Thule Group (THULE) Pre-close call summary

Executive summary

• Q4 showed sequential improvement with total growth of 20% excluding currency effects, mainly from acquisitions, while organic growth was flat but better than Q3.

• The RV market in Europe is recovering, with growth in both aftermarket and OE channels for the first time in two years.

• Entering 2026 with upgraded product lines, expanded digital presence, and efficiency initiatives to lower costs.

• Two strategic themes for 2026: building champion categories and driving efficiency gains and scale effects.

Trading performance and revenue trends

• North America remains a weaker geography, but actions taken in 2025 are driving gradual improvement.

• Quad Lock, the largest acquired category, grew 15% last year and continues to perform well.

• New product launches in Q1 and Q2 target both premium and entry-level segments, aiming to capture spring and summer demand.

• Modest price increases of 1%-2% implemented for 2026, with no further hikes currently planned.

Profitability and margins

• EBIT margin improved in Q4 and is expected to improve further in Q1 2026 due to cost reductions and stable gross margin.

• Gross margin gains from last year are being maintained despite FX and material cost headwinds.

• SG&A is expected to decrease versus Q1 last year, mainly from lower development costs.

• Entry-level products have similar profitability to premium products due to shared components and manufacturing lines.