Dometic Group AB (publ)

Welcome to Dometic Q2 Report 2026. Today I am pleased to present CEO Juan Vargas, CFO Pierre Collison, and Head of Investor Relations Tobias Norby. For the first part of the call, all participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by pressing pound key 5 on their telephone keypad. Now I will hand the conference over to the speakers. Please go ahead.

Hello. Good morning, everybody, and welcome to the presentation of the interim report for the second quarter of 2026. Let's move into the highlights. As most of you are aware of, the market conditions are still tough. uncertainty is still there. We have seen as a consequence of the situation in the Middle East, higher raw material prices that might be leading to inflation in the coming months, at the same time as the tariff volatility is still there. On one side, the American administration took away a number of tariffs but implemented some new tariffs as well, the so-called 2-3-3 tariffs. We see consumers still being cautious in the same way as our customers in the value chain, meaning OEMs and dealers and wholesalers. And we have seen as well, as a consequence of what I commented before, a situation where industry production, especially in the US, is coming down, but also in Australia as a consequence of higher interest rates implemented during Q2. and we see also kind of a slowdown, starting to see kind of a slowdown in Europe as well. Looking at our performance, we delivered a negative organic growth of 1%, with a positive single-digit growth in service and aftermarket, according to our strategy. We are happy to see as well a distribution is coming in part with last year, and we see a decline in OEM for the reasons commented before. Evitae margin coming in at 12.4 versus 14% last year, and the margin reduction is primarily driven by the increased raw material and freight costs. We see also increased LGNA, partly due to a budget provision for the Chapter 11 fight by West Marine in the U.S. affecting primarily marine, but also our mobile cooling solution segments. And then we continue to invest in product development and marketing, following, obviously, all the product launches that we have done and the ones that we have on the pipeline. And we also have had a tariff refund, which is offsetting a part of the tariff cost that we have, additional tariff cost that we have in the quarter. Pre-cap flow over 800 million in comparison to 1.3 billion last year leading to a leverage of 3.3 which is in bar with previous year but also Q4 2025. Considering the market situation especially in the US where we see the RV industry coming down additionally Just when looking at the last three months that we saw information from the American Association, manufacturing is down 16%. We will see how the numbers look in June, but we don't expect any improvements in comparison to what we have seen so far. We also decided to extend the global restructuring program. As you all know, we were expecting growth in 2026. the growth is going to be tough to achieve, and that means as well that we continue to adapt our costs to the new circumstances. In this case, we have done, in the main program, we have done a lot which is impacting our growth margins, meaning consolidating factories, consolidating distribution centers, some SG&A. In this extension of the program, we will focus more on the SG&A part of the business, especially, again, in the land vehicle segments where we see the delay in the recovery of the markets. The expected savings are going to achieve 150 million krona when we are totally done by mid-2027. And we are booking restructuring cost of 100 million, which is recorded as items affecting comparability And of course, depending a little bit on the market situation and how the market evolves all the time, we will continue to consider additional measures. Looking more at the hard numbers, sales close to 6 billion with 1% organic decline. We also had 1% due to discontinued businesses. EBITDA, 739 million. reaching a 12.4 EBITDA margin in comparison to the 14% that we achieved last year. Adjusted EPS of 1.27 EUR and a free cash flow of a little bit over 800 million in comparison to 1.3 billion. Two main reasons for that. The main reason is really high inventories in the quarter as a continuation of the high inventories that we had also in Q1. In this case, on top of the inventory that we built up on the expectation of having a much better year 2026, and remember that we are in Q2, which is a stronger quarter, and then we have Q3, which is also a strong quarter. But on top of that, we are also moving a couple of factories. We are shutting down a couple of factories as a consequence of the restructuring program that we are running. And in order to prevent problems, delivery problems during the move We are also building extra inventories just to be on the safe side. And again, leverage ending up at 3.3. Looking at the first half of the year, 11.2 billion in total revenue, or the same organic decline of 1%, and the same also 1% in negative portfolio changes. EBITDA close to 1.3 billion or 11.6 as EBITDA margin in comparison to 12.3 adjusted ETS of 2 Corona and 14 Erlen slightly below last year's numbers and Africa's flow of 650 million reaching the same leverage as we had one year ago. Looking at the breakdown of sales Again, 1% down with Land Vehicles 4%, affecting primarily Americas, negative 16% for the reasons that we already commented. APAC is also down 12%. We saw a much better Q1. We saw a deterioration in Q2 rapidly. After the interest rate increases, the industry really pulled the brake again. While EMA shows positive growth of 3%. Happy to see the marine continues to show organic growth 3% as a continuation of 2% that we saw in Q1. And even mobile cooling came in at plus 5% in comparison to the plus 1% that we were showing in Q1. While Global Ventures down 16% in comparison to minus 7% in Q1. And I will come back to those numbers later. Looking at the breakdown of sales by channel, no major changes. In reality, sales and aftermarket becoming 31% of the total group, while distribution is coming down to 31% for 33% that we were showing last year. And this will change depending on the quarters. We have sales and aftermarket distribution being very, very strong in Q2 and Q3, and then coming down in Q4 and Q1. while the OEM business is a little bit more stable during the year. Looking at the different channels, again, happy to see the second quarter of growth in terms of the market, distribution coming at the same level, and we have seen also in the last two quarters quite a bit of stability, and then the OEM. a further deterioration driven very much by North America and Australia. Just as a comparison, looking at some of the market indicators, we see the RV manufacturer in the US coming down and see the acceleration in Q2 in comparison to Q1. We see registrations in Europe being very, very strong during the cross-up, partly driven, especially in February, by the new model series, but then coming down in April, May, a little bit better in June. So it's going to be super interesting to see what happens now in Q3, whether we see stability in Europe. And I can see meeting customers across Europe