earnings between foreign and domestic operations. The rate for the current year was negatively impacted by certain losses in foreign jurisdictions without an associated tax benefit and changes in statutory tax rates in certain foreign jurisdictions. The rate for fiscal 2025 was favorably impacted by a foreign tax law change that resulted in a favorable revaluation of foreign deferred tax liabilities.

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

The $18,381 decrease in Corporate expenses included in selling, general and administrative expenses for fiscal 2026 compared to fiscal 2025 included a decrease in compensation costs of $15,856, primarily due to employee separation costs related to certain restructuring headcount reductions in fiscal 2025, and a decrease in research and development costs of $7,326. These decreases were partially offset by an increase of $6,302 in certain dealer promotional costs.

Corporate interest and other income, net changed favorably by $46,068 in fiscal 2026 compared to fiscal 2025, primarily due to an increase in the gains in the fair value of certain warrants and stock investments of $16,391 in fiscal 2026 compared to fiscal 2025, a favorable change of $5,373 in the fair value of the Company’s deferred compensation plan assets due to market value fluctuations between the fiscal years and a favorable change of $7,219 related to non-cash foreign currency gains on certain Euro-denominated loans between the fiscal years. Net interest expense also decreased $9,222 primarily due to lower overall average outstanding debt balances and slightly lower overall interest rates. In addition, there was a favorable improvement in the operating results of our equity-method investments of $4,849.

41

SEGMENT REPORTING

North American Towable Recreational Vehicles

Analysis of Change in Net Sales for Fiscal 2026 vs. Fiscal 2025

[[GREPCENT_TABLE]]
[["","","Fiscal 2026","","% of Segment Net Sales","","Fiscal 2025","","% of Segment Net Sales","","Change Amount","","% Change"],["NET SALES:"],["North American Towable"],["Travel Trailers","","$","1,865,588","","","58.7","","","$","2,298,926","","","60.7","","","$","(433,338)","","","(18.8)"],["Fifth Wheels","","1,311,099","","","41.3","","","1,485,740","","","39.3","","","(174,641)","","","(11.8)"],["Total North American Towable","","$","3,176,687","","","100.0","","","$","3,784,666","","","100.0","","","$","(607,979)","","","(16.1)"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Fiscal 2026","","% of Segment Shipments","","Fiscal 2025","","% of Segment Shipments","","Change Amount","","% Change"],["# OF UNITS:"],["North American Towable"],["Travel Trailers","","74,999","","","78.9","","","96,681","","","80.7","","","(21,682)","","","(22.4)"],["Fifth Wheels","","20,046","","","21.1","","","23,109","","","19.3","","","(3,063)","","","(13.3)"],["Total North American Towable","","95,045","","","100.0","","","119,790","","","100.0","","","(24,745)","","","(20.7)"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:","% Change"],["North American Towable"],["Travel Trailers","3.6"],["Fifth Wheels","1.5"],["Total North American Towable","4.6"]]
[[/GREPCENT_TABLE]]

The decrease in total North American Towable net sales of 16.1% compared to the prior fiscal year resulted from a 20.7% decrease in unit shipments and a 4.6% 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 was primarily due to lower demand for the lower-cost travel trailer units relative to the prior fiscal year, as travel trailer unit shipments decreased 22.4% from the prior year. According to statistics published by RVIA, for the twelve months ended July 31, 2026, combined travel trailer and fifth wheel wholesale unit shipments decreased 11.5% compared to the same period ending July 31, 2025. According to statistics published by Stat Surveys, for the twelve-month periods ended June 30, 2026 and 2025, our retail market share for travel trailers and fifth wheels combined was 37.4% and 38.4%, respectively.

The modest increases in the overall net price per unit within the travel trailer product line of 3.6% and the fifth wheel product line of 1.5% during fiscal 2026 were both primarily due to product mix changes as compared to fiscal 2025. The slightly higher increase in the overall net selling price in the North American Towable segment of 4.6% was also impacted by a greater percentage of sales of the higher-priced fifth wheel units as compared to travel trailer units in the current fiscal year.

