Dometic Group (DOM) Investor Update summary

Strategic restructuring and portfolio focus

• Announced a global restructuring program to reduce complexity, focus on high-margin growth areas, and streamline operations, including Mobile Power Solutions, Mobile Cooling, and Marine.

• Plan to divest or discontinue non-strategic, low-margin businesses with annual net sales of SEK 1.5–3 billion; discussions with buyers are ongoing and some deals are expected to close in the coming months.

• Exiting low-margin and non-strategic product categories, especially in Land Vehicles Americas and EMEA, and discontinuing certain product lines such as large compressor refrigerators for RVs, windows, hot & cooking products, generators, and low-margin camping equipment, impacting SEK 0.8 billion in net sales.

Operational and financial impact

• Restructuring will affect two manufacturing sites, five distribution centers, and approximately 500 employees, mainly in Land Vehicles Americas, EMEA, and Marine.

• Annual EBITA savings of SEK 750 million are expected when fully implemented within 24 months, with SEK 300 million realized in 2025 and full effect in 2026.

• Total restructuring charges of SEK 1.2 billion, with SEK 0.4 billion impacting cash flow, to be booked in Q4 2024 and cash impact in 2025.

Margin and leverage guidance

• Group EBITA margin target of 14% for 2027, with a longer-term goal of 18–19%, driven by cost reductions and business exits, assuming current market conditions.

• Committed to long-term financial targets and net debt leverage improvements, with progress expected in 2025 but not full achievement of the 2.5x net debt/EBITDA target without considering divestment effects.

• Divestments are expected to have a positive effect on net debt/EBITDA, but the exact impact depends on timing and transaction values.