Dometic Group: Interim report second quarter 2026

CEO COMMENT

We delivered a stable second quarter despite challenging market conditions and weaker consumer confidence, particularly in the U.S. In this environment, we focus on factors within our control: growing our Service & Aftermarket business, executing our Global restructuring program, offsetting cost inflation through price adjustments, investing in product innovation and generating cash flow to reduce net debt.

Organic net sales were broadly stable year-on-year despite continued weak market conditions, declining by -1% during the quarter. Net sales amounted to SEK 5,969 m (6,269), with organic growth in the Marine and Mobile Cooling segments. The gross margin was 30.1% (29.7), supported by a favorable sales mix as a result of continued growth in the higher-margin Service & Aftermarket sales channel and restructuring program savings. The tariff refunds reported in the quarter offset a large part of the tariff costs in the quarter.

EBITA amounted to SEK 739 m (877) excluding items affecting comparability, corresponding to a margin of 12.4% (14.0%). Earnings were impacted by a SEK -52 m bad debt expense related to the Chapter 11 filing of West Marine, and by higher direct material and freight prices.

Free cash flow decreased to SEK 806 m (1,302), mainly due to higher inventory levels than last year driven by lower demand and inventory build-up to manage the ongoing Global restructuring program, and lower earnings. The net debt to EBITDA leverage ratio remained unchanged at 3.3x at quarter-end. Reducing debt and leverage remains a key priority as we work towards our long-term Net debt to EBITDA leverage target of around 2.5x.

Product leadership through innovation is a key pillar of our strategy, and we continue to invest in innovation and brand awareness. In the U.S., we launched a major brand campaign showcasing our product portfolio to key media and social media content creators, generating strong coverage in leading lifestyle media. We also expanded our range of Dometic coolers and drinkware, as well as water heaters and cooking solutions.

Demand remained volatile during the quarter and market conditions developed weaker than anticipated at the beginning of the season. In the U.S., recreational vehicle production declined by double digits and boat registrations were down by mid-single digits. In Europe, the increase in recreational vehicle registrations during the first quarter was followed by a double-digit decline in the second quarter. While overall market conditions were challenging, there were some encouraging signs toward the end of the quarter. Price adjustments implemented to offset input-cost inflation began to take effect, order intake improved in June but was slightly lower for the quarter as a whole and the order book remained on par with the prior year.

To adapt to continued weak demand, particularly in the RV market in the Americas, we decided to extend the ongoing Global restructuring program. The additional measures, mainly affecting the Land Vehicles segment and including selective reductions in SG&A costs across the company, are expected to generate annual run-rate savings of SEK 150 m once fully implemented by mid-2027. The extension entails restructuring costs of SEK -100 m, recognized as items affecting comparability in the second quarter. The ongoing program continues according to plan, with another SEK 90 m of annual run-rate savings realized during the second quarter. Depending on market development in the coming months, further measures may be taken. The challenging environment is also creating movement in the RV industry in the US. We see a development towards new partnerships and increased consolidation that could generate strategic opportunities for Dometic.

Geopolitical developments in the Middle East have renewed uncertainty and caution among consumers, affecting both dealers and OEM manufacturers. Input cost inflation driven by higher direct material prices and import tariffs adds to existing affordability challenges. Given the elevated uncertainty, we remain focused on what we can control, including executing the Global restructuring program and advancing our strategic agenda.

The long-term fundamentals of the Mobile Living industry remain attractive. Thanks to the dedication of our employees worldwide, we are confident in our ability to create long-term value for all stakeholders and to continue strengthening our business to position ourselves well for the future.

Juan Vargues, President and CEO

 

PRESENTATION OF THE REPORT

Analysts and media are invited to participate in a combined telephone webcast conference at 10.00 (CEST), July 14, 2026, during which President and CEO, Juan Vargues and Interim CFO Per Carlsson, will present the report and answer questions. To participate in the webcast/telephone conference, please dial five minutes prior to the start of the conference call. The webcast presentation will be available at www.dometicgroup.com.

Webcast link:
https://dometic.videosync.fi/2026-07-14-q2-2026

TO PARTICIPATE IN CONFERENCE CALL TO ASK QUESTIONS

Those who wish to participate in the conference call to ask questions in connection with the webcast are welcome to register on the link below. After the registration you will be provided with phone numbers and a conference ID to access the conference.

Registration link: 
https://service.flikmedia.se/teleconference/?id=5001729

This information is information that Dometic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CEST on July 14, 2026.