Thule Group (THULE) Q1 2025 earnings summary

Executive summary

• Q1 sales grew 10% year-over-year to SEK 2,662m, driven by new products and the Quad Lock acquisition, despite a weak North American market and cautious global sentiment.

• Organic growth was -3%, with North America down 13% and Europe flat; Quad Lock contributed over 20% sales growth and high margins.

• Gross margin reached a record 44.8%, supported by product mix, price increases, and Quad Lock integration.

• EBIT margin declined to 15.1% from 17.0% due to earlier phasing of product launch and development costs.

• Cash flow from operations was negative SEK 334m, reflecting seasonal working capital build-up.

Financial highlights

• Q1 revenue was SEK 2,662m, up 10% year-over-year; LTM revenue reached SEK 9.8b.

• Q1 EBIT was SEK 401m (down from SEK 412m last year); net income was SEK 266m.

• Gross margin improved to 44.8% (from 41.2%), mainly due to Quad Lock and price increases.

• Net debt increased, with net debt/EBITDA at 1.94 (company) and 1.5x (pro forma for Quad Lock); equity ratio at 51.5%.

• Net interest expense was SEK 49m; EPS at SEK 2.46 (2.83).

Outlook and guidance

• Weak North American market and global caution expected to persist.

• Focus remains on long-term growth, product innovation, DTC expansion, and supply chain efficiency.

• Inventory reduction target of SEK 200m for 2025 remains on track.

• Price increases in North America effective June 1, 2025, to offset tariff impacts.

• Additional product launches planned for Q2, including new dog harness and booster seat.