North American Towable cost of products sold decreased $467,580 to $2,820,110, or 88.8% of North American Towable net sales, for fiscal 2026 compared to $3,287,690, or 86.9% of North American Towable net sales, for fiscal 2025. Changes in material, labor, freight-out and warranty costs comprised $439,013 of the $467,580 decrease in cost of products sold. Material, labor, freight-out and warranty costs as a combined percentage of North American Towable net sales were 80.0% for fiscal 2026 and 78.8% for fiscal 2025, with the increase primarily due to an increase in the material cost percentage due to more lower-margin product sales coupled with material cost increases, partially offset by a decrease in the warranty cost percentage.

42

Total manufacturing overhead decreased $28,567 in correlation with the decrease in net sales and employee cost savings from towable organizational restructuring initiatives implemented since the prior fiscal year, but increased as a percentage of North American Towable net sales from 8.1% to 8.8% as a result of the decreased net sales. Variable costs included in manufacturing overhead decreased $22,946 in fiscal 2026 compared to fiscal 2025 primarily due to a reduction in employee wage and benefit costs.

The decrease of $140,399 in North American Towable gross profit for fiscal 2026 compared to fiscal 2025 was driven primarily by the decrease in North American Towable net sales while the decrease in the gross profit percentage is due to the increase in the cost of products sold percentage noted above.

The decrease of $35,082 in North American Towable selling, general and administrative expenses for fiscal 2026 compared to fiscal 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 $37,843. This decrease was partially offset by an increase in sales-related travel, advertising and promotional costs of $6,777. The overall selling, general and administrative expense as a percentage of North American Towable net sales increased 0.2% primarily due to the decrease in North American Towable net sales.

The decrease of $99,683 in North American Towable income before income taxes for fiscal 2026 compared to fiscal 2025 was primarily due to the decrease in North American Towable gross profit being partially offset by the reduction in selling, general and administrative expenses noted above and an increase in Other income, net of $3,410, primarily from increased gains on the sales of fixed assets, net of certain fixed asset impairment restructuring charges. The North American Towable income before income taxes as a percentage of North American Towable net sales decreased due to the increase in the cost of products sold as a percentage of net sales.

43

North American Motorized Recreational Vehicles

Analysis of Change in Net Sales for Fiscal 2026 vs. Fiscal 2025

[[GREPCENT_TABLE]]
[["","","Fiscal 2026","","% of Segment Net Sales","","Fiscal 2025","","% of Segment Net Sales","","Change Amount","","% Change"],["NET SALES:"],["North American Motorized"],["Class A","","$","673,300","","","27.4","","","$","633,418","","","29.1","","","$","39,882","","","6.3"],["Class C","","1,283,822","","","52.3","","","1,068,113","","","49.1","","","215,709","","","20.2"],["Class B","","498,038","","","20.3","","","474,073","","","21.8","","","23,965","","","5.1"],["Total North American Motorized","","$","2,455,160","","","100.0","","","$","2,175,604","","","100.0","","","$","279,556","","","12.8"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Fiscal 2026","","% of Segment Shipments","","Fiscal 2025","","% of Segment Shipments","","Change Amount","","% Change"],["# OF UNITS:"],["North American Motorized"],["Class A","","3,375","","","17.5","","","3,301","","","19.2","","","74","","","2.2"],["Class C","","11,684","","","60.6","","","9,890","","","57.7","","","1,794","","","18.1"],["Class B","","4,229","","","21.9","","","3,962","","","23.1","","","267","","","6.7"],["Total North American Motorized","","19,288","","","100.0","","","17,153","","","100.0","","","2,135","","","12.4"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["IMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:","% Change"],["North American Motorized"],["Class A","4.1"],["Class C","2.1"],["Class B","(1.6)"],["Total North American Motorized","0.4"]]
[[/GREPCENT_TABLE]]

The increase in total North American Motorized net sales of 12.8% compared to the prior fiscal year resulted from a 12.4% increase in unit shipments and a 0.4% increase in the overall net price per unit due to the combined impact of changes in product mix and price. The increase in unit shipments was primarily due to an increase in dealer and consumer demand compared to the demand in the prior fiscal year. According to statistics published by RVIA, for the twelve months ended July 31, 2026, combined motorhome wholesale unit shipments increased 6.8% compared to the same period ended July 31, 2025. According to statistics published by Stat Surveys, for the twelve-month periods ended June 30, 2026 and 2025, our retail market share for motorhomes was 48.5% and 47.8%, respectively.

