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1. Company Snapshot

1.a. Company Description

Dometic Group AB (publ), together with its subsidiaries, provides solutions for mobile living in the areas of food and beverage, climate, power and control, safety and security, and hygiene and sanitation in the Americas, Germany, Australia, the United Kingdom, France, Italy, Sweden, the Netherlands, Canada, and internationally.The company offers climate control products, such as air conditioners, awnings, blinds, windows and doors, ventilation products, heaters, furnaces, and patio rooms and tents; food and beverage products, including refrigerators, cool boxes, cooking products, and accessories; and safety and security products comprising carbon monoxide detectors, security locks, safety handrails, safes, alarm systems, and gas detectors, as well as driving support accessories.It also provides power and control solutions, which include energy and lighting, marine control, and marine steering systems products, and control devices, as well as related accessories; and hygiene and sanitation products, such as toilets, pumps, hoses, bio-degradable cleaners, and smart electronic controls, as well as related accessories.


In addition, the company offers vessel controls, and fuel and system integration systems to the leisure marine industry; and marine blinds, screens, and soft furnishings for the leisure marine and yacht segments.Dometic Group AB (publ) provides its products for use in recreational vehicles, pleasure boats, workboats, trucks, cars, and others.The company was founded in 1922 and is headquartered in Solna, Sweden.

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1.b. Last Insights on DOM

Dometic Group AB's recent performance was negatively driven by declining sales, despite robust cash flow. The company's Q4 2024 earnings call highlighted a challenging environment, with sales declining due to decreased demand in the automotive segment. Additionally, the company's focus on product innovation and strategic cost-saving measures may not be sufficient to offset the decline in sales. A share buyback program was announced, which could potentially boost shareholder value.

1.c. Company Highlights

2. Dometic's Q4 2025 Report: A Challenging Year with Signs of Stabilization

Dometic's Q4 2025 financial performance was marked by challenging market conditions, with revenues experiencing negative organic growth of 3%. The EBITA margin was 6%, impacted by currency effects and increased labor costs. The earnings per share (EPS) was SEK 1.34, with an adjusted EPS of SEK 2.52. For the full year, sales were SEK 21 billion, with a total negative effect of FX for the year of 6% and 8% down organic growth. EBITA landed above SEK 2.2 billion, or an EBITA margin of 10.6%. The actual EPS came out at '-0.6698' relative to estimates at '0.1206', indicating a significant deviation from expectations.

Publication Date: Feb -08

📋 Highlights
  • Organic Growth Recovery:: Q4 negative organic growth of 3% improved from prior quarters, with Mobile Cooling driving Distribution segment growth.
  • EBITA Margin Resilience:: Q4 EBITA margin at 6% (underlying 6.8%), impacted by currency effects and labor costs, but outperformed prior year's 6%.
  • Restructuring Progress:: Global restructuring program achieved SEK 350 million in savings by year-end, with SEK 103 million cash outflow in Q4.
  • Free Cash Flow Impact:: Q4 free cash flow at SEK 20 million, with full-year free cash flow above SEK 1.4 billion despite currency headwinds of SEK 250 million.
  • Debt and Leverage:: Leverage ratio rose to 3.3x (vs. 2.5x target) due to lower EBITA, but debt maturity profile shows SEK 0.8 billion repayable in 2026, with potential early payoff if cash allows.

Segment Performance

The company's segments showed varied performance. Service & Aftermarket was down 3%, while Distribution returned to growth driven by Mobile Cooling. Land Vehicles had negative growth of 4% but showed growth in EMEA, while Marine returned to negative growth of 3%. Mobile Cooling had positive organic growth, indicating some signs of improvement.

Restructuring Program

The global restructuring program is running slightly better than expectations, with SEK 350 million in savings at the end of December and a cash out of SEK 103 million in Q4. The company expects to continue improving, with a focus on keeping costs under control and optimizing working capital.

Cash Flow and Leverage

Free cash flow was SEK 20 million, influenced by currencies and working capital. The leverage ratio ended at 3.3x, up 0.1x from Q3, due to reduced EBITA and lower net sales. The company focuses on protecting margins and reducing working capital, with a target leverage ratio of around 2.5x.

Outlook and Valuation

The company guides for low to mid-single-digit growth expected in 2026. Analysts estimate next year's revenue growth at 5.0%. With a current P/E Ratio of 30.16 and an EV/EBITDA of 8.21, the market is pricing in a certain level of growth. The company's efforts to reduce leverage and improve working capital are expected to contribute to its future prospects.

Currency Impact and Tariffs

The company is exposed to currency fluctuations, with a guide that if the dollar changes by +/-5%, it will impact EBITA by SEK 47 million. Tariffs have been compensated with price increases, and no changes are expected. However, the company is waiting for more information on potential new tariffs.

