Dometic Group (DOM) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw net sales decline 11% year-over-year to SEK 5,830m, with organic growth at -10% amid challenging market conditions, tariffs, and cautious customer inventory behavior.

• EBITDA/EBITA margin before items affecting comparability was 10.4%, down from 11.8% year-over-year, with adjusted EPS at SEK 0.88.

• Free cash flow was negative at SEK -406m, reflecting seasonality, restructuring costs, and lower operating profit; leverage increased to 3.3x from 3.1x in Q4.

• All sales channels improved sequentially from Q4, but OEM remained weak as expected.

• Global restructuring program is progressing, with site closures, ongoing divestment activities, and SEK 100m run-rate savings achieved.

Financial highlights

• Net sales SEK 5,830m, down 11% year-over-year; organic growth -10%, portfolio changes -1%.

• EBITDA/EBITA before items affecting comparability SEK 606m (margin 10.4%), EPS SEK 0.57, adjusted EPS SEK 0.88.

• Gross margin improved to 28.7% (27.9%) due to favorable sales mix and cost reductions.

• Operating expenses down 3% in constant currency; net financial expenses reduced due to lower interest on loans.

• Free cash flow before M&A impacted by seasonality; working capital reduced by over SEK 1 billion LTM.

Outlook and guidance

• Gradual recovery expected in Service & Aftermarket and Distribution channels, with OEM improvements anticipated in the second half, subject to tariff clarity.

• High uncertainty remains due to trade wars, macroeconomic volatility, and tariff increases.

• Management remains confident in long-term performance improvement and is committed to a leverage target of ~2.5x, though timing is uncertain.