Dometic Group (DOM) Q4 2025 earnings summary

Executive summary

• Market conditions remain challenging with low consumer confidence, weak GDP growth, and cautious inventory building by retailers, dealers, and OEMs, though retail inventories and order intake are gradually improving.

• Net sales for Q4 2025 were SEK 4,058m, down 15% year-over-year, with organic decline of 3% and significant negative currency impact; full-year net sales were SEK 21,042m, a 15% decrease.

• Gross margin improved to 29.2% for the year (27.7% in 2024), driven by cost reductions and favorable sales mix, while EBITA margin remained stable at 10.6% despite lower sales and adverse currency effects.

• Free cash flow for Q4 was SEK 20m, lower than last year, and leverage increased to 3.3x from 3.1x; full-year free cash flow was SEK 1,445m.

• Profit for the year was SEK 428m, a turnaround from a SEK -2,303m loss in 2024.

Financial highlights

• Q4 organic growth was -3%, with a 12% negative FX impact and -1% from portfolio changes; Q4 EBITA before items affecting comparability was SEK 245m (6.0% margin), down from SEK 349m (7.3%).

• Full-year EBITA before items affecting comparability was SEK 2,234m (10.6% margin), down from SEK 2,670m (10.8%).

• EPS for Q4 was SEK -0.67 (adjusted SEK -0.39); for the year, SEK 1.34 (adjusted SEK 2.52).

• Gross margin improved to 29.2% for FY 2025 (27.7% in 2024).

• Net debt to EBITDA leverage ratio at year-end was 3.3x, up from 3.1x.

Outlook and guidance

• Gradual market stabilization and sequential improvement in net sales and order intake are observed, with management expecting a gradual demand recovery as inventory levels normalize.

• High focus on margin protection, working capital reduction, and leverage target around 2.5x, though timing is uncertain.

• Price increases in Mobile Cooling are expected to offset higher labor and tariff costs from Q1 2026.

• Growth focus is prioritized for 2026, with ambitions for low to mid single-digit growth and leverage reduction.

• Proposed dividend of SEK 1.00 per share for 2025, to be paid in two installments.