3. NewsRoom

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European Undervalued Small Caps With Insider Action For February 2026

Feb -09

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Dometic Group AB (DTCGF) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Jan -28

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3 European Stocks That Could Be Undervalued By 33.2% To 41.5%

Jan -26

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How Dometic Group's (OM:DOM) Cloud-Based Marine HVAC Launch Shapes Its Connected Boat Investment Story

Oct -10

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Siren Marine Collaborates with Dometic to Introduce Connected Boat® Cloud-Based HVAC Control

Oct -07

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BNP Paribas Primary New Issues: STAB Notice - No Stab - Dometic Group AB

Sep -05

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Stabilization Notice: Pre Stab Notice - Dometic Group AB

Sep -04

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MeatEater Hits the Road for Second Annual College Football Tailgate Tour

Aug -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Food & Beverage

Expected Growth: 3.5%

Dometic Group AB's Food & Beverage segment growth of 3.5% is driven by increasing demand for outdoor recreational activities, rising popularity of RV and camping lifestyles, and growing need for premium food and beverage solutions in the marine industry. Additionally, the segment benefits from the company's strategic acquisitions and investments in product innovation, expanding its market share and customer base.

Climate

Expected Growth: 3.8%

Dometic Group AB's 3.8% growth in the Climate segment is driven by increasing demand for energy-efficient and eco-friendly solutions, expansion in emerging markets, and growing adoption of electric and hybrid vehicles. Additionally, the company's focus on innovation, strategic acquisitions, and partnerships have contributed to its growth in the climate control market.

Power & Control

Expected Growth: 4.2%

Dometic Group AB's Power & Control segment growth of 4.2% is driven by increasing demand for electrification in the marine and mobile living industries, coupled with the company's strategic acquisitions and investments in digitalization and connectivity. Additionally, the segment benefits from the growing trend towards sustainable and energy-efficient solutions.

Other Applications

Expected Growth: 3.2%

Dometic Group AB's 3.2% growth in Other Applications is driven by increasing demand for outdoor and recreational products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, product diversification, and operational efficiency have contributed to its growth momentum.

7. Detailed Products

Climate Solutions

Dometic's climate solutions provide comfortable and efficient temperature control for recreational vehicles, trucks, and specialty vehicles.

Hygiene and Sanitation

Dometic's hygiene and sanitation products include toilets, showers, and sinks designed for recreational vehicles and specialty vehicles.

Power and Control

Dometic's power and control products include power converters, inverters, and electrical distribution systems for recreational vehicles and specialty vehicles.

Safety and Security

Dometic's safety and security products include alarm systems, cameras, and sensors designed for recreational vehicles and specialty vehicles.

Seating and Interior

Dometic's seating and interior products include seats, tables, and interior components designed for recreational vehicles and specialty vehicles.

Windows and Doors

Dometic's windows and doors products include windows, doors, and roof hatches designed for recreational vehicles and specialty vehicles.

8. Dometic Group AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dometic Group AB (publ) operates in the recreational vehicle industry, which has a moderate threat of substitutes. While there are some alternatives to RVs, such as camping or staying in hotels, they are not always suitable substitutes, especially for those who enjoy the RV lifestyle.

Bargaining Power Of Customers

Dometic Group AB (publ) has a diverse customer base, including OEMs, dealers, and end-consumers. While some customers may have bargaining power, the company's large customer base and diversified revenue streams mitigate this risk.

Bargaining Power Of Suppliers

Dometic Group AB (publ) relies on a network of suppliers for components and materials. While some suppliers may have bargaining power, the company's large scale and diversified supply chain mitigate this risk.

Threat Of New Entrants

The recreational vehicle industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The recreational vehicle industry is highly competitive, with several established players competing for market share. Dometic Group AB (publ) faces intense competition from companies such as Thetford, Norcold, and others.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.15%
Debt Cost 7.83%
Equity Weight 60.85%
Equity Cost 12.45%
WACC 10.64%
Leverage 64.34%

11. Quality Control: Dometic Group AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Games Workshop

A-Score: 6.1/10

Value: 0.7

Growth: 8.6

Quality: 9.0

Yield: 5.6

Momentum: 6.5

Volatility: 6.0

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A-Score: 5.8/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 8.0

Volatility: 8.3

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A-Score: 5.1/10

Value: 6.8

Growth: 5.2

Quality: 7.4

Yield: 4.4

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Volatility: 3.0

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A-Score: 4.9/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 3.8

Momentum: 4.0

Volatility: 6.0

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Thule

A-Score: 3.9/10

Value: 2.6

Growth: 6.0

Quality: 6.3

Yield: 3.1

Momentum: 1.5

Volatility: 4.0

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Dometic

A-Score: 3.8/10

Value: 7.8

Growth: 3.9

Quality: 2.5

Yield: 5.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.88$

Current Price

39.88$

Potential

-0.00%

Expected Cash-Flows