The increase in the overall change in product mix and price per unit within the Class A product line of 4.1% 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 fiscal 2026. The increase in the overall net price per unit within the Class C product line of 2.1% was primarily due to product mix changes and selective selling price increases, and the Class B product line decrease of 1.6% was primarily due to product mix changes towards more moderately-priced Class B units compared to fiscal 2025.

North American Motorized cost of products sold increased $274,340 to $2,239,310, or 91.2% of North American Motorized net sales, for fiscal 2026 compared to $1,964,970, or 90.3% of North American Motorized net sales, for fiscal 2025. The changes in material, labor, freight-out and warranty costs comprised $255,278 of the $274,340 increase primarily due to the increased net sales. Material, labor, freight-out and warranty costs as a combined percentage of motorized net sales was 84.9% for fiscal 2026 compared to 84.1% for fiscal 2025, with the slight increase primarily due to a modest increase in the material cost percentage.

44

Total manufacturing overhead increased $19,062 in correlation with the increase in net sales and increased as a percentage of North American Motorized net sales slightly from 6.2% to 6.3%. Variable costs in manufacturing overhead increased $16,947 in fiscal 2026 compared to fiscal 2025 primarily in employee costs as a result of the increase in North American Motorized net sales.

The increase of $5,216 in North American Motorized gross profit for fiscal 2026 compared to fiscal 2025 was driven by the increase in North American Motorized net sales and the decrease in the gross profit percentage was due to the increase in the cost of products sold percentage noted above.

The increase of $5,289 in North American Motorized selling, general and administrative expenses in fiscal 2026 compared to fiscal 2025 was primarily due to the increase in North American Motorized net sales, which caused related commissions and other compensation to increase by the same $5,289. The decrease in the overall selling, general and administrative expense as a percentage of North American Motorized net sales was primarily due to the increase in North American Motorized net sales.

The decrease of $11,180 in North American Motorized income before income taxes for fiscal 2026 compared to fiscal 2025 was primarily due to the decrease in North American Motorized Other income, net of $12,890, which was primarily due to the insurance income recognized in fiscal 2025 related to the weather event discussed in Note 20 to the Consolidated Financial Statements.

45

European Recreational Vehicles

Analysis of Change in Net Sales for Fiscal 2026 vs. Fiscal 2025

[[GREPCENT_TABLE]]
[["","","Fiscal 2026","","% of Segment Net Sales","","Fiscal 2025","","% of Segment Net Sales","","Change Amount","","% Change"],["NET SALES:"],["European"],["Motorcaravan","","$","1,830,789","","","55.5","","","$","1,657,916","","","54.8","","","$","172,873","","","10.4"],["Campervan","","946,580","","","28.7","","","837,809","","","27.7","","","108,771","","","13.0"],["Caravan","","149,504","","","4.5","","","177,749","","","5.9","","","(28,245)","","","(15.9)"],["Other","","369,856","","","11.3","","","350,487","","","11.6","","","19,369","","","5.5"],["Total European","","$","3,296,729","","","100.0","","","$","3,023,961","","","100.0","","","$","272,768","","","9.0"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Fiscal 2026","","% of Segment Shipments","","Fiscal 2025","","% of Segment Shipments","","Change Amount","","% Change"],["# OF UNITS:"],["European"],["Motorcaravan","","23,189","","","50.8","","","21,787","","","49.0","","","1,402","","","6.4"],["Campervan","","16,397","","","35.9","","","15,440","","","34.7","","","957","","","6.2"],["Caravan","","6,037","","","13.3","","","7,218","","","16.3","","","(1,181)","","","(16.4)"],["Total European","","45,623","","","100.0","","","44,445","","","100.0","","","1,178","","","2.7"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["IMPACT OF CHANGES IN FOREIGN CURRENCY, PRODUCT MIX AND PRICE ON NET SALES:"],["","Foreign Currency %","","Mix and Price %","","% Change"],["European"],["Motorcaravan","","5.9","","","(1.9)","","","4.0"],["Campervan","","5.9","","","0.9","","","6.8"],["Caravan","","5.9","","","(5.4)","","","0.5"],["Total European","","5.9","","","0.4","","","6.3"]]
[[/GREPCENT_TABLE]]

