Second quarter
- Net sales for the quarter amounted to SEK 3,403m (3,099), corresponding to an increase of 9.8 percent, of which 1.5 percent from organic growth, 14.2 percent from the acquisition of Quad Lock and -5.9 percent from currency effects.
- The gross margin for the quarter increased to 46.3 percent (44.4).
- Adjusted operating income for the quarter amounted to SEK 734m (732), corresponding to a margin of 21.6 percent (23.6)*
- Net income for the quarter was SEK 512m (559).
- Earnings per share before dilution amounted to SEK 4.75 (5.28).
- Cash flow from operating activities totaled SEK 744m (879) for the quarter.
*Adjusted operating income. An adjustment of SEK 31m was made to operating income in connection with the restructuring of the North American operations in the second quarter of 2025. In the fourth quarter of 2024, an adjustment of SEK 100m was made to operating income in relation to transaction costs related to the Quad Lock acquisition.
CEO's STATEMENT
Thule grows in a tough market
In the second quarter sales increased by 16 percent, excluding negative currency effects, in a continued weak market. Growth is driven by new products and categories, which is clear confirmation that the high launch pace during this year has paid off. Despite substantial investments in product development, which impact short-term profitability, operating income was unchanged compared to last year. We are continuing on our chosen path toward a larger, more profitable Thule.
Market conditions in the second quarter remained challenging, particularly in North America, where consumer behavior was restrained and retailers were cautious about building up inventory levels. Sales in the second quarter increased by 16 percent, excluding negative currency effects, with organic growth at 1.5 percent. In Europe, organic sales increased by 3.5 percent. In RV Products, where sales are mainly in Europe, we countered the headwinds in the RV market and posted organic growth of 4 percent.
In North America, where the first quarter sales development was very weak, the measures we have implemented have started to pay off and organic sales only decreased by 3.3 percent in the second quarter. The acquired Quad Lock continued to perform well. Thule has once again proven that growth is possible even in a tough market.
The gross margin for the second quarter increased to 46.3 percent (44.4). The increase was attributable to the acquired Quad Lock business, which has a higher gross margin. As previously communicated, more products are being launched earlier this year, resulting in higher product development costs for the first half of the year. The aim is to benefit from sales over the full high season, as the positive sales figures clearly show. Even with these investments phased earlier in the year, adjusted EBIT amounted to SEK 734m (732), corresponding to an EBIT margin of 21.6 percent (23.6).
In addition to our financial targets; we also have ambitious sustainability targets. Agreements signed by Thule with our banks during the quarter now clearly link these sustainability targets to the terms in our financing, thereby providing an additional incentive to pursue forward-looking sustainability work in all areas.
New products and categories are driving growth
2025 is one of our most intensive product launch years to date. We completed several important product launches in the first quarter, and continued in the second quarter with launches, such as Thule Outpace, a lightweight and compact bike carrier that uses little space when not in use, and an updated version of Thule Glide, our award-winning jogging stroller. New products clearly generate growth, particularly in areas where we hold strong market positions and our brand has high recognition.
Beyond our initiatives to strengthen existing market positions, we are also further developing our new categories of dog transportation and child car seats. The dog transportation category made an excellent start last year and growth remained strong in the first half of the year. Thule Cappy, a crash-tested dog car harness, was launched in June to a warm reception. In the car seat category, we will launch Thule Palm later this year, a high back booster seat with back and neck support for slightly older children. The launch of Thule Palm means we will have a range of car seats to fit all ages.
Toward the end of last year, we added an additional category through the acquisition of Quad Lock, the global market leader in performance phone mounts for cyclists, motorcyclists and other adventurers. Quad Lock has performed strongly in its first seven months as part of Thule with organic sales growth of more than 15 percent in the second quarter and with many further growth opportunities to address.
We have once again been recognized for our product design and in the second quarter we won ten design awards at the internationally recognized Red Dot Award competition. This adds to the previous year's seven awards from the IF Design Awards and again confirms the strength of Thule's ability to develop world-class products.
Changes made in North America are paying off
We recently launched a new organization in North America. The structure was streamlined and North America as a region has been given more focus in terms of both product development and sales. In June, we increased prices to offset the effect of the US tariffs.
We have launched a number of bike carriers specifically designed for the US market. The result has been very good and makes the difference between the weak sales development in the first quarter and the clearly better trend in the second. Demand was so strong that our Connecticut factory has had to work hard to rapidly increase production capacity. The ability to launch in-demand products in an otherwise weak market shows the strength of Thule's product development capability. Our renewed focus on pick-up trucks will also come to market later this year, a category in which we have not launched any new products for many years. This winter we will launch Thule Xscape, an easy-to-assemble premium product enabling safe transportation of skis, surfboards, rooftop tents, and other equipment on pick-up trucks. While the North American market will take time to recover, a sharpened product portfolio and a more focused sales organization mean we are well on our way to building a stronger North America.
I have been struck by how our success in US bike carriers is a clear example of how we are implementing our strategy. We call our strategy "Big in pockets, united by the Thule brand." We want to be market leaders - big - in small niches. The niches, or pockets, must be a good fit with our brand and our capabilities, and the products must appeal to enthusiasts who are willing to pay for premium products. And when we then add the ingredient of innovation, the results come quickly. Many opportunities remain in the categories where we are already market leaders, and therefore we have every opportunity to shape our own future.
Enhanced supply chain efficiency
We are continuously improving the efficiency of our supply chain and, in the last two years, we have freed up SEK 1.2 billion in inventory, helping to finance growth initiatives. Our next major improvement is to expand and automate the existing logistics facility in Huta, Poland. The facility will have three times as many pallet spaces in a highly automated warehouse. Increasing capacity in Huta means that we can end our collaboration with two external logistics providers. The investment, which will lead to annual savings of some SEK 100m before depreciation, amounts to approximately SEK 450m. This investment is part of our investment program, which is planned, over time, to correspond to about 2.5 to 3 percent of sales. The facility is expected to be in operation in 2027 and will provide us with increased flexibility, control and significant savings over the long term.
Long-term investments continue
Thule is well-positioned even in a tough market. We are global market leaders in our most important product categories, we sell premium products to enthusiasts who are willing to pay, we have world-leading innovation skills, our own manufacturing in Europe and North America, and a financial position that allows us to invest for the long term.
In the short term, we expect the market to remain challenging, particularly in North America. While growth costs a little more in a challenging market, it remains the most effective strategy to generate results. Moreover, with more successful products and categories, we will have an even greater upside once the market recovers. We are continuing to invest long-term in areas that create value for Thule: product development; success in more product categories; increased consumer visibility; and increased efficiency in the supply chain.
We are now in the middle of the summer season, with high activity levels for consumers, customers and in our factories. We have many product launches ahead of us and more product categories to develop, and I am very much looking forward to another eventful year in 2025!
Mattias Ankarberg
CEO and President
Contacts
Toby Lawton
CFO
Phone: +46 70 242 29 47
Email: toby.lawton@thule.com
Catharina Paulcén
SVP Corporate Communications and Investor Relations
Phone:+46 73 665 45 74
Email: Catharina.Paulcen@thule.com
About Thule Group
Thule is a global sports and outdoor company. We offer high-quality products with smart features and a sustainable design that make it easy for people across the globe to live an active life. Under the motto Bring your Life- and with a focus on consumer-driven innovation and long-term sustainability - we develop, manufacture and market products within the product categories Sport & Cargo Carriers (roof racks, roof boxes and carriers for transporting cycling, water and winter sports equipment, and rooftop tents mounted on a car), Active with Kids & Dogs (car seats, strollers, bike trailers, child bike seats and dog transport), RV Products (awnings, bike carriers and tents for RVs and caravans) and Bags & Mounts (backpacks, luggage and performance mounts).
Thule Group has about 2,800 employees at nine production facilities and 35 sales offices worldwide. The Group's products are sold in 138 markets and in 2024, sales amounted to SEK 9.5 billion.
www.thulegroup.com
This information is information that Thule Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-07-15 07:45 CEST.
