Thule Q2 2025 presentation: modest growth amid market headwinds, strategic investments continue

Introduction & Market Context

Thule Group AB (STO:THULE) reported its second quarter 2025 results on July 15, showing modest organic growth despite challenging market conditions, particularly in North America. The company’s stock closed at SEK 232.4, down 1.2% following the earnings announcement, reflecting market concerns about margin pressure despite sales growth.

The Swedish outdoor equipment manufacturer achieved total sales of SEK 3,403 million in Q2 2025, representing a 16% year-over-year increase excluding currency effects. However, organic growth was limited to 1.5%, with a stark contrast between European performance (+4%) and North American results (-3%).

"We are global market leaders in the most important product categories," said CEO Mattias Ankarberg, acknowledging the tough market conditions while expressing confidence in the company’s investment strategy.

Quarterly Performance Highlights

Thule’s reported growth of 9.8% was impacted by a -5.9% currency effect, with the company’s gross margin improving to 46.3% from 44.4% in the previous year, primarily driven by the Quad Lock acquisition. However, the adjusted EBIT margin decreased to 21.6% from 23.6% in Q2 2024, as the company front-loaded product launches ahead of the high season.

The company’s long-term revenue and earnings trend shows steady growth, with last twelve months figures reaching SEK 10.1 billion in net sales and SEK 1.6 billion in EBIT, resulting in a 16.0% EBIT margin.

Cash flow from operations reached SEK 774 million, down from SEK 879 million in the same period last year, with the company noting that working capital is returning to historical seasonal patterns. Thule’s net debt to EBITDA ratio increased to 2.00 in Q2 2025, up from 1.83 in the previous quarter.

Category Performance

Thule’s performance varied significantly across product categories. Sport & Cargo Carriers, the company’s core business, saw 3% growth in Q2 and 1% year-to-date, driven by new products like the upgraded Thule Easyfold 3 bike carrier and the lightweight Thule Outpace. The company noted particularly strong performance in Europe, offsetting continued weakness in North America.

RV Products grew 4% in Q2 despite ongoing challenges in the RV industry, with aftermarket sales compensating for declines in the OEM channel. The Active with Kids & Dogs category achieved 1% growth in Q2, bolstered by strong performance in dog transportation products and child car seats.

The most dramatic shift came in the Bags & Mounts category, which declined 21% organically but grew 169% including the newly acquired Quad Lock, which now represents 67% of the category’s year-to-date sales. Quad Lock itself grew more than 15% organically, demonstrating the value of Thule’s strategic acquisition.

Geographic Performance

Thule’s performance showed a clear geographic divide, with Europe delivering 4% organic growth while North America declined by 3%. However, the company highlighted that North American performance had improved significantly from the 13% decline seen in Q1 2025, following strategic changes implemented earlier in the year.

North America represents approximately 25% of Thule’s sales, and the company has implemented several initiatives to address challenges in this market, including:

1. Establishing a new dedicated North American sales organization based at the regional headquarters in Connecticut

2. Focusing growth investments on attractive segments like bike carriers and pick-up truck accessories

3. Implementing price increases to offset the impact of tariffs

"Changes made in North America are paying off," the company stated, pointing to improved sales trends despite continued market weakness. Thule also highlighted that its North American-specific bike carriers and truck racks are produced in the USA, helping mitigate tariff impacts.

Product Innovation and Recognition

Thule emphasized its continued investment in product development, with the company receiving ten new Red Dot design awards in June 2025, following seven IF Design awards in March. These recognitions spanned multiple product categories, reinforcing the company’s premium positioning.

The company also highlighted its success in the ADAC car seat test, Europe’s most recognized consumer test for child car seats. Thule’s Elm RWF model was the test winner in May 2025, following earlier success for its Maple and Alfi models in October 2024.

Strategic Initiatives

Despite challenging market conditions, Thule continues to invest in long-term growth initiatives. A key focus is supply chain efficiency, with plans to extend and automate the company’s warehouse in Huta, Poland. This SEK 450 million investment is expected to triple pallet capacity, eliminate external warehousing costs, and deliver annual cash savings of SEK 100 million when fully operational in 2027.

The company also outlined its "Focus 2025" strategy, emphasizing four key priorities:

1. Product development – maintaining a high pace of innovation with increased focus on attractive segments in North America

2. Category expansion – scaling up newly launched dog transportation and child car seat lines in Europe while growing the acquired phone mount business

3. Consumer visibility – enhancing brand exposure and expanding direct-to-consumer channels

4. Supply chain efficiency – targeting an additional SEK 200 million inventory reduction in 2025

Forward-Looking Statements

Looking ahead, Thule acknowledged that weak market conditions in North America and cautious consumer behavior worldwide are expected to continue. However, the company expressed confidence in its positioning, citing its global market leadership, premium products, innovation capabilities, and financial strength.

"We remain focused on investing to grow and hope that that pays off," said CEO Ankarberg, emphasizing the company’s long-term approach despite near-term challenges.

Thule plans to continue its high pace of product launches in 2025, with a focus on both upgrading bestsellers and expanding into newer categories. The company highlighted upcoming products including the Thule Force 3 cargo box, Thule XScape truck bed rack, and Thule Palm high-back booster seat.

With a trailing twelve-month revenue growth of 7.35% and a dividend yield of 3.57%, Thule maintains a balanced approach to shareholder returns while investing in future growth. However, investors will be watching closely to see if the company’s strategic investments can deliver improved profitability in the face of ongoing market challenges.

Full presentation:

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