in the last couple of weeks that you have a mixed bag. We see some of the customers being optimistic about the second half, while some of the OEM customers especially being more cautious. about the second half. We also see that the U.S. registrations are down in the U.S. We don't have, unfortunately, the same quality data for Europe. In Europe, we see that we are still growing quite nicely in the European side, while the OEM in the U.S. is still negative. Looking at the EDTA evolution over time, 12.4, as I commented before, versus 14%. Gross margins continue to improve, 30.1 versus 29.7 20 years ago. We have, obviously, a positive channel mix, which helps the market growing while OEM is coming down. But we also have the savings performed or delivered by the restructuring program. At the same time, moving in the opposite direction, we have raw material costs and freight kicking in, and on the list driven very much by the new oil prices. But we also see metals, aluminum coming up quite significantly. We see steel starting to point upwards as well. And then we also have tariffs and tariffs refund in the quarter, which is having a positive impact. Still, we see positive impact very much driven by the channel and the restructuring program. SG&A, on the contrary, was negative, came in with a 10% increase versus last year. Half of that is the budget provision for West Marine, that most of you are aware of, filed for Chapter 11 two months ago. In that case, we are taking obviously a cautious approach and we are booking entire risk while obviously we are still negotiating and expecting to get some of that money back at the same time as we continue to invest in product development and marketing. Moving to the segments, Land Vehicles down 4%. Again, Europe, positive, while both Americas and APAC is negative. We see a slight decline in services of the market and a continual decline in the RVVM side. Looking at EBITDA, 246 million, or 10.3%, reduced profitability very much due to the lower sales. We see also raw material costs kicking in, higher raw material costs kicking in. and we have a flat development on SG&A despite the fact that we are still investing in product development and marketing. Marine, positive. We are happy to see continuous growth with very positive service and aftermarket, driving margins for the marine business, while slight decline in UEM, driven by North America, while, again, Europe is pretty positive still today. I have commented a couple of times that the market, the boating market in the U.S. and marine are slightly different. In Europe, you have more sailing boats, but you also have the yachts. And on the yachts, we have a lot of equipment. And normally, all the boats are much, much longer than what we see in North America. So good evolution, in other words. Evitae margin coming in at 18.8. versus 19.6 last year, despite the bad debt provision for West Marine. We have higher SG&A, we continue to invest in pro development, not the least on the gyro program that we are expanding, at the same time as we are launching new broads, and therefore continue to invest in marketing as well. ABTA, as I commented, improved underline, it will exclude for a bad debt provision. Power cooling, organic growth, 5%. We see a very solid growth in North America. We see as well a good oil intake. So the season is developing in a positive way, which we are very happy about. Everyday margin, though, down to 11.5% as a consequence of significantly higher pressing prices that came just after the breakout of the war in the Middle East. And of course, we are increasing prices, but it takes a while before we see an effect. We started to see the effect in June, and our expectation is obviously that we will see these margins coming up again during Q3 and Q4. We also see in this case that we continue to invest in product development, and even the filing of Chapter 11 for West Marine did have also a negative impact. on our margins in the SG&A line. Global Ventures, 16% down, driven partly by mobile power solutions, which is very much connected to the RV industry, but also by residential in the US, where we have seen also our public competitors coming in with pretty negative numbers. So we had a pretty strong 2025, We are comparing with pretty strong numbers when you're a girl, but now is turning negative Instead every day margin nine point three and of course in this case. We are talking about the small organizations. It's a little bit more difficult to adapt But that cost so is very much and driven by the lower volumes and higher CNA as percentage of sales We can continue to to put a lot of emphasis on sustainability and innovation as part of sustainability as well. Injuries still kept at a very good level and well below our targets of one. We see shared female managers at the same level as we have on the target. Renewable energy, we continue to invest. We are up to 44%. at the end of Q1. Innovation index at the same level as Q1. And as you may remember, we have some target 25%, and we will work hard to achieve that also at the end of this year. And then we have also the share of high expense assessments on suppliers on 63%. We are coming from 53% in Q1, so even there we see improvements. in comparison to where we are coming from. Looking at some of the exciting tools that we are launching, and before that, we have been commenting, this is the second word in a row, commenting that we are investing in auto launches. We run a major campaign building up with the target of building up even more the brand awareness for Dometic, especially on the outdoor industry in Americas, and we have got a lot of good feedback after that, and we will continue to invest in the same manner moving forward as well. Looking at innovation, again, we continue to invest in our portable products, in this case, the real program. We are seeing good growth with this program and we see also very nice margins. Again, coming back to the outdoor industry, we have the introduction of a new bed slide to facilitate how to use our mobile cooling and packaging solutions. Moving into more of the RV industry, we are launching a new electric water heater. which is delivering a number of benefits in comparison to the models that we are replacing at this point. And this is specifically for North American markets. And a lot of good new product launches in the pipeline. Moving from products to the restructuring program. Again, we extended with $150 million in savings, so we will generate totally 900 million at the end of, sorry, mid-2027, and 750 by the end of this year. So far, we have closed one manufacturing site, and we have a couple of them in the pipeline to be closed before year-end, and six distribution centers. About 400 employees have been impacted so far. We ended up Q1 with savings running rates of $400 million. We extended that to $490 million at the end of this quarter, so progressing according to our expectations. We have cashed out in the quarter of $84 million, which brings the total amount to $339 since the program started in Q1 2025. And then, as I commented already, 1% in discontinued businesses was affected in both Q2 as well as year-to-date. And with that said, I would like to hand it over to Perf.

