“Booking intakes for this market from key European countries in the past week have been approximately 40 to 50% down on last year’s levels,” the company said.
“There is no current indication that international bookings for USA rentals will improve before the start of the high season in June.
“Although domestic rental demand in the USA has increased slightly, this growth is not expected to materially offset the expected shortfall in international bookings.”
The company said that while other rental markets, including Canada, are experiencing some growth in rental demand, it won’t be able to cover the international bookings lost in the US for the reporting period.
THL said that Canada was already on track to operate near full utilisation during the high season, leaving minimal additional capacity for further bookings.
In some positive news, however, rental bookings are trending positively in markets outside the US for FY26, with year-on-year growth in all markets.
From a financial perspective, the company does not believe it needs to raise equity, and it is comfortable with its banking covenant position.
In the business 2025 interim financial results, chairwoman Cathy Quinn described the past year as “the most difficult period for the RV sales industry in decades”.
In its interim six-month result to December 31, 2024, the firm reported a statutory net profit after tax (npat) of $25.3 million, down 36% or $13.2m on the prior corresponding period.
However, total sales rose, with revenue increasing to $458.3m in 1H25, up from $449.1m in 1H24.
The core rental business has grown, with rental revenue increasing by 8% and the rental fleet expanding by 11%.
The firm reported underlying earnings before interest, tax and depreciation (ebitda) of $113.3m, down by 5%.
Ongoing vehicle sales challenges resulted in a 4% decrease in the sale of goods revenue and lower margins for ex-rental and retail RV sales.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
