Dometic issued its interim first quarter financial performance report on Thursday, April 23.
Note one Swedish Krona (SEK) is equivalent to $0.11.
First Quarter 2026 Highlights
- Net sales were SEK 5,239 m (5,830); a decrease of -10% mainly related to currency translation effects. Organic growth was 0% (-10%).
- Service & Aftermarket sales channel grew 5% organically, while Distribution sales channel was -1% lower organically and the OEM sales channel declined -4% organically.
- EBITA before items affecting comparability was SEK 557 m (606), corresponding to a margin of 10.6% (10.4%).
- Operating profit (EBIT) was SEK 432 m (465), corresponding to a margin of 8.2% (8.0%).
- Profit for the period was SEK 170 m (181).
- Earnings per share were SEK 0.53 (0.57). Adjusted earnings per share were SEK 0.86 (0.88).
- Free cash flow was SEK -192 m (-406). Cash flow was SEK -225 m (493).
“Dometic delivered a solid first quarter in a period of increased global turmoil. Good growth in the Service & Aftermarket sales channel was the main contributor to a flat organic net sales development and improved margins,” said President and CEO Juan Vargues. “The gross margin continued to grow to 29.6% (28.7) and the EBITA margin improved to 10.6% (10.4).
“Net sales for the first quarter amounted to SEK 5,239 m (5,830), corresponding to an organic net sales development that was unchanged compared with the first quarter of the prior year. Both the Marine and Mobile Cooling Solutions segments reported positive organic growth, while the Land Vehicles segment was slightly negative. Sales mix was favorable, with 5% organic growth in the Service & Aftermarket sales channel, driven by both the Marine and Land Vehicles segments, offset by a small decline in the Distribution sales channel and -4% decline in the OEM sales channel.
“We are encouraged by a strong end to the quarter, despite concerns about potential negative market effects from ongoing geopolitical events. In addition to the positive net sales trend, our order intake strengthened across several segments, including higher-margin areas Service & Aftermarket sales channel and the Marine segment, indicating a continuation of the positive momentum seen during the last months.
“New product development remains an important growth driver for us, and recent launches, including a new line of modular drinkware, new roof-top tent models, and a new Waeco-branded aftermarket range for recreational vehicles targeting the value segment, have been well received.
“The gross margin increased to 29.6% (28.7), supported by cost reductions from the Global Restructuring Program and a favorable sales mix. We continue to invest in innovation and in strengthening our sales organizations in a number of areas. EBITA amounted to SEK 557 m (606), corresponding to a margin of 10.6% (10.4). By segment, Land Vehicles delivered higher margin and the margin for Global Verticals was unchanged.
“Free cash flow, which as a result of seasonality normally is negative in the first quarter, improved to SEK-192 m (-406). Cash flow from changes in inventory was lower as inventories increased in response to higher order intake. The net debt to EBITDA leverage ratio was 3.4x (3.3) at the end of the quarter. We maintain a strict focus on earnings and cash flow to continue reducing debt and leverage, working toward our long-term target of around 2.5x.
“After the pandemic, high interest rates, weak consumer confidence and excess inventories drove market demand to around a ten‑year low. During 2025, early signs of stabilization emerged, with improving order intake, easing sales declines, and gradual retail inventory normalization. While protecting margins through cost efficiency, we continued to invest in our offering and progressively shifted focus back to growth, and it is encouraging to see these efforts paying off, as organic net sales returned to neutral territory for the first time since mid 2022.
“Against a backdrop of increased market uncertainty sparked by geopolitical events, and as early indications pointed to somewhat weaker-than-anticipated demand due to these conditions, the board of directors proactively decided to withdraw the previously communicated dividend proposal to maintain financial flexibility, a decision that was communicated to the market on March 12. While we maintain our initial assumption of achieving positive organic growth in 2026, we also remain mindful that the risk level going forward is elevated given the geopolitical situation including the crisis in the Middle East and a changing tariff landscape, and its impact on consumer confidence.
“Long-term trends in the Mobile Living industry remain strong, and we will continue to relentlessly drive our strategic agenda. Thanks to the continued dedication and efforts of our employees worldwide, we are positioning Dometic well to deliver on our targets while providing high-quality products and services to our customers,” said Vargues.