The increase in total European Recreational Vehicle net sales of 9.0% compared to the prior fiscal year resulted from an increase of 2.7% in unit shipments and an increase of 6.3% in the overall net price per unit due to the total impact of changes in foreign currency, product mix and price. The increase in European Recreational Vehicle net sales of $272,768 includes an increase of $179,432, or 5.9% of the net 9.0% increase, due to the change in foreign exchange rates in fiscal 2026 compared to fiscal 2025. Sales on a constant-currency basis increased by 3.1%. According to the most recently published statistics from the ECF, our combined European market share for the twelve-month periods ended June 30, 2026 and 2025 was approximately 23.9% and 23.4%, respectively.

The overall net price per unit increase of 6.3% includes an increase of 5.9% due to the impact of foreign currency exchange rate changes and a constant-currency increase of 0.4% due to the combined impact of product mix and selling prices, primarily due to the slightly higher concentration of the generally higher-priced Motorcaravan sales.

The constant-currency decreases in the Motorcaravan product line of 1.9%, and the Caravan product line of 5.4% were primarily due to product mix, including a higher concentration of lower-priced entry-level and special-edition motorcaravan products in the current fiscal year.

46

European Recreational Vehicle cost of products sold increased $289,404 to $2,853,046, or 86.5% of European Recreational Vehicle net sales, for fiscal 2026 compared to $2,563,642, or 84.8% of European Recreational Vehicle net sales, for fiscal 2025. Changes in material, labor, freight-out and warranty costs comprised $273,250 of the $289,404 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 75.5% for fiscal 2026 compared to 73.4% for fiscal 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 have generally higher material cost percentages. The warranty cost percentage also increased slightly.

Total manufacturing overhead increased by $16,154 primarily due to the increase in European Recreational Vehicle net sales but decreased as a percentage of European Recreational Vehicle net sales from 11.4% to 11.0% as the sales increase resulted in lower overhead costs per unit sold.

The decrease of $16,636 in European Recreational Vehicle gross profit for fiscal 2026 compared to fiscal 2025 and the decrease in the gross profit percentage were both due to the increase in cost of products sold noted above.

The $21,367 increase in European Recreational Vehicle selling, general and administrative expenses for fiscal 2026 compared to fiscal 2025 was primarily due to an increase of $15,154 in administrative wages and benefits, which included an increase of $13,003 in employee separation costs related to strategic plant restructuring initiatives. In addition, sales wages and benefits increased $4,384 in correlation with the increase in European Recreational Vehicle net sales. The decrease in the overall selling, general and administrative expense as a percentage of European Recreational Vehicle net sales was primarily due to the increase in European Recreational Vehicle net sales.

The decrease of $29,393 in European Recreational Vehicle income before income taxes for fiscal 2026 compared to fiscal 2025 was primarily due to the decrease in gross profit combined with the increase in selling, general and administrative expenses as noted above partially offset by an increase in other income, net primarily due to a favorable change in foreign exchange rate gains of $5,778. The primary reason for the decrease in the percentage was the decrease in the gross profit percentage.

Liquidity and Capital Resources

As of July 31, 2026, we had $481,988 in cash and cash equivalents, of which $218,099 is held in the United States and the equivalent of $263,889, predominantly in Euros, is held in Europe, compared to $586,596 on July 31, 2025, of which $412,088 was held in the United States and the equivalent of $174,508, predominantly in Euros, was held in Europe. Cash and cash equivalents held internationally may be subject to foreign withholding taxes if repatriated to the United States. The components of the $104,608 decrease in cash and cash equivalents are described in more detail below, but the decrease was primarily attributable to cash provided by operating activities of $321,223 less cash used in investing activities of $125,443 and cash used in financing activities of $296,619.

