Best RV Stocks of 2025: THO, WGO and REVG News ad

The COVID-19 pandemic has helped a new generation of recreational vehicle (RV) users reap the benefits of an outdoor lifestyle. Good times for motorhome manufacturers in car/tire/truck sector they seemed likely to remain long after the pandemic resumed. However, like most industries that benefited during the pandemic, normalization was inevitable.

Let’s take a look at three leading RV stocks, each offering unique opportunities for bullish investors.

1. Thor Industries

The biggest player on wheels, Thor Industries Inc. NEW YORK: DEATHsells gasoline, diesel and hybrid vehicles such as campers, motorhomes, motorhomes and trailers under brands such as Airstream, Crossroads, CruiserRV, DRV, Dutchman, Entegra, Heartland, Highland, Jayco, Keystone, KZ, Redwood, Starcraft RV, Thor Motor. Coach, Tiffin and Venture R.V.

The company’s decentralized business model gives each brand autonomy and the ability to make decisions quickly and flexibly. This also contributes to acquisition strategy.

Losses will begin in fiscal year 2025

Thor reported a first-quarter fiscal 2025 loss per share of three cents, missing consensus earnings estimates of 71 cents by 74 cents. Revenue fell 14.3% year-on-year to $2.14 billion, missing analysts’ estimates of $2.24 billion. The loss came as sales of high-end motorized mobile homes fell 29% year-on-year. led to a 46.2% drop in gross profit.

Due to its size, Thor is most vulnerable during industry downturns. The retail and wholesale trade environment impacted this quarter and is expected to impact the second quarter of 2025 as well. The company continues to align production with current market conditions while avoiding excessive inventory build-up at dealers.

Stronger second half of 2025 expected

Demand is expected to pick up in the second half of the financial year as the company estimates that the retail market will begin to trend positively towards the end of the year. The company reiterated its full-year 2025 earnings guidance of $4.00 to $5.00, versus consensus estimates of $4.75. Full-year fiscal 2025 revenue is expected to be between $9 billion and $9.8 billion, versus the consensus estimate of $9.63 billion. The company believes it is well positioned to deliver strong results as the market recovers.

2. Winnebago

Together with Thor, manufacturer of motorhomes and marine products Winnebago Industries Inc. New York Stock Exchange: WHO suffered as sluggish retail demand caused the company to miss profit expectations for the third straight quarter. Dealers are reluctant to take on new orders, especially ahead of the seasonally slow winter period. Winnebago is focused on effective cost management, disciplined production and targeted investments in new products and technologies. The company also expects the market to recover in the second half of fiscal 2025.

Addressing sluggish RV environment as maritime revenues rise

Winnebago reported a fiscal first-quarter EPS loss of three cents, missing analysts’ consensus estimates by 22 cents. Revenue fell 18% YoY to $625.6 million, well below consensus estimates of $677.29 million. Towables revenue fell 23.2% YoY to $254 million and adjusted EBITDA fell 59% to 13 .6 million dollars. Motorhome RV revenue fell 18.7% YoY to $271.7 million and adjusted EBITDA fell 87.5% YoY to $2.7 million. Marine net revenue rose 3.6% YoY to $90.5 million, and adjusted EBITDA grew 16.7% to $8.4 million.

Confirmation of forecast for fiscal year 2025

Winnebago expected full-year 2025 earnings per share of $3.10 to $4.50, versus consensus estimates of $3.38. The company’s full-year 2025 revenue is expected to be between $2.9 billion and $3.2 billion, versus consensus estimates of $2.99 ​​billion.

The company has slightly more diversification in its marine products division, which actually grew 3.6% YoY in the quarter. Adjusted EBITDA growth to $8.4 million outpaced the motorhome segment, which generated just $2.7 million, or three times sales. The stock’s dividend yield is also 2.9%.

3. REV Group

Specialized car manufacturer REV Group Inc. New York Stock Exchange: REVG manufactures fire trucks, ambulances, transit buses and mobile homes. The company operates two divisions: specialty vehicles and recreational vehicles. Its fire and emergency response business in its specialty vehicles division is growing strong, but RV sales are struggling like Thor and Winnebago due to a sluggish retail climate. A key difference among clients is that the fire and emergency division gets its revenue from much wealthier government agencies, municipalities and industrial customers. At the same time, sales of motorhomes are aimed at tight-fisted consumers.

Specialty vehicles carry the torch as RV sales fall

REV Group reported fourth-quarter 2024 earnings per share of 51 cents, beating the consensus estimate by two cents. Revenue fell 13.8% YoY to $597.9 million, missing $603.33 million.

The specialty vehicles division reported revenue of $439 million, up 3.6% year-over-year, following the divestment of Collins in the fourth quarter of 2023. Increased shipments of fire equipment and ambulances contributed to the growth, with the backlog totaling $4.18 billion. Adjusted EBITDA rose 67.9% YoY to $50.2 million following the abandonment of the sale of Collins assets in the fourth quarter of 2023.

The motorhome division’s revenue fell 26.5% year over year due to lower supplies and increased discounting. The backlog narrowed to $291.5 million, down $93.7 million from the same period last year. Adjusted EBITDA fell 57.6% YoY to $8.1 million in the fourth quarter of 2024 due to lower supplies, inflationary pressures and discounting, partially offset by cost-cutting actions. The RV segment generates 26% of total revenue.

Before you consider THOR Industries, you might want to hear this.

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While THOR Industries currently has an analyst rating of Hold, the top-ranked analysts think these five stocks are Strong Buys.

View five stocks here