Dometic Group reported second quarter net sales of SEK$5.969 billion ($621 million), down 5% from the same period a year earlier, as weak consumer confidence, soft boat registrations and input cost inflation weighed on results across the company’s global business.
Organic growth declined 1% for the quarter. The Stockholm-based company, which supplies cooling, heating, power and electronics products to the marine, RV and outdoors sectors, reported full-year 2025 net sales of SEK$21 billion ($2.3 billion).
EBITA before items affecting comparability came in at SEK$739 million ($77 million), corresponding to a margin of 12.4%, compared with 14% a year ago. Earnings were impacted by a SEK$52 million ($5.4 million) bad debt expense related to the Chapter 11 filing of West Marine. Operating profit was SEK$513 million ($53 million), a margin of 8.6% versus 11.9% a year earlier. Profit for the quarter was SEK$240 million (25 million). Net debt to EBITDA leverage ratio held steady at 3.3x, with a long-term target of approximately 2.5x.
“We delivered a stable second quarter despite challenging market conditions and weaker consumer confidence, particularly in the U.S.,” president and CEO Juan Vargues said in a statement. “In this environment, we focus on factors within our control: growing our service and aftermarket business, executing our global restructuring program, offsetting cost inflation through price adjustments, investing in product innovation, and generating cash flow to reduce net debt.”
Dometic said that market conditions were more difficult than anticipated at the start of the season and that geopolitical developments in the Middle East renewed uncertainty and caution among consumers, affecting both dealers and OEM manufacturers.
The marine and mobile cooling segments showed organic growth during the quarter, and gross margin improved to 30.1% from 29.7%, supported by continued growth in the higher-margin service and aftermarket sales channel and restructuring program savings.
The company offered no forecasts, but Vargues said, “Given the elevated uncertainty, we remain focused on what we can control, including executing the global restructuring program and advancing our strategic agenda.”
