Dometic Group (DOM) Q2 2026 earnings summary

Executive summary

• Organic sales declined 1% year-over-year in Q2 2026 amid persistent macro uncertainty, with net sales at SEK 5,969m, and continued headwinds from raw material inflation, tariffs, and weak consumer confidence, especially in the US.

• Service and aftermarket channels, as well as Marine and Mobile Cooling segments, showed positive single-digit growth, while OEM and Global Ventures declined, particularly in the Americas and APAC.

• EBITA margin before items affecting comparability fell to 12.4% from 14% last year, mainly due to higher raw material, freight, and SG&A costs, including a significant bad debt provision.

• Free cash flow was SEK 806m in Q2 2026, down from SEK 1,302m, impacted by high inventories, lower earnings, and restructuring-related factory moves.

• The global restructuring program was extended, incurring SEK 100m in Q2 costs and targeting SEK 150m in additional annual savings by mid-2027.

Financial highlights

• Q2 2026 net sales were SEK 5,969m (down 5% year-over-year); organic sales -1%, FX -3%, portfolio changes -1%.

• EBITA before items affecting comparability was SEK 739m, margin 12.4% (down from 14% last year).

• Adjusted EPS at SEK 1.27; free cash flow SEK 806m (vs. SEK 1,302m last year).

• H1 2026 net sales SEK 11,209m (down 7%), EBITA before items affecting comparability SEK 1,296m (margin 11.6% vs. 12.3% last year).

• Leverage at 3.3x net debt/EBITDA, unchanged year-over-year; net debt at SEK 9.3bn.

Outlook and guidance

• Market outlook remains cautious due to ongoing macroeconomic and geopolitical risks, high interest rates, and low consumer confidence, especially in the US and APAC.

• Price increases are starting to offset cost inflation, with margin improvements expected in H2 as price adjustments take effect.

• Major improvement in inventory expected in Q4 as factory closures are completed.

• Additional cost savings from restructuring to be realized mainly in 2027; further measures may be considered if market weakness persists.

• Long-term fundamentals for mobile living remain attractive.