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Introduction & Market Context
Thule Group AB (STO:THULE) presented its Q2 2025 results on July 15, showing resilience in a challenging market environment. The Swedish outdoor equipment manufacturer saw its stock rise 4.5% to SEK 271.4 following the presentation, continuing its recovery from the 52-week low of SEK 218.4 reached after disappointing Q1 results.
The company has been navigating weak market conditions, particularly in North America, while continuing to focus on product innovation and operational efficiency. This quarter’s results suggest that strategic changes implemented in the North American market are beginning to yield positive outcomes.
Quarterly Performance Highlights
Thule reported Q2 2025 sales of SEK 3,403 million, representing a 16% increase compared to the previous year when excluding currency effects. Organic growth was 1.5%, with Europe showing stronger performance at 4% while North America remained negative at -3%. Reported growth reached 9.8%, though this was offset by a negative currency effect of 5.9%.
As shown in the following chart, Thule has maintained a consistent growth trajectory in both net sales and EBIT over the long term:
The company’s gross margin improved to 46.3% from 44.4% in the same period last year, driven largely by the contribution from Quad Lock, which Thule acquired in 2024. However, adjusted EBIT margin decreased to 21.6% from 23.6%, which the company attributed to earlier phasing of costs related to product launches.
Cash flow from operations reached SEK 774 million, down from SEK 879 million in Q2 2024, with the company making progress on its inventory reduction target of SEK 200 million for 2025.
The detailed income statement reveals the financial performance across key metrics:
Regional Performance Analysis
North America, which represents 25% of Thule’s sales, has been a challenging market for the company. However, the Q2 results suggest that strategic changes implemented in the region are beginning to show positive effects. After experiencing a 13% decline in Q1 2025, North American sales improved to just a 3% decline in Q2.
The company highlighted several initiatives that contributed to this improvement, including a new dedicated sales organization, focused growth investments in bike carriers and pick-up truck accessories, and price increases to offset tariff impacts. Thule also announced plans to launch the new Thule Xscape truck bed rack in Q4 2025, further strengthening its position in the North American market.
As illustrated in the following slide, Thule is focusing on the growing pick-up truck segment in North America:
In Europe, Thule continued to perform well with 4% organic growth, driven by new product introductions and strong market reception for its expanding product categories.
Product Innovation and Recognition
Product innovation remains a cornerstone of Thule’s strategy, with the company receiving significant recognition for its designs. In Q2, Thule was awarded ten new Red Dot design awards, adding to the seven IF Design awards received in March 2025.
The company’s expansion into the child safety category has been particularly successful, with Thule Elm RWF winning the prestigious ADAC car seat test in May 2025. This follows previous wins for Thule Maple and Thule Alfi in October 2024, positioning Thule as a leading brand in this category.
The following slide showcases Thule’s success in the European car seat market:
Thule’s product portfolio performance varied across categories in Q2 2025:
- Sport & Cargo Carriers: +3% net sales, driven by new products
- RV Products: +4% net sales, despite weakness in the RV industry
- Active with Kids & Dogs: +1% net sales, with growth in new categories offsetting decline in bike-related products
- Bags & Mounts: -21% net sales, but +169% including Quad Lock
The Quad Lock acquisition has been particularly successful, with 15% organic growth and now representing 67% of the Bags & Mounts category year-to-date.
Strategic Initiatives
Thule outlined several strategic initiatives aimed at driving long-term growth and improving operational efficiency. A key focus is the extension and automation of the company’s warehouse in Huta, Poland, which will triple pallet capacity, eliminate external warehousing costs, and optimize logistics flows.
This investment, with a capex of approximately SEK 450 million between 2025-2027, is expected to generate annual cash savings of SEK 100 million (with full effect from 2028), inventory reduction of SEK 80 million, and an annual EBIT impact of SEK 75 million.
The following slide details the supply chain efficiency improvements:
The company also emphasized its continued focus on product development, with a high pace of launches planned for 2025. These include upgraded versions of bestsellers like Thule Force 3 and Thule Easyfold 3, as well as innovations in core categories and scaling up of newer product lines.
Forward-Looking Statements
Looking ahead, Thule outlined four clear priorities for 2025 to drive long-term growth: product development, expansion into more categories, increased consumer visibility, and supply chain efficiency. The company remains confident in its ability to leverage its strengths despite challenging market conditions.
The cash flow statement shows working capital improvements, particularly in inventory reduction:
Thule’s net debt position remains manageable, with a Net Debt:EBITDA ratio of approximately 2.0 for Q2 2025:
While the company did not provide specific guidance for the remainder of 2025, the presentation suggests a continued focus on operational efficiency and product innovation to drive growth in a challenging market environment. The improvements in North America and ongoing inventory reduction efforts indicate that Thule’s strategic initiatives are beginning to yield positive results, positioning the company for potential recovery in the second half of the year.
Full presentation:
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