Thule Group (THULE) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 reached SEK 3,403 million, up 9.8% year-over-year, with 1.5% organic growth and 14.2% from the Quad Lock acquisition, despite a challenging North American market.

• Growth was driven by new products, category launches, and the Quad Lock acquisition, which also improved gross margin.

• Gross margin improved to 46.3% from 44.4% last year, mainly due to Quad Lock's higher margin profile.

• Adjusted EBIT margin declined to 21.6% from 23.6% last year, impacted by higher product development costs and phasing of launches.

• Cash flow from operations was SEK 744 million, with continued focus on inventory reduction and supply chain efficiency.

Financial highlights

• Q2 net sales were SEK 3,403 million (+9.8%), with a negative currency effect of 5.9% and Quad Lock contributing 14.2% growth.

• Gross margin reached 46.3% (up from 44.4%); adjusted EBIT was SEK 734 million (margin 21.6%), with net profit at SEK 512 million.

• Cash flow from operations was SEK 744 million; inventory reduced by SEK 303 million in the quarter, on track for SEK 200 million annual reduction.

• CapEx for the quarter was SEK 58 million; dividend payment of SEK 448 million made.

• Net sales for the last twelve months reached SEK 10.1 billion, with EBIT at SEK 1.6 billion and an EBIT margin of 16.0%.

Outlook and guidance

• Market conditions remain challenging, especially in North America, with cautious consumers and retailers; no significant deterioration anticipated.

• Continued focus on product innovation, supply chain efficiency, and scaling new categories; confident in further improvement as the year progresses.

• Product development expenses expected to be around 7% of sales for the full year.

• Inventory reduction target of SEK 200 million in 2025 remains on track.

• No formal quantitative guidance provided, but management remains optimistic about long-term growth and margin improvement.