The quarter fell just short of the earnings bar, despite higher year-over-year profit. Adjusted EPS was $2.70, below the published consensus of about $2.78, while reported sales declined 12.5% to $968.7 million. The tariff-refund pass-through makes the sales comparison unusually noisy: excluding it, adjusted sales were $1.06 billion, still down 4.5%. (Supplementary Information — Reconciliation of Non-GAAP Measures; Consolidated Results)
| Metric | Q2 2026 | Q2 2025 | Expectation / prior outlook |
|---|---|---|---|
| Net sales | $968.7M | $1,107.3M | — (Income Statement) |
| Adjusted net sales | $1,057.5M | $1,107.3M | — (Non-GAAP Measures) |
| Adjusted EPS | $2.70 | $2.39 | Published consensus: ~$2.78 (Adjusted EPS reconciliation) |
| Operating margin | 9.9% | 7.9% | — (Consolidated Results) |
| Full-year revenue outlook | $3.9B–$4.1B | — | Prior: $4.2B–$4.3B (Estimated Full Year Data; prior outlook) |
| Full-year adjusted EPS outlook | $8.25–$8.75 | — | Prior: $8.75–$9.25; published consensus: ~$8.95 (Estimated Full Year Data; prior outlook) |
The real reset is the guidance cut, not the headline EPS growth. The company lowered the revenue midpoint by $250 million and the adjusted-EPS midpoint by $0.50 versus its May outlook. The new EPS range also sits below the roughly $8.95 published full-year expectation. Keeping the 7.5%–8.0% operating-margin range intact softens the message, but it does not offset the lower expected sales and earnings base. (Estimated Full Year Data; prior outlook)
Margins genuinely improved, but a material portion of the quarter is not a clean demand recovery. Operating margin expanded 200 basis points to 9.9%, and adjusted EBITDA margin rose to 12.2% from 11.0%, helped by cost actions and the net benefit from IEEPA tariff refunds. Meanwhile, RV OEM sales dropped 33% and total OEM revenue fell 20%; lower North American trailer shipments and a shift toward lower-content single-axle trailers remain the core operating pressure. (Segment Results; Non-GAAP Measures)
Aftermarket strength and cash generation are the offsets, but they are not yet large enough to neutralize OEM weakness. Aftermarket sales rose 10% and its operating margin expanded to 17.7% from 13.5%, producing more than half of consolidated operating profit. Six-month operating cash flow rose to $170.2 million from $154.9 million, while debt fell to $852.6 million after repayment of the remaining 2026 convertible notes. Those are constructive execution markers, but the guidance reduction says management now expects the RV-demand drag to persist through the year. (Segment Results; Cash Flow Statement; Balance Sheet Data)
Read the original 8-K on SEC EDGAR ↗