The rush to buy new cars and SUVs ahead of price hikes due to U.S. tariffs continued in May, though the momentum slowed compared to March and April. Automakers like Toyota, Ford, Honda, Hyundai, Kia and Volvo reported higher U.S. sales, while Subaru’s growth streak came to an end. According to MarkLines, U.S. auto sales in May 2025 totaled 1.46 million units, a 1.4% increase year over year, with a seasonally adjusted annual rate of 15.6 million.

Recreational vehicle maker Thor Industries (THO Quick QuoteTHO - Free Report) reported third-quarter fiscal 2025 results, while its peer Winnebago Industries (WGO Quick QuoteWGO - Free Report) announced preliminary fiscal third-quarter 2025 results. Auto equipment supplier Autoliv, Inc. (ALV Quick QuoteALV - Free Report) , during its Capital Markets Day, reaffirmed its strategic focus on organic growth, operational efficiency and shareholder returns. ALV’s peer, Oshkosh Corporation (OSK Quick QuoteOSK - Free Report) , unveiled a bold long-term growth strategy at its Investor Day, aiming to transform margins, boost innovation and enhance shareholder returns.

Last Week’s Top Stories

Thor reported earnings of $2.53 per share for the third quarter of fiscal 2025 (ended April 30), beating the Zacks Consensus Estimate of earnings of $1.79. The company reported earnings of $2.13 per share in the corresponding quarter of fiscal 2024. It registered revenues of $2.89 billion for the fiscal third quarter, beating the Zacks Consensus Estimate of $2.61 billion. The top line climbed 3.2% year over year.

As of April 30, 2025, Thor had cash and cash equivalents of $508.3 million and long-term debt of $1 billion.Thor projects its fiscal 2025 consolidated net sales in the range of $9-$9.5 billion, the same as the previously estimated range. The consolidated gross profit margin is expected to be in the band of 13.8-14.5%. EPS is expected to be in the range of $3.30-$4.

THO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Autoliv announced a hike in its third-quarter 2025 dividend by 21% to 85 cents per share. The dividend will be paid on Sept. 23 to shareholders on record as of Sept. 5. It also launched a new $2.5 billion stock buyback program effective July 2025 through 2029. Autoliv believes that the Mobility Safety Solutions business will be a key long-term growth driver, though its meaningful contribution is expected closer to 2030, with near-term growth driven by increasing safety content per vehicle and broader light vehicle production trends.

Autoliv maintained its 2025 guidance, expecting about 2% organic sales growth and an adjusted operating margin of 10-10.5%. Over the long term, Autoliv aims to grow organically by 4-6% annually, with medium-term targets of reaching a 12% adjusted operating margin. This will hinge on successfully executing strategic initiatives like automation, digitalization, and footprint optimization, and assumes a stable global light vehicle production base of at least 85 million units.

Winnebago expects third-quarter fiscal 2025 (ended May 31) net revenues of approximately $775 million and adjusted EPS between 75 cents and 85 cents. CEO Michael Happe noted that while the March selling season began with promise, macroeconomic uncertainty and weakened consumer sentiment led to softer demand and a more cautious dealer environment by quarter’s end. The company has responded by tightly managing inventory and aligning production with market conditions, particularly within its struggling Winnebago Motorhomes unit, which is expected to underperform in the second half of the fiscal year.

To improve profitability and long-term positioning, Winnebago has initiated cost-reduction strategies, adjusted headcount, and accelerated product value enhancements. Meanwhile, its Grand Design Towables brand is gaining market share and receiving strong reception for its new Lineage motorhome line. The Winnebago Towables revitalization and new product launches like the Thrive are on track, and Newmar’s Class A diesel share now exceeds 30%. The marine segment continues to perform well with Barletta and Chris-Craft gaining retail share.

Oshkosh targets $13-$14 billion in revenues and $18-$22 in adjusted EPS by 2028, with a 12–14% adjusted operating margin. Roughly half of the targeted revenue growth is backed by multi-year backlogs and contracts in its Vocational and Transport segments. The company is leveraging strong end-market demand and key industry trends to support its outlook, while margin expansion is expected to come from updated contracts, new product launches and efficiency gains through AI-driven automation.

Oshkosh is also working to build a more resilient portfolio by increasing contributions from the Vocational segment, strengthening its delivery vehicle business, and improving profitability in Transport with new pricing mechanisms. The company anticipates strong free cash flow as capital spending normalizes, and it remains focused on disciplined capital allocation. Oshkosh plans to return value to shareholders through dividends and share buybacks, with nearly 10 million shares still authorized for repurchase.

Price Performance

The following table shows the price movement of some of the major auto players over the past week and the six-month period.

Image Source: Zacks Investment Research

What's Next in the Auto Space?

Industry watchers will be closely monitoring China's May vehicle sales data, which will be released by the China Association of Automobile Manufacturers.