Newsletter Subscription

A Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Rev Up Your Portfolio: 3 Hot RV Stocks to Watch in 2025

By: MarketBeat

December 30, 2024 at 09:38 AM EST

Photo of an RV against a mountainous background. The COVID-19 pandemic helped foster a new generation of recreational vehicle (RV) users to take advantage of the outdoor lifestyle. The good times for RV makers in the auto/tires/trucks sector seemed like they would stick around well after the pandemic re-opening. However, like most industries that gained during the pandemic, normalization inevitably set in.

Let's look at three leading RV stocks that each offer unique opportunities for bullish investors.

1. Thor Industries

The largest RV player, Thor Industries Inc. (NYSE: THO), sells gasoline, diesel, and hybrid vehicles such as campers, RVs, motorhomes and trailers under brands like Airstream, Crossroads, CruiserRV, DRV, Dutchman, Entegra, Heartland, Highland, Jayco, Keystone, KZ, Redwood, Starcraft RV, Thor Motor Coach, Tiffin and Venture RV.

The company's decentralized business model grants each brand autonomy and the ability to make decisions with agility and flexibility. This is also conducive to the acquisition strategy.

Losses Kick Off the Fiscal 2025

Thor reported a fiscal first-quarter 2025 EPS loss of three cents, widely missing consensus estimates for a profit of 71 cents by 74 cents. Revenues fell 14.3% year-over-year (YoY) to $2.14 billion, missing analyst estimates of $2.24 billion. The loss was due to the steep drop in higher-ticket motorized RV sales, which fell 29% YoY, leading to a 46.2% collapse in gross profit.

Due to its size, Thor has the most exposure during industry downturns. The soft retail and wholesale environment impacted the quarter and is expected to impact FQ2 2025 as well. The company continues to align production to sync with the current market environment while keeping dealer inventories from swelling too high.

Stronger Second Half 2025 Expected

Demand is expected to pick up in the second half of the fiscal year as the company estimates the retail market will start to trend positively by year's end. The company reaffirmed its fiscal full-year 2025 EPS guidance of $4.00 to $5.00 versus $4.75 consensus estimates. Fiscal full-year 2025 revenue is expected to be between $9 billion to $9.8 billion versus $9.63 billion consensus estimates. The company believes it is well-prepared to deliver strong performance as the market recovers.

2. Winnebago

Along with Thor, RV and marine products manufacturer Winnebago Industries Inc. (NYSE: WGO) suffered as the sluggish retail demand caused it to miss earnings expectations for the third straight quarter. Dealers are reluctant to commit to 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, too, expects a fiscal second-half 2025 market recovery.

Rounding Out The Sluggish RV Environment as Marine Revenue Saw Growth

Winnebago reported a fiscal first-quarter EPS loss of three cents, missing consensus analyst estimates by 22 cents. Revenues fell 18% YoY to $625.6 million, firmly missing consensus estimates of $677.29 million. Towables revenue fell 23.2% YoY to $254 million as adjusted EBITDA fell 59% to 13.6 million. Motorhome RV revenues fell 18.7% YoY to $271.7 million, with adjusted EBITDA down 87.5% YoY to $2.7 million. Marine net revenue rose 3.6% YoY to $90.5 million as adjusted EBITDA rose 16.7% to $8.4 million.

Reaffirming Fiscal 2025 Guidance

Winnebago expected full-year 2025 EPS between $3.10 to $4.50 versus $3.38 consensus estimates. Its fiscal full-year 2025 revenue is expected to be between $2.9 billion to $3.2 billion versus $2.99 billion consensus estimates.

The company has a little more diversification with its Marine products division, which actually grew 3.6% YoY in the quarter. Its adjusted EBITDA growth to $8.4 million outperformed its Motorhome RV segment, which generated just $2.7 million, triple the sales volume. The stock also has a 2.9% dividend yield.

3. REV Group

Specialty vehicle maker REV Group Inc. (NYSE: REVG) manufactures fire engine trucks, ambulances, transit buses, and RVs. The company operates two divisions: Specialty Vehicles and Recreation. Its Fire & Emergency business within the Specialty Vehicles division is experiencing strength, but its RV sales are struggling like Thor and Winnebago due to the sluggish retail climate. A key distinction among customers is that the Fire & Emergency division generates its revenues from much deeper-pocketed government agencies, municipalities and industrial customers. At the same time, RV sales are made to tight-fisted consumers.

Specialty Vehicles Carry the Torch, While RV Sales Plunge

The REV Group reported a fourth-quarter 2024 EPS of 51 cents, beating consensus estimates by two cents. Revenues fell 13.8% YoY to $597.9 million, falling short of $603.33 million.

The Specialty Vehicles division generated $439 million in revenues, which was a 3.6% YoY increase after backing out the Collins divestiture in Q4 2023. Increased shipments of fire apparatus and ambulance units drove the growth, with a backlog of $4.18 billion. Adjusted EBITDA rose 67.9% YoY to $50.2 million after backing out the Collins divestiture in Q4 2023.

The RV division saw a 26.5% YoY drop in revenue due to lower shipments and increased discounting. The backlog dropped to $291.5 million, down $93.7 million YoY. Adjusted EBITDA fell 57.6% YoY to $8.1 million in Q4 2024 due to lower shipments, inflationary pressures, and discounting partially offset by cost reduction actions. The RV segment generates 26% of total revenues.

About Us

Laser Focus World Membership

Magazine Subscription

Newsletter Subscription

The Daily Beam

Product Watch

Bio & Life Sciences Product Watch

Laser Processing Product Watch

Get Published!

Photonics Hot List

Following the Photons: A Photonics Podcast

Social Media

Meet the Laser Focus World Team

Editorial

Sales

Editorial Advisory Board