Hello. Good morning, everybody, to this Q1 report.

Welcome to sunny Stockholm, by the way. Wonderful that springtime is back.

We have the light back. Moving over to the highlights.

We see an increased uncertainty following both the tariff situation and the geopolitical tensions in the Middle East. We see already now oil prices being very, very high.

We see as well inflationary movements in terms of freight costs, in terms of raw material costs that will, down the road, have some kind of impact on consumer confidence. We continue to see retailers, dealers being very, very careful in building up inventories and ordering what they need.

At the same time, we see also differences across regions, and most probably, the region where we see confidence index being the lowest is in the American region. Looking at performance, we are very happy to communicate that finally, after many quarters of negative growth, we are standing at the same level as last year.

We are very pleased seeing the service and aftermarket coming back and showing a solid growth of 5%. Positive to comment that is everywhere.

We see the three regional businesses within Land Vehicles, and we see as well Marine everywhere also being positive from a service and aftermarket perspective. Distribution is slightly down, 1%, but Mobile Cooling being positive, which is good, and we see also that the sell-through for the Mobile Cooling business has been very positive during the first quarter.

In reality, the one that we are still missing is the OEM that ended up at 4% down versus last year, but very much due to the RV OEM in the American region. Perhaps even more positive is that both order intake and backlog continue to develop in a positive way.

Positive development on EBITA margin, ending up at 10.6% and really based on two different factors: on one side, we have a positive mix with service and aftermarket growing; at the same time as we also see the savings coming from the restructuring program continue to improve. At the same time, we have many product launches.

We have been launching products, especially on the Marine side and on the Mobile Cooling side during the quarter. In connection with the extra product development cost, we also have marketing costs to have successful launches for the new products.

Last but not least, improved free cash flow, even if it's negative, is quite a bit less negative than one year ago and totally in line with historical numbers. As a matter of fact, better than what we have seen the last 4-5 years in practice.

Leverage ending up at 3.4, which is slightly worse than one year ago, but following exactly the same historical pattern that we have seen due to obviously low invoicing levels in Q4 and low invoicing levels in Q1. If we move over to the figures, as I already commented, organic growth of 0 with negative impact from currencies of 9%, and then portfolio changes that continue to happen, delivering 1% in negative growth.

EBITA, 8% down versus last year, ending up at 10.6% in margin in comparison to 10.4%; and adjusted EPS of 86 öre in comparison to 88, very, very close now; and as I already commented, negative cash flow, but quite of an improvement in comparison to last year; and a leverage slightly higher than what we had one year ago. Looking at growth, Land Vehicles ending up at -1%, very much driven by Americas, 6% down; EMEA was positive, 2%; and APAC finally, -3%.

Marine positive, 2%. We had negative two quarters ago, positive, negative, positive again, we are hovering around the same levels as last year.

At the same time, we have a pretty good order intake. Mobile Cooling very similar to Marine, 1% positive, but also developing nicely on order intake.

Then Global Ventures, 7% down. Looking at the different sales channels, in reality nothing remarkable, no more that service and aftermarket is growing and by that becoming 30% of total business, while OEM continues to go down slightly, ending up at 38%.

Perhaps worthwhile to comment that RV OEM, that used to be 49% in 2017, stands today for 18%. Again, we are getting less and less exposed to the RV OEM market.

Looking at the different channels, positive evolution everywhere. I do believe that looking at the different charts, it's very, very clear that we see a positive trend getting now into neutral growth for the group, and hopefully we will see also OEM come into positive terms in the near future.

I would like to stay for a couple of seconds on this slide. What you can see, the gray line is manufacturing, the green line is registrations, and it tells you a little bit where the different inventories look like in the different markets.

Unfortunately, the inventories on Marine are much more difficult. We get production numbers.

The retail numbers include both own manufacturing in the US as well as imports, and that distorts the picture a little bit. If we go back to registrations on the RV side, we see that we suffer a major deterioration in the industry from 2022 to 2025, stabilized in the last couple of years, but not coming back to growth.

At the same time, we see also that there is balance between retail and manufacturing. At the same time, we saw Europe kind of postponing the drops simply because we had, as you may remember, problems with component delivery from the chassis producers to the OEM industry, which means that we still had pretty good years, 2022 and 2023, but we saw a major drop in the second half 2024 and a major drop in 2025.

Of course, when looking at Dometic's evolution the last couple of years and always commenting negative growth, what you can see is we got the hits in the US first; as the US was stabilizing, then we got Marine and we got as well Europe. That has been very much the main reason for this delay in coming into neutral territory and hopefully showing growth in the quarters to come.

Again, coming back to inventories, we are very much there on the RV side. On the Marine side, we still hear and read from retailers, in the US especially, that inventory is a little bit too high, while Europe looks far better.

By the way, we have seen growth on the Marine side in both Europe and APAC during the last couple of quarters. EBITA ending up at 10.6%.

Good progress on gross margins. It's very, very clear that the restructuring program is kicking in and showing improvements on top of all the other efficiency actions that we have taken.

We have an SG&A higher than one year ago, very much, as I commented, explained by the investments that we keep doing in product development everywhere, but especially in