Dometic Group (DOM) Q1 2026 earnings summary

Executive summary

• Q1 ended the negative organic growth trend with 0% organic sales growth, improved gross and EBITA margins, and strong order intake and backlog, especially in Service & Aftermarket, which grew 5%.

• Geopolitical tensions, high oil prices, and inflationary pressures continue to impact consumer confidence, particularly in the Americas and Middle East.

• Restructuring and cost-saving programs are delivering margin improvements, with SEK 400 million annual run-rate savings achieved and a target of SEK 750 million by end of 2026.

• Strategic investments in product development and marketing continue, with new launches in Mobile Cooling, Marine, rooftop tents, and modular drinkware.

• Dividend proposal was withdrawn in March 2026 to maintain financial flexibility amid ongoing uncertainties.

Financial highlights

• Net sales for Q1 2026 were SEK 5,239 million, down 10% year-over-year, mainly due to currency effects; organic growth was flat, FX -9%, and portfolio changes -1%.

• EBITA before items affecting comparability was SEK 557 million, down 8% year-over-year, but margin improved to 10.6% from 10.4%.

• Adjusted EPS was SEK 0.86 (0.88 last year); free cash flow improved to SEK -192 million from SEK -406 million last year.

• Gross margin rose to 29.6% from 28.7% year-over-year, driven by sales mix and restructuring benefits.

• Working capital/net sales improved to 25–26%, and inventory days fell to 121 from 131.

Outlook and guidance

• Management maintains the assumption of achieving positive organic growth in 2026, but risk level remains elevated due to geopolitical uncertainty and changing tariffs.

• Order intake and backlog are strong entering Q2, with momentum in higher-margin segments.

• SG&A costs expected to remain elevated for 1–2 more quarters due to product launches and B2C marketing, then normalize.

• Leverage ratio expected to decline in Q2 and Q3 as cash flow improves, but not likely to reach the 2.5x target in 2026.

• Continued investments in structural growth areas and product innovation.