Net working capital at July 31, 2026 was $1,189,831 compared to $1,193,279 at July 31, 2025. Capital expenditures of $152,387 for fiscal 2026 were made primarily for production building additions and improvements and replacing machinery and equipment used in the ordinary course of business.

We strive to maintain adequate cash balances to ensure we have sufficient resources to respond to opportunities and changing business conditions. In addition, the unused availability under our revolving asset-based credit facility is generally available to the Company for general operating purposes and approximated $815,000 at July 31, 2026. We believe our on-hand cash and cash equivalents and funds generated from operations, along with funds available under the revolving asset-based credit facility, will be sufficient to fund expected operational requirements for the foreseeable future.

Our priorities for the use of current and future available cash generated from operations remain consistent with our history, and include reducing our indebtedness, maintaining and, over time, growing our dividend payments and funding our growth, both organically and, opportunistically, through acquisitions. We may also consider strategic and opportunistic repurchases of shares of THOR stock under the share repurchase authorizations as discussed in Note 16 to the Consolidated Financial Statements, and special dividends based upon market and business conditions and excess cash availability, subject to potential customary limits and restrictions pursuant to our credit facilities, applicable legal limitations and determination by our Board of Directors ("Board"). We believe our on-hand cash and cash equivalents and funds generated from operations will be sufficient to fund expected cash dividend payments and share repurchases for the foreseeable future.

47

Our current estimate of committed and internally approved capital spend for fiscal 2027 is $175,000, primarily for certain building projects as well as replacing and upgrading machinery, equipment and other assets throughout our facilities to be used in the ordinary course of business. We anticipate approximately two-thirds will be in North America and one-third in Europe, and that these expenditures will be funded by cash provided by our operating activities.

The Board currently intends to continue regular quarterly cash dividend payments in the future. As is customary under credit facilities, certain actions, including our ability to pay dividends, are subject to the satisfaction of certain conditions prior to payment. The conditions for the payment of dividends under the existing debt facilities include a minimum level of adjusted excess cash availability and a fixed charge coverage ratio test, both as defined in the credit agreements. The declaration of future dividends and the establishment of the per share amounts, record dates and payment dates for any such future dividends are subject to the determination of the Board, and will be dependent upon future earnings, cash flows and other factors, in addition to compliance with any then-existing financing facilities.

Operating Activities

Net cash provided by operating activities for fiscal 2026 was $321,223 as compared to net cash provided by operating activities of $577,923 for fiscal 2025.

For fiscal 2026, net income adjusted for non-cash items (primarily depreciation, amortization of intangibles, deferred income tax expense, unrealized investment gains and stock-based compensation) provided $453,150 of operating cash. The change in net working capital resulted in the net use of $131,927 of operating cash during fiscal 2026, primarily due to an increase in our supply company inventory due to expanded product lines and to support current RV supply and part sales demand, and an increase in prepaid taxes as U.S. income tax payments in fiscal 2026 exceeded fiscal 2026 U.S. income tax provisions.

For fiscal 2025, net income adjusted for non-cash items (primarily depreciation, amortization of intangibles, deferred income tax benefit, unrealized investment gains and stock-based compensation) provided $510,906 of operating cash. The change in net working capital provided additional operating cash of $67,017 during fiscal 2025, primarily due to an increase in accounts payable from extending vendor payment terms on certain raw material purchases, partially offset by required income tax payments exceeding the income tax provisions for fiscal 2025.

Investing Activities

Net cash used in investing activities for fiscal 2026 was $125,443, primarily due to capital expenditures of $152,387 partially offset by proceeds from the dispositions of property, plant and equipment of $67,875 as well as $31,376 used for certain additional Corporate investments.

Net cash used in investing activities for fiscal 2025 was $64,465, primarily due to capital expenditures of $122,987 being partially offset by proceeds from the dispositions of property, plant and equipment of $63,305.

Financing Activities

Net cash used in financing activities for fiscal 2026 was $296,619, primarily for payments on the term-loan credit facilities of $56,264, regular quarterly dividend payments of $0.52 per share for each quarter of fiscal 2026 totaling $108,765 and an additional $115,126 used for treasury share repurchases.

Net cash used in financing activities for fiscal 2025 was $426,306, primarily for debt payments on the term-loan credit facilities of $205,000 and on other debt of $31,993 as well as regular quarterly dividend payments of $0.50 per share for each quarter of fiscal 2025 totaling $106,130, and $52,647 was used for treasury share repurchases.

The Company increased its previous regular quarterly dividend of $0.50 per share to $0.52 per share in October 2025.

48

Principal Contractual Obligations and Commercial Commitments

Our principal contractual obligations and commercial commitments at July 31, 2026 are summarized in the following tables. Unrecognized income tax benefits in the amount of $11,935 have been excluded from the table because we are unable to determine a reasonably reliable estimate of the timing of future payment. We have no other material off-balance sheet commitments.

[[GREPCENT_TABLE]]
[["","","Payments Due By Period"],["Contractual Obligations","","Total","","Fiscal 2027","","Fiscal 2028-2029","","Fiscal 2030-2031","","After 5 Years"],["Debt principal payments (1)","","$","875,768","","","$","2,814","","","$","11,370","","","$","859,033","","","$","2,551"],["Finance leases (2)","","$","940","","","$","896","","","$","44","","","$","\u2014","","","$","\u2014"],["Operating leases (2)","","$","52,220","","","$","15,756","","","$","18,769","","","$","6,515","","","$","11,180"],["Purchase obligations (3)","","$","243,510","","","$","243,510","","","$","\u2014","","","$","\u2014","","","$","\u2014"],["Total contractual cash obligations","","$","1,172,438","","","$","262,976","","","$","30,183","","","$","865,548","","","$","13,731"]]
[[/GREPCENT_TABLE]]

(1)See Note 12 to the Consolidated Financial Statements for additional information.

(2)See Note 15 to the Consolidated Financial Statements for additional information.

(3)These represent commitments to purchase specified quantities of raw materials at market prices. The dollar values above have been estimated based on July 31, 2026 market prices.

[[GREPCENT_TABLE]]
[["","","Total Amounts Committed","","Amount of Commitment Expiration Per Period"],["Other Commercial Commitments","","","Less ThanOne Year (1)","","1-3 Years","","4-5 Years","","Over 5 Years"],["Standby repurchase obligations (1)","","$","3,315,731","","","$","1,981,105","","","$","1,334,626","","","$","\u2014","","","$","\u2014"]]
[[/GREPCENT_TABLE]]

(1)The standby repurchase totals above do not consider any curtailments that lower the eventual repurchase obligation totals, and these obligations generally extend up to eighteen months from the date of sale of the related product to the dealer. In estimating the expiration of the standby repurchase obligations, we used inventory reports as of July 31, 2026 from our independent dealers’ primary lending institutions and made an assumption for obligations for inventory aged 0-12 months that it was financed evenly over the twelve-month period.

Application of Critical Accounting Estimates

See Note 1 to the Consolidated Financial Statements for further information on the Company’s significant accounting policies.

The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. We believe that of our accounting estimates, the following may involve a higher degree of judgment and complexity:

Goodwill, Intangible and Long-Lived Assets

Goodwill results from the excess of purchase price over the net assets of an acquired business. The Company’s reporting units are generally the same as its operating segments, which are identified in Note 2 to the Consolidated Financial Statements. Goodwill is not amortized but is tested for impairment annually as of May 31 of each fiscal year and whenever events or changes in circumstances indicate that an impairment may have occurred. The total carrying value of goodwill as of July 31, 2026 is $1,916,330. See Note 6 to the Consolidated Financial Statements for a summary of changes in carrying value by fiscal year and reportable segment. If the carrying amount of a reporting unit exceeds its fair value, an impairment charge equal to that excess is recognized, not to exceed the amount of goodwill allocated to the reporting unit. As part of the annual impairment testing, the Company may utilize a qualitative approach rather than a quantitative approach to determine if an impairment exists, considering various factors including industry changes, actual results as compared to forecasted results, or the timing of a recent acquisition, if applicable.

