GROWTH AND SOLID PERFORMANCE IN CHALLENGING MARKETS
Third quarter:
- Net sales were SEK 5,116 m (4,885). Organic growth was 3% (-6).
- EBITA before items affecting comparability was SEK 495 m (506), corresponding to a margin of 9.7% (10.4).
- Items affecting comparability amounted to SEK -72 m (-1) mainly relating to a new restructuring program in Land Vehicles and a reversal of the provision for the ACON earn-out dispute case.
- Operating profit (EBIT) was negatively impacted by a non-cash goodwill impairment of SEK -4,229 m.
- Operating profit (EBIT) was SEK -3,936 m (375), corresponding to a margin of -76.9% (7.7).
- Profit for the quarter was SEK -4,380 m (113).
- Earnings per share were SEK -13.71 (0.35). Adjusted earnings per share were SEK 0.03 (0.64).
- Free cash flow was SEK -90 m (527), impacted by seasonality in the trade receivables program, timing of interest payments and a tax settlement payment.
CEO Comment
Dometic delivered a solid third quarter with organic growth of 3% (-6%), continued positive momentum in order intake and a strong order backlog, despite challenging end markets, particularly in the OEM sales channel. Growth was broad-based, with three of our four segments reporting organic growth. Both the Service & Aftermarket and OEM sales channels contributed to growth, and we strengthened our market position in several product categories. While profitability remains below our ambitions, the quarter demonstrated the resilience of our increasingly diversified business. We also took operational actions to improve profitability. Despite the continued volatility and limited visibility across many end markets, we are encouraged by our performance and positive order momentum as we look ahead.
EBITA before items affecting comparability was broadly in line with the prior-year quarter, amounting to SEK 495 m (506), corresponding to a margin of 9.7% (10.4%). Higher sales and restructuring initiatives supported earnings, but these benefits were offset by higher raw material prices, continued consumer trading-down and increased SG&A costs as we continued to invest in innovation and sales. Price increases have been implemented to mitigate raw material cost pressures, with benefits being realized gradually.
Marine delivered another solid quarter with organic growth of 4% (1), driven by strong performance in the Service & Aftermarket sales channel, and an EBITA margin above 20%. Land Vehicles grew organically by 2%, driven by EMEA, predominantly in the Service & Aftermarket sales channel. Mobile Cooling Solutions delivered organic growth of 9%, while EBITA was unchanged, mainly because price increases had not yet fully offset higher raw material costs. Global Ventures recorded an organic sales decline of -6% and lower EBITA.
To improve profitability and strengthen long-term competitiveness, we initiated a new restructuring program, primarily focused on Land Vehicles Americas. The measures include improving asset utilization by rightsizing capacity, simplifying the product offering and adopting a more selective channel strategy, with the aim of reducing costs and improving the quality and resilience of earnings. The program targets annual savings of SEK 215 m by the end of 2028. Restructuring costs amount to SEK -425 m, of which approximately SEK -140 m is estimated to impact cash flow.
As stated in the Q2 2026 report, further measures may be taken depending on market developments. The challenging environment is also driving change in the US RV industry. We see a trend towards new partnerships and increased consolidation that could create strategic opportunities for Dometic.
We recognized a non-cash goodwill impairment of SEK -4,229 m in the quarter, mainly reflecting the sustained downturn in the North American recreational vehicle market and higher discount rates. The impairment relates to the Land Vehicles and Global Ventures businesses in North America, and to Mobile Cooling Solutions. The impairment had no impact on EBITA, cash flow or the net debt to EBITDA leverage ratio.
Cash flow from operating activities was SEK 480 m (926) negatively impacted by seasonality in the trade receivables program, while free cash flow in the quarter decreased to SEK -90 m (527), impacted by the timing of interest payments and a tax settlement payment. The net debt to EBITDA leverage ratio was 3.4x (3.2) at quarter-end. Reducing debt and leverage remains a key priority as we work towards our long-term net debt to EBITDA leverage target of around 2.5x.
Finally, we are pleased that the court ruled in Dometic's favor on all claims in the earn-out dispute case relating to the 2022 Igloo acquisition from ACON, bringing this matter to a successful conclusion.
Looking ahead, positive order development and a stronger backlog provide encouraging signs as we enter the fourth quarter. Nevertheless, market conditions remain challenging and volatile, and we will continue to operate with discipline and caution. Our priorities remain clear: improve profitability and cash generation, reduce leverage and continue investing in the capabilities that support long-term value creation. Through continued execution of our strategy and the actions announced this quarter, we are strengthening Dometic's competitiveness and earnings quality over time.
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), October 22, 2026, during which Juan Vargues, President & CEO, and Per Carlsson, interim CFO, 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/2026-10-22-q3-2026
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 at 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=5004849
This information is information that Dometic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CEST on October 22, 2026.
FOR FURTHER INFORMATION, PLEASE CONTACT
Tobias Norrby
Head of Investor Relations
tobias.norrby@dometic.com
+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). The information was submitted for publication, through the agency of the contact person, on 22-10-2026 07:30 CET.
