Thule Group (THULE) Investor Update summary

Financial performance and market conditions

• Q3 sales reached SEK 2.5 billion, up 13% excluding currency effects, but organic growth was negative at -4% due to cautious consumer and retailer behavior, especially for seasonal products at quarter-end.

• EBIT margin increased slightly in Q3 to 17.9%, supported by higher gross margin and lower SG&A (excluding Quad Lock), but year-to-date EBIT margin is 18.5%, down from 19.8% last year due to higher costs in H1.

• Year-to-date sales for 2025 were SEK 8.5bn, up 13% year-over-year excluding currency effects, with LTM Q3 2025 net sales at SEK 10.3bn and EBIT SEK 1.7bn, EBIT margin 16.1%.

• Regional performance varied: Europe was flat in organic growth, North America was down 7%, and the rest of the world was down 2% but improved in Q3.

• Q4 is the smallest quarter, with low sales and operating income, and market conditions remain similar to Q3, with the US more challenging than Europe.

Market conditions and growth drivers

• Consumer and retailer caution led to a weak end to the spring/summer season, with seasonal product destocking by retailers at Q3-end continuing into early Q4, then stabilizing as winter began.

• Growth was driven by new products and categories, including the acquired Quad Lock, dog transportation, and car seats.

• Inventory was reduced by SEK 1.5bn from 2023 to 2025, freeing up capital, with a SEK 200 million reduction targeted for the year.

• Price increases of around 1.5% were implemented for the year, with slightly higher increases in North America to offset tariff effects.

• Adjustments to operating income included SEK 100m in Q4 2024 for Quad Lock acquisition and SEK 31m in Q2 2025 for North America restructuring.

Strategic priorities and targets

• New long-term financial targets: annual organic growth at or above 7%, EBIT margin of 20%, and dividend payout ratio at or above 75%, with targets to be achieved in 2–4 years.

• Focus on building and expanding champion product categories, aiming to grow from six to ten by 2035, leveraging R&D and innovation.

• Efficiency gains and cost actions continue, with increased focus and spend on champion categories and supply chain improvements.

• Product launch calendar for 2026 is aligned with champion category strategy, including launches in existing and candidate categories, and efforts to revitalize the bags category.

• Sustainability targets remain unchanged.