Q2 2025 Dometic Group AB (publ) Earnings Call Transcript
Key Points
- Dometic Group AB (DTCGF) reported a stabilization in order intake in Q2 compared to Q1, with a better backlog situation at the end of the quarter.
- The restructuring program introduced in December is running according to plan, contributing to improved efficiency and cost savings.
- Free cash flow remained strong at SEK1.3 billion, maintaining a leverage ratio of 3.3, similar to Q1.
- The company achieved a 1.3% improvement in gross margin, driven by sales mix and efficiency measures.
- Positive growth was observed in the land vehicles segment, particularly in the commercial part and residential products in Europe.
- Dometic Group AB (DTCGF) experienced an 11% negative organic growth in Q2, impacted by turbulent market conditions and low consumer confidence.
- Adjusted EPS decreased to SEK1.38 from SEK1.76 a year ago, reflecting lower profitability.
- The company faced production disruptions in KT, Texas, due to pollution in a foaming tank, affecting distribution.
- Tariff uncertainties and discussions continue to impact consumer and dealer sentiment, particularly in the American markets.
- The marine and adventure segments showed a decline in margins compared to the previous year.
Welcome to Dometic Q2 report 2025. Today I am pleased to present the CEO, Juan Vargas; and the CFO, Stephane Freestte. (Operator instructions)
Now I will hand the conference over to the speakers. Please go ahead.
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Good morning everybody and welcome to the quarterly report for the second quarter of 2025.
If we start immediately with the presentation. The turbulent market conditions and tariff uncertainties continue to have a negative impact on our numbers. We see that there is still today a low consumer confidence leading also to a negative sentiment among dealers, especially in the William channel.
And that leads also to a situation where retailers still are very careful in building up inventories.
We're looking at performance, our performance, and we end up the quarter showing a negative organic growth of 11%, with sering off the market down 12%.
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