All right, thank you. Hello, everybody. I will walk you through the financials then. So, P&I-wise, top line, close to flat versus last year, where we had the sales in the service and off the market offsetting the decline on OEM, which is also then helping us on the gross margin as it is a positive margin mix for us. Gross margin up 0.4, which is burdened by some couple of significant headwinds, including then the raw material prices on the resin side and also on the metals hitting the mobile cooling and to some extent also the marine segment. We also have significant tariff costs introduced in Q2 of last year, which did not fully impact us last year, but it's a full effect this year, obviously. Offsetting that is the positive savings that we have from the restructuring program. together with the price increases, and then also the tariff refund that we booked in Q2, which is to a large extent then for the quarter also in the tariff cost. Coming down to the operating expenses, as Johan talked about, we have the bad debt provision related to West Marine filing for Chapter 11 of some 50 plus million. And then we also have an increase in product development, increasing then the SDNA compared to last year. EBITDA, before IEC, then $739 versus last year in running currency of $877, and a decline then on the operating margin of 1.6. Of course, we're not happy with the decline in the result, but at the same time, solid result, I would say, considering the environment with headwinds both in the market demand and on the cost side. We recorded the 100 million in items affecting comparability for the expansion of the 2024 restructuring program. Looking at the finance net, it's down favorably. So we have a lower debt, so lower interest expenses, and then also a positive effect on FX. on our financial assets compared to last year. Cashflow, 1,083,000,000 in operating cashflow, negatively impacted by the lower release of inventory or cash from inventory. We have a declining, we have a favorable impact on the inventory side. in the quarter, but not to the same extent as last year. And this is then due to a buildup related to the restructuring program where we have moves on the manufacturing primarily within the U.S. of some $20 million plus. We also have at a lower sales than the increase or flat sales versus an expectation of an increase in the quarter, which have resulted in a little bit of an inventory buildup. And then I think it's also worth mentioning that last year in Q2, we had a significant inventory reduction in mobile cooling due to production issues. So free cash flow then is favorably impacted by lower interest paid, partly due to a lower interest cost, but also due to timing of the interest payments actually. And looking at the financing, we repaid a 2 million Euro bond in Q2, in April actually, to reduce our debt. AR program is running, has no real significant impact net on the AR in the quarter. At the end of the quarter, we start quite strong sales in our receivables. Okay, next. So, a little bit of a trend chart here on the free cash flow. And as you see, and as you're probably aware of, Q2 and also Q3 are important cash flow quarters for us. We have a negative kind of trend here, which I would say is partly impacted by the lower sales than all the period tying up less working capital. Now we are leveling out on sales development, which is of course positive, but we continue to focus now on being efficient on our working capital, which takes us to the next slide then, where we see the overview of the working capital. And we are down in inventory days versus last year. You see a little bit of an uptick there in Q2, which I just explained. However, then partly offset then by the increase in payables related to the higher purchase system. We are at 25%, so that's a decline versus last year, an improvement versus last year, and flat versus Q1. Inventory is obviously a focus for us, which is the largest part of our working capital with 5.1 billion, so that is a significant number, and the number of days, 125, would also hopefully indicate that there is some potential for coming down going forward. And again, then accounts receivable slightly down versus less. Also related to cash flow, obviously, is the capex level. We are flat, I would say. Slight decline in terms of investments into fixed assets. We are running relatively low CapEx, I would say, in the company due to our asset-like supply chain. It's not a big burden for us cash flow-wise. R&D, as we talked about, is slightly up and actually then significantly higher than our investment into fixed assets. Moving over to the... the debt side of the balance sheet leverage is a little bit down versus Q1 down to 3.3 versus 3.4 and on par with Q2 in 2025 and we have actually a reduction of debt or net debt if you compare to that year 1.2 billion so we continue to work hard on our on our balance sheet, and this is obviously a focus area together with the working capital. And versus 2024, we are down 2.8 billion in net debt. So that's a good improvement for us, but we don't fully see that then, obviously, in the leverage ratio. Right. Next. Looking at the detail of our outstanding debt. We have a good maturity profile, I would say. The net debt of 9.3 billion. Sitting on the cash end of June of 3.6 billion. And we do plan to use some of that to pay back 750 million bond, the safe bond, here in Q3. We did pay back, as I mentioned, the 200 million euro. bond in Q4. Average maturity 2.7 years. And on top of this, we have obviously done the RCF of 300 million euro. Yeah. I think that was the conclusion of the finance side, so I'll leave it back to you, Johan.