49

For the Company’s May 31, 2026 annual impairment test, multiple reporting units showed fair value exceeding carrying value by less than 25%. The aggregate value of goodwill in these reporting units is approximately 80% of the Company’s consolidated goodwill balance. Fair values are determined using discounted cash flow models, and these estimates are subject to significant management judgment, including the determination of many factors and inputs such as, but not limited to, sales growth rates, gross margin patterns, cost growth rates, terminal value assumptions and discount rates developed using market observable inputs and consideration of risk regarding future performance. Market multiples derived from selected guideline public companies are also utilized to evaluate the discounted cash flow models. Changes in any of these estimates can have a significant impact on the determination of fair value. Additionally, market data and factors outside the Company’s control, such as interest rates, dealer and end consumer demand, consumer preferences or unexpected competition could have a significant impact on estimated fair values. Changes in any of these estimates or other factors could potentially result in future material impairments in one or more of the Company’s reporting units.

The Company’s intangible assets are dealer networks, customer and user relationships, trademarks, design technology, developed technology and other intangible assets acquired in business acquisitions. Dealer networks are valued on a Discounted Cash Flow method and are amortized on an accelerated basis over 12 to 20 years, with amortization beginning after any applicable backlog amortization is completed. Customer and user relationships are valued based on the Replacement Cost method and are amortized on a straight-line basis over 2 to 4 years. Trademarks and design technology assets are both valued on a Relief of Royalty method and are both amortized on a straight-line basis, using lives of 15 to 25 years for trademarks and 10 to 15 years for design technology assets, respectively. Developed technology is valued based on a Discounted Cash Flow method and is amortized on a straight-line basis over 6 years. Amortizable intangible assets, net as of July 31, 2026 totaled $684,494. See Note 6 to the Consolidated Financial Statements for a summary of the components of that balance.

We review our tangible and intangible long-lived assets (individually or in a related group, as appropriate) for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable from future cash flows attributable to the assets. We continually assess whether events or changes in circumstances represent a "triggering" event that requires us to complete an impairment assessment. Factors that we consider in determining whether a triggering event has occurred include, among other things, whether there has been a significant adverse change in legal factors, business climate or competition related to the operation of the asset, whether there has been a significant decrease in actual or expected operating results related to the asset and whether there are current plans to sell or dispose of the asset. The determination of whether a triggering event has occurred is subject to significant management judgment, including at which point or fiscal quarter a triggering event has occurred when the relevant adverse factors persist over extended periods.

The Company completed its annual goodwill impairment test as of May 31, 2026, and no impairment was identified. See Note 6 to the Consolidated Financial Statements for further information regarding goodwill and intangible assets.

Product Warranty

We generally provide retail customers of our products with either a one-year or two-year warranty covering defects in material or workmanship, with longer warranties on certain structural components or other items. We record a liability, which totaled $273,724 at July 31, 2026, based on our best estimate of the amounts necessary to settle unpaid existing claims and estimated future claims on products sold as of the balance sheet date. Factors we use in estimating the warranty liability include a history of retail sold units, existing THOR units in dealer inventory, historical average costs per unit incurred and a profile of the distribution of warranty expenditures over the warranty period. A significant increase in service shop rates, the cost of parts or the frequency of claims could have a material adverse impact on our operating results for the period or periods in which such additional claims or costs materialize. Management believes that the warranty liability is appropriate; however, actual claims incurred could differ from estimates, requiring adjustments to the reserves.

Accounting Pronouncements

Reference is made to Note 1 to the Consolidated Financial Statements in this report for a summary of recently adopted accounting pronouncements, which summary is hereby incorporated by reference.

50