Sweden's Dometic Q2 operating profit misses on bad debt expense, higher material costs
Sweden's Dometic Q2 operating profit misses on bad debt expense, higher material costs
Overview
Sweden outdoor tech firm's Q2 sales fell 5%, a slight miss versus analyst expectations
Q2 EBIT missed analyst expectations, impacted by bad debt expense and higher material costs
Company extended global restructuring program, incurring SEK 101 mln in related costs
Outlook
Company extends Global restructuring program, expects annual run-rate savings of SEK 150 mln by mid-2027
Company says further restructuring measures may be taken depending on market development
Dometic sees continued weak demand and elevated uncertainty in RV and Marine markets
Result Drivers
SERVICE & AFTERMARKET GROWTH - Growth in higher-margin Service & Aftermarket sales channel supported gross margin and offset weak demand in other segments
BAD DEBT EXPENSE - Earnings were impacted by a SEK -52 mln bad debt expense related to the Chapter 11 filing of West Marine
HIGHER INPUT COSTS - Higher direct material and freight prices weighed on profitability
Company press release: ID:nWkr8qtPpB
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Miss* | SEK 5.97 bln | SEK 6.004 bln (4 Analysts) |
Q2 Adjusted EPS |
| SEK 1.27 |
|
Q2 EPS |
| SEK 0.75 |
|
Q2 Net Income |
| SEK 240 mln |
|
Q2 EBIT | Miss | SEK 513 mln | SEK 637.75 mln (4 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Dometic Group AB (publ) is SEK45.00, about 80.1% above its July 13 closing price of SEK24.98
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)