Thank you, Per. Summarizing Q2, We deliver a solid quarter, considering obviously the very challenging market conditions, where we see lower volumes in a major part of the business, considering the American market, considering APAC as well. We see as well, from a little crisis, starting to kick in, having a major effect, especially in mobile cooling, but also in the other segments. We see consumer confidence is still at pretty low levels and unfortunately discussions about higher interest rates instead for decreasing interest rates. We delivered, as I said, an organic decline of 1%, which we believe is good if you consider what we see around us. We are happy to see that we have a positive mix with service and aftermarket, which are a critical part of our strategy growing. and even distribution looking better during the last two quarters. We see growth in marine and mobile cooling for two quarters in a row. And we see even when looking at the land vehicles, Europe growing while the other two are down. Backlog at the same level as last year. So the starting point for the quarter is in line with last year, which is positive as well. Leverage still under control, high, but under control, and we keep working to improve cash flow and to keep fighting our debts, our existing debts, considering as well that we have reduced about one-third during the last four years the net debt that we had after the pandemic. And then it's clear that we are a little bit more cautious, especially looking at American markets, and that we puts all attention to what we can influence, meaning growth in the services of the market, meaning the full implementation of the restructuring program, adapting pricing, obviously, to the new situation with raw material prices and freight costs kicking in, at the same time as we continue to invest in product innovation and marketing, supporting, again, our future growth. Strategically, as a consequence, innovation index at 24%, We are working hard to reach our target of 25% by the end of the year, and then added another 150 million in savings to the existing restructuring program, adding up to 900 million as total savings by the end of, sorry, by the mid of 2027. By the end of this year, we will be at 750. And with that said, I would like to open for the Q&A session.

If you wish to ask a question, please dial 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial 6 on your telephone keypad. Please mute your line when you have asked your question, and please limit yourself to only two questions. You can also write your questions on the webcast page. The next question comes from Daniel Schmidt from Danske Bank. Please go ahead.

Yes, good morning, Johan and Per. A couple of questions from me then. Just trying to reconcile your top-line statements, and I clearly hear you in terms of consumer confidence and high interest rates and all that. But still, you're only at minus one organically for the first half this year. And you did say the growth will be hard to achieve in 2026. But at the same time, you do write that price adjustments have started to take effect and that order intake improved in June and that order book is on par with last year.

Mm-hmm.

Are you seeing a very volatile market during the summer? Is it harder to judge than it usually has been historically? Or is this sort of a rather safe than sorry statement? Or is the order intake back down again in July?

No, I think it's uncertain. There's a combination of the different things. So we saw April okay-ish. May was weak. and June came in pretty strongly. So, it's difficult to judge. We see, as I said, I see some kind of stability in Europe, I see kind of stability on the marine side, but I see deterioration in the US RV industry and I see deterioration on the Australian RV industry as well. Keep in mind that Australia just increased interest rates twice during the second quarter. I would like to be much more clear than I am today, but it's simply too uncertain to say we are going to grow. I believe, obviously, that you have a difference between volume and top line in Krona and Erlen. I believe, obviously, that volume-wise, with the feeling I have just now, volume-wise, we are not going to achieve the target that we have for the year. At the same time, we have also price increases that will help organic growth from that perspective.

And are you realizing those price increases fully now, or is there still more to come during Q3?

No, no. We saw the first improvement we saw in June. I mean, keep in mind that, first of all, it's difficult to increase our prices when the prices are so volatile. So you need to wait for a couple of weeks to see are the prices stable or not. One of the most difficult to... to stop is really pricing prices. Pricing prices are immediately impacted by oil prices. And it takes one month. We get monthly updates on prices from our suppliers. And we are talking about major suppliers. Then, of course, we increase prices, but it takes a while before you send the price list because you want to see some stability. And then, of course, your customers are pushing back. So we started to see a clear improvement on the margins in June. and we will see improvements in the coming months, clearly. But you have a timeline, there will be cost increases and price increases.

Okay, and then a second question on Marine, where you did take the bad debt provision, most of it was my sort of understanding at least, maybe some of it ended up in mobile cooling as well.

Yeah.

But Given what you write in the report, that's around 52 million. If you add that back, it looks like the marine margin is 23% for the quarter. That's up 3.4 percentage points compared to last year. Is there a positive impact of tariff refunds in marine as well, or is this such a big jump?

Yeah, there is, but there is also an impact, a negative impact on additional tariffs. So you have a tariff refund and you have a new tariff. You have a 232 that was implemented in April as well, kicking on the other side. So what you have a positive effect is that you have a very positive service on the market. And of course, we continue to work on reducing our costs.

And how big was the tariff refund for the Group in Q2?

I will not tell you. We are negotiating with customers and suppliers. Okay. That wouldn't be super positive if we were commenting how much, as you may understand.

Okay. Okay. And just maybe just last one. You clearly state that you needed safety stock when it came to sort of restructuring that you were doing. In Q2, around 20 million U.S. was probably the impact on inventory. Is that going to be released again in the second half of this year, or is that going to follow us into 27?

I think we see some improvement in Q3, but the major improvement should be coming in Q4 because we intend to close a couple of sites during the fall. Okay. Thank you. You're welcome.

The next question comes from Agnieszka Wajlela from Nordia. Please go ahead.

Yes, good morning, Juan and Per. A couple of questions from me. Maybe a follow-up on Daniel's question on the bed depth provision. Could you please help us and quantify the split between those in marine and mobile cooling? How much is included in the results there?

is about 90%, about 85% to 90% is marine. 10% to 15% is smaller cooling.

All right, great. And then, yeah, just looking at the profitability of marine, then, you know, approaching 23% or at about 22%. How confident are you that you can kind of stick at above 20% level in the coming quarters if we see, say, single-digit organic growth that you achieved in the quarter?

I feel confident. And provided that we have, again, we continue to run plus two, plus three, plus four, we are going to see margins over 20%.

Perfect. Thank you.

And then also, Juan, maybe if you... Just one more comment, which is also following Daniel's question. I mean, keep in mind that these tariffs are killing when they are moving back and forth, back and forth. It is not easy to get back to customers. So some of the margin iterations you have been in marine is not just lower volumes. It takes a while before you get the clarity on how much is impacting every single product, calculating how much of increased prices. And it's not just about, you know, customers will raise questions. Please explain to me, and then you need to break down. Just now we have steel and aluminum from Canada obviously impacted by the new tariffs. So it takes a while before you get the price increases simply because it takes time to calculate. So I feel pretty confident that we will be above 20% provided that we have positive organic growth. Some positive organic growth.

Yep. Yeah, understood. And maybe, I understand you don't want to kind of disclose how much tariff refunds did you get, but can you just tell us how does it work, really? Like, do you provision for that, for your receivables? Have you received those money for the tariffs back already, or how does it work, really? And also, like, what should we expect for the gross and net tariffs, so to say, in the coming quarters?

We applied for it. There is a phase one, two, and three. And we have applied phase one and two because they are open. Phase three is not yet open. And for the ones we have applied, we have received already a significant part of what we applied for. So it's coming in.

Yeah. And tariffs on a gross level going forward, like the levels, you know, compared to what you paid already in the previous quarters?

Yeah, it's very difficult to predict, but I would say currently it's running on the... We see a constant level versus our imports, as a percentage of imports, so it fluctuates with the quarters and what...

All right, and the last one from me, really, to Juan. You say in your comment in the report that you did see some encouraging signs late in the quarter. Just tell us what they were and in kind of what markets and also maybe refer to what you're doing yourself.

I mean, it's very much about oil intake and the oil stocks. So, as I commented earlier, we saw in April being Not in line with last year, but not far away. Then May was pretty weak. Then, of course, you had two working days less in May this year than last year. But then June came very strongly, both sales-wise and orientate-wise. And it was a little bit all over. We see, again, the industry in the U.S., tough. We see the RV industry in Australia, specifically, tough. but we see Europe still holding up pretty well, even if registrations in Europe have been negative in the second quarter. When I'm meeting customers, and I have been meeting lots of customers myself during Q2, both in the US and in Europe, the Europeans is a mixed bag. I would say that some of the customers I'm meeting are still positive, optimistic about the second half, while some of the other customers, I would say perhaps, Thank you. You're welcome.

The next question comes from Frederik Evarsson from ABG Sundal Collier. Please go ahead.

Thank you. Good morning, Jens. First, sorry to come back to the romance, but when we think about the split or the bridge for Q3, what kind of headwind do you envision as you look into this quarter? Do you expect it to be worse than what you saw in Q2? And also, do you think you can offset the full piece through price increases, or will we have a sort of net negative impact?

Well, I think on the raw material side, we will continue to see headwind going into Q3. I mean, everyone can follow the index, and we see some positive indications in terms of index. But, of course, then you have the whole inventory impact where they have made purchases in Q2 that they rolled into Q3. We have implemented price increases. which have started to take effect. However, giving a number here on whether it will offset or not, it's hard to do. I think we will actually have a bit more headwind in Q3 than in Q2 when it comes to the raw material P&L impact.

Yeah, that makes sense. And on the price increases, do you think, is it having impact on demand or... or customers sort of absorbing the full increase?

Customers, I mean, nobody gets happy, right, when you get price increases. Customers react. At the same time, what is the alternative? So, of course, the concern is what will be the impact on the consumer, not on the OEMs or the dealers. I think the major question here is, again, the consumer.

Yes. And then on mobile cooling, some price adjustments here as well, of course. And you said you saw some positive impact from those in June, and my understanding is that you expect the margin to expand in H2. First, can you confirm that my assessment is correct?

That's right. We are talking about rising prices. Rising is the prime that we have in the mobile cooling business. And pricing prices, you have a number of major suppliers and they are adapting the prices on a monthly basis. So basically when the war broke out at the end of February, at the end of March, we got massive price increases. They continued in April and May. And of course it takes a while, and I mean a while, before you can send first the price list to your customers because you need to have some kind of stability. You cannot have negotiations every week with the major customers. And then it takes a while before they implement it. They also have a notice period. So that's why we started to see the price kicking in in June and those price increases will continue during the second half. So we expect to see better position in the rest of the year than we have seen in Q2. Good. In comparison to last year, of course.

Yeah. And maybe if I could sneak in one last on the inventory build-up related to the factory consolidation. You said more than 200 million USD. When do you expect this excess inventory to be cleaned out?

No, we said 20 million. 20 million.

The next question comes from Igor Chubik from DNB Carnegie. Please go ahead.

Hello, thank you. Just on the cost savings, the additional 150 that you expect to reach on a run rate by mid-2027, will this primarily come in 2027, or should we expect any additional cost savings also already in 2026?

The vast majority will be 2027. You might see some in Q4, but the vast majority we will see 2027.

Okay. And in terms of the cost, the restructuring cost of 100 million kronor in Q2 that you recorded, will the cash impact later on, and how will that be split?

It will be, the cash impact will be during this year, during 26, and it's almost all cash. There's only any write-down. I mean, very minimal, even to a write-down related to it.

So this time we are addressing primarily SG&A. We have been investing, as you know, we have been communicating, we are investing quite a bit in product development and in marketing. At the same time, as we see, obviously, that with the volume loss that we have seen in the last couple of years, we can adapt much more on the admin side and the back office side. So we want to keep the resources on the field. and Investing Innovation, but we see opportunities, again, to adapt to the new capacity levels. Okay.

And just out of curiosity, I mean, you mentioned that you have received already refunds for the Phase 1. I mean, why can't you communicate how the amounts, let's say, and for how much you have applied for Phase 2 as well?

Because you have, on the other side, you have also customers, right? And you have time lags between when we got the tariffs and we could get price into our customers. If we would communicate just now, I can tell you that we will have 200 calls in the coming couple of hours. Okay, I see. Thank you, that was all for me. Unfortunately, again, you need to understand what is going on, right? That everybody is looking for exactly the same kind of data. And that data is used, obviously, to put pressure on the prices. And again, keep in mind that we always have a time lag between the tariffs or raw material prices and when we can get it back to our P&L. So we don't want to be naive and expose ourselves to give out more too early.

And again, I think it's worth mentioning again that the actual tariff cost is still higher than the refund that we have received in the court. The running tariff cost is clearly higher than the refund. Also, there are a number of different refunds that was implemented.

But can I just ask you then, because when I read the Q2 report last year, you mentioned that the impact isn't, that your exposure isn't that significant in the U.S., so I'm just trying to, you know, understand how much of an issue is this.

I mean, if you take the studies, I mean, everything is dependent. If you compare with what we had the first time, The next question comes from Johan Eliasson from SB1 Markets. Please go ahead

Hello, Johan, Per and Tobias. Thanks for taking my question here. I was just curious about the comment you made about creating movement in the RV industry and there is a development towards increased consolidation that could generate strategic opportunities for Dometic. What are you referring to here? getting closer to divesting some of the businesses you put up for sales or seeing other opportunities?

I mean, there are always opportunities, as you know. But I mean, more specifically, it's clear that what happened through the merge, the potential merge, still they need to get, obviously, authority approvals, right? We don't compete with Patrick whatsoever. Patrick competes with Liebert, partly, right? The combination Lippert and Patrick is powerful in comparison to the OEMs. The question is whether OEMs are super happy or not about that merge. And normally customers want to have options. Dometic might be an option, obviously. So what you get the feeling is that on the American market just now everything is moving. And that creates opportunities, clearly. So, nothing more, nothing less. I don't see the same movements in Europe. I don't see the same movements in APAC. I don't see the same movements in marine. I read, nonetheless, on Davies Industries, that customers are buying the suppliers, to my knowledge. The only customer that has acquired a supplier was Thor, year 2021, acquiring Erexcel. I don't see more movement from that perspective affecting our business. But I see that the Patrick Lippert is obviously a big one. You can see that the size of those two companies being 4 billion each in revenues is 8 billion. It's a powerhouse. And I simply believe that customers always want to have options.

And at the same time, you have Thor finally trying to consolidate different brands they've acquired over the years, which could be a potential negative for you. Have you seen any exposure to that so far?

No, not more than we have seen historically. I mean, if you look at the way the industry is running, especially the RV industry, marine industry is different. On the RV industry, it's clear that you have is the brands that are driving the business. It's clear that Thor has been communicating this, but it's nothing new either. So it's still to be seen whether we have an impact or not. I mean, we look at our numbers in the quarter and even on the year to date, we are very much in parity with the market just now. So we don't see any effects yet, at least.

And, I mean, what is your sort of exposure to Thor? Is it the same as the market shares, or is it above or below, would you say?

Yes. Yes.

Okay. That's all I have. Thank you very much.

Keep in mind, Johan, that they acquired LXL. LXL was one of the main competitors in the U.S. 2021. So they have already that one.

Yeah, and that's actually a good question. Would you say you have taken market shares from Excel since then, outside Thor?

I believe that Excel has been shrinking, but I believe that Libra has been taking the market share from Excel. Okay. You know, there's always a risk when you as an OEM acquire your own suppliers because they are not just supplying to you they are supplying to your immediate competitors and as you know the American market is pretty consolidated having three major players Thor, Forest River and Winnie the Pooh representing 85% of the entire markets they don't want to feed one another's P&Ls

Just on market shares in the US. I mean, you lost market shares in Fridges when the Chinese arrived. You lost some market shares in Awnings when you moved to Mexico. And now, obviously, you have not been able to gain the lost market shares from Aracel. How would you see your competitive position in the U.S. market? Are you slowly fading out there, or what's happening?

That depends on the products. I mean, we are still selling refrigeration. We are still selling. We are pretty big on sanitation. I would say we are market leaders on sanitation. I would say that we are number three on air conditioning. So, I mean, we are still alive. The market has moved. As you just said, I mean, when we are talking about Liebherr, you need to consider Liebherr is importing Chinese products from Taiwan. They acquire two Chinese distributors in the US. And that's where, obviously, the volume of RxF has been losing to Liebherr as well.

Okay. Thank you very much.

You're welcome.

The next question comes from Daniel Schmidt from Danske Bank. Please go ahead.

Just two short follow-ups. The repayment that you're planning to do in September, 750 Swedish, how much interest rate is that currently running at?

I don't know, actually. I have to come back on that.

I don't have the percentage on top of my mind, but what you will see is obviously that we are going to pay less, but we will pay in interest, we are going to pay less in kronas, but we are going to have a slightly higher interest rate percentage-wise for the remaining part.

Okay. And then just Just to repeat maybe, when you talked about mobile cooling and the price increases that you've been conducting and you started to see the results of that in the end of Q2, you did say that you believe that you will expand margins in the second half of this year, year over year, right?

Yeah, in comparison to what we have seen. I mean, we lost 1.5, 1.6% each points. in Q2, we are not going to see the same deterioration moving forward. You will see a recovery stepwise in Q3 and Q4.

Not only referring to Q2, also referring to H2 last year. Maybe I got you wrong.

I was comparing to Q2. I was comparing to Q2. Okay. So that will depend a little bit what happens with oil prices because as you know oil prices went up dramatically then they started to come down and now they are coming up again. So that will depend a little bit on how they behave.

Yeah. Keep in mind that the oil prices will still hit us negatively in Q3. Yeah.

Okay.

That's all for me.

Thank you. We have one question from the webcast audience that we will take now. And the question refers to our aftermarket business, which is performing well at the moment. But how are we seeing the competition evolving? Are we seeing OEMs entering into this part as well?

Are we seeing new online players? The only competition that we have seen is Trigano. Trigano started to acquire their own distributors, their own distribution a few years ago. They keep consolidating especially in France. Obviously, those dealers that were OEM dealers were also our dealers. So there we have seen some movement in recent years. Nothing new has been there now for four or five years. Other than that, private label. Yes, private label. We have seen a massive in flow, grab a label into wholesalers across Europe. And one of the things that we have implemented is that we launched, as we communicated, I think in Q4 or Q1, a new brand called Vaeco, which is fighting back and where we see a very, very positive development during the first two quarters of this year.

There are no more in line for questions, so I hand the conference back to the speakers for any closing comments.

So thank you very much everybody for your attention and participation on this conference call. You can rest assured that we will keep working very hard to keep our margins, to protect our margins, to deliver cash flow by that. Hopefully we will see as well leverage coming down after a few years fighting against high leverage. So thank you very much for your attention and goodbye. Enjoy your summer.