CONTINUED UNDERLYING MARGIN IMPROVEMENT IN A CHALLENGING MARKET
FOURTH QUARTER 2025
- Net sales were SEK 4,058 m (4,785); a decrease of -15%, of which -12% was currency translation and -3% organic growth.
- Operating profit (EBITA) before items affecting comparability was SEK 245 m (349 incl. a one-time positive effect of
SEK 63 m), corresponding to a margin of 6.0% (7.3% or 6.0% excluding the one-time positive effect). - Operating profit (EBIT) was SEK 117 m (-964), corresponding to a margin of 2.9% (-20.1%).
- Profit for the quarter was SEK -214 m (-1,098).
- Earnings per share were SEK -0.67 (-3.44). Adjusted earnings per share were SEK -0.39 (-0.35).
- Free cash flow was SEK 20 m (409). Cash flow was SEK -2,116 m (379).
- The Board of Directors proposes a dividend of SEK 1.00 (1.30) per share for 2025, which is to be paid in two installments, SEK 0.50 in April and SEK 0.50 in October.
CEO COMMENT
In 2025, we continued to show resilience by adjusting our capacity while also investing in our customer offering, despite a market environment marked by weak consumer spending and cautious behavior among dealers and retailers. We delivered solid full-year results: the gross margin improved to 29.2 percent (27.7) and the EBITA margin¹ remained stable at 10.6 percent (10.8). This was achieved even as currency effects became increasingly unfavorable toward year end and organic net sales declined by -8 percent due to market conditions. Free cash flow remained solid, totaling SEK 1,445 m for the year, enabling a further reduction in net debt.
Net sales for the fourth quarter, seasonally the smallest quarter for both net sales and earnings, amounted to SEK 4,058 m (4,785), corresponding to an organic net sales decline of -3 percent. Although customer behavior remained cautious, net sales improved sequentially during the quarter, and the rate of decline moderated over the year, signaling gradual market stabilization. In the Service & Aftermarket sales channel, net sales in Land Vehicles EMEA increased and the Marine segment was stable, and total Service & Aftermarket sales channel declined organically by -3 percent. The Distribution sales channel delivered 2 percent organic growth, primarily driven by the Mobile Cooling segment. The OEM sales channel declined by -4 percent, with a stable development in Land Vehicles EMEA offset by declines in Land Vehicles Americas and Marine.
The gross margin for the fourth quarter increased to 28.7 percent (26.8), supported by cost reductions and a favorable sales mix. EBITA amounted to SEK 245 m (349), corresponding to a margin of 6.0 percent (7.3). Underlying EBITA margin performance however, improved by approximately 2.9 percentage points year-over-year, primarily driven by efficiency gains from the Global Restructuring Program. EBITA was negatively affected by several items, including a significant USD-related currency impact. As previously communicated, the Mobile Cooling segment had higher labor costs and operational inefficiencies due to government-mandated wage increases and limited availability of seasonal temporary workers, as well as negative impact due to the timing of tariff-mitigation measures. In addition, the prior year's fourth quarter benefited from a one-time positive effect of SEK 63 m in the Mobile Cooling Segment. Both the Land Vehicles and Global Ventures segments delivered improvements in EBITA and EBITA margin. The labor- and tariff-related headwinds in the Mobile Cooling segment have been normalized as of the start of the new year.
Free cash flow was lower in the fourth quarter as we increased inventory in response to higher order intake and receivables were higher as net sales were recorded later in the quarter compared with the prior year. The net debt to EBITDA leverage ratio was 3.3x (3.1) at year-end. We maintain a strict focus on earnings and cash flow to continue reducing debt and leverage, working towards our long-term target of around 2.5x. The Board of Directors has decided to propose a dividend of SEK?1.00 per share for 2025, to be paid in two installments, SEK?0.50 in April 2026 and SEK?0.50 in October 2026, to better align with Dometic's cash flow profile. The proposed dividend corresponds to a pay-out ratio of 40%, in line with the Group's policy.
We remain encouraged by continued improvements in order intake and backlog and expect a gradual demand recovery given current visibility on inventory levels. As we approach the bottom of the demand cycle, we continue to reduce costs and increase efficiency while also investing in growth initiatives, driven by new product development and strengthened sales capabilities. Our product lineup is strong, and we are pleased to see the positive customer reception and orders generated from recent launches, including the award winning Dometic Recon series of mobile cooling products and the Dometic DG3 Gyro boat stabilizer, among others. In addition, we continue to advance our ESG agenda, highlighted by progress in the product innovation index, among other areas, as we introduce new products with lower climate impact.
Long-term trends in the Mobile Living industry remain strong, and we will continue to relentlessly drive our strategic agenda. The Global Restructuring Program proceeds as planned, and thanks to the continued efforts and dedication of our employees worldwide, we are placing Dometic in a strong position to deliver on our targets while providing the highest quality of services and products to our customers.
Juan Vargues, President and CEO
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a combined telephone webcast conference at 10.00 (CEST), January 28, 2026, during which President and CEO, Juan Vargues and CFO, Stefan Fristedt, will present the report and answer questions. To participate in the webcast/telephone conference, please dial five minutes prior to the start of the conference call. The webcast presentation will be available at www.dometicgroup.com.
Webcast link:
https://dometic.videosync.fi/2026-01-28-q4-2025
TO PARTICIPATE IN CONFERENCE CALL TO ASK QUESTIONS
Those who wish to participate in the conference call to ask questions in connection with the webcast are welcome to register on the link below. After the registration you will be provided with phone numbers and a conference ID to access the conference.
Registration link:
https://service.flikmedia.se/teleconference/?id=5005927
FOR FURTHER INFORMATION, PLEASE CONTACT
Tobias Norrby
Head of Investor Relations
E-mail: tobias.norrby@dometic.com
Tel. +46 706 647335
This disclosure contains information that Dometic Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 28-01-2026 07:30 CET.
For further information, please contact
Tobias Norrby, Head of Investor Relations
Phone: +46 706 647335
Email: tobias.norrby@dometic.com
Dometic is a global outdoor tech company on a mission to make mobile living easy. Leveraging our core expertise in cooling, heating, power & electronics, mobility, and space optimization, we empower more people to connect with nature and elevate their sense of freedom in the outdoors. We achieve this by creating smart, sustainable, and reliable products with outstanding design. Millions of people around the world use our products while camping and exploring nature with their cars, RVs, or boats. Our range of offerings includes installed products for land vehicles and boats, as well as standalone solutions for outdoor enthusiasts. We employ approximately 7,000 people globally and sell our products in more than 100 countries. In 2025, we reported net sales of SEK 21 billion (USD 2.3 billion) and are headquartered in Stockholm, Sweden.
