Dometic has initiated a restructuring program primarily focused on region Americas in Segment Land Vehicles, intended to further align capacity, structural costs and the business portfolio with current market conditions and improve profitability over time.
The restructuring program includes capacity adaptations, portfolio simplification and a more selective channel strategy. The program entails restructuring costs of SEK ‑425 m and is expected to generate annual savings of approximately SEK 215 m once fully implemented by the end of 2028. Approximately SEK 140 m of the restructuring costs are expected to impact cash flow. The restructuring costs are reported as items affecting comparability in the third quarter of 2026.
Following an assessment of the carrying value of Dometic’s assets, Dometic will also recognize non-cash goodwill impairment charges of SEK ‑4,229 m. The impairment comprises; SEK ‑1,835 m related to Land Vehicles, SEK ‑2,139 m related to Mobile Cooling Solutions and SEK ‑255 m related to Global Ventures.
The impairment has no direct impact on cash flow, EBITA or the Group’s net debt to EBITDA leverage ratio.
For further information, please contact Tobias Norrby, head of investor relations, at +46 706 647335
or [email protected].
In addition, Dometic has appointed Kristoffer Ljungfelt as the new chief financial officer (CFO) of Dometic Group. Kristoffer joins Dometic on Nov. 1 from Nobia, where he has held positions including CEO and CFO. He will be based in Stockholm, join Group Management and report to Juan Vargues, president and CEO.
Previous roles prior to Nobia include several leading roles at Electrolux.
“Kristoffer’s experience from both finance and business roles in listed, global and decentralized organizations, will be a great asset in our continued transformation journey. I am very pleased to welcome Kristoffer, and at the same time would like to thank Per Carlsson for his valuable contribution as interim CFO,” says Juan Vargues, president and CEO of Dometic.
Per Carlsson will remain with Dometic until year-end to support a smooth transition.
Q3 Financial Performance
- Net sales were SEK 5,116 m ($515.85 million USD). Organic growth was 3%.
- EBITA before items affecting comparability was SEK 495 m ($49.9 million USD), corresponding to a margin of 9.7%.
- Items affecting comparability amounted to SEK -72 m (-$7.2 million USD) 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 (-$426.31 million USD).
- Operating profit (EBIT) was SEK -3,936 m (-$396.77 million USD), corresponding to a margin of -76.9%.
- Profit for the quarter was SEK -4,380 m (-$441.37 million USD).
- Earnings per share were SEK -13.71 (-$1.38 USD). Adjusted earnings per share were SEK 0.03.
- 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,” CEO Juan Vargues said. “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.”
