This article first appeared on GuruFocus .
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Revenue:SEK3.4 billion for Q2.
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Organic Growth:2.5% in Q2; 3.1% for the first half of the year.
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Gross Margin:47.3%, up 1 percentage point from last year.
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Adjusted EBIT Margin:22.8%, up 1.2 percentage points from last year.
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Net Income:Increased by 4.7% in Q2.
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Cash Flow from Operations:SEK824 million in Q2.
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Leverage:Net debt to EBITDA reduced to 1.9x.
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Europe Sales Growth:4% in Q2.
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North America Sales Decline:-2% in Q2.
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Active with Kids & Dogs Sales Growth:8% organic growth in Q2.
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Bags & Mounts Sales Growth:5% organic growth in Q2.
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RV Products Sales Growth:4% in Q2; 6% year-to-date.
Release Date: July 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Thule Group AB ( THUPY ) reported continued organic growth and increased profitability in Q2, with sales amounting to over SEK3.4 billion and 2.5% organic growth.
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The company saw growth in all four product areas, with the fastest growth in the 'Active with Kids & Dogs' segment, which achieved 8% organic growth.
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Gross margin reached an all-time high of 47.3%, driven by favorable product and channel mix and efficiency gains in the supply chain.
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The acquisition of curli, a leader in premium dog harnesses, complements Thule's existing product portfolio and is expected to enhance growth in the dog transportation segment.
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Thule Group AB ( THUPY ) successfully reduced net debt by SEK100 million, bringing leverage down to 1.9x, and expects further reduction in Q3 due to strong cash flow.
Negative Points
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North America remains a challenging market for Thule Group AB ( THUPY ), with a 2% decline in sales, despite some positive developments in consumer demand.
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The company faces negative currency effects, impacting sales by approximately 2 percentage points in the quarter.
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Raw material prices, particularly aluminum, are expected to rise in the second half of the year, potentially impacting costs.
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The RV segment experienced a decline in new vehicle registrations, which could negatively affect sales in the coming quarters.
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Thule Group AB ( THUPY ) incurred costs related to the closure of a smaller satellite office in Belgium, amounting to SEK23 million.
Q & A Highlights
Q: Have you seen any evidence of consumers planning vacations closer to home this year? A: Yes, some indicators suggest this trend. For example, campsite bookings across Europe are up compared to last year, and there is positive data on pre-bookings for national parks in the US. However, the full impact will be clearer as the summer progresses.
Q: Do you see any meaningful impact on margins from the new technology platform for carriers? A: Yes, we have started to see improvements in gross margin from our technology platforms, particularly in bike carriers. While the mix has had a larger impact, supply chain efficiencies are contributing positively. We are also working on similar opportunities in other product areas.
Q: Can you provide an update on the North American market and current trading trends? A: North America remains challenging with a 2% decline in Q2. However, there are positive signs, such as strong growth in Thule.com sales and increased sales of Thule products by major retail partners. Despite this, retailers have reduced stock levels, which has not yet translated into increased orders for us.
Q: What are your expectations for gross margins in the second half of the year, considering raw material inflation and price increases? A: We expect raw material prices, particularly aluminum, to impact costs in Q3. We are implementing price increases averaging 2.5% in August to mitigate this. Additionally, we anticipate receiving USD 5 million in tariff refunds in Q3, which should positively impact our results.
Q: How do you view the organic growth trajectory given the current market conditions and your product launches? A: While we don't provide specific guidance, we are focused on driving organic growth. The market presents both challenges and opportunities, such as the impact of the Middle East conflict and consumer preferences for local vacations. The quarter has started in line with Q2's performance, and we remain optimistic about our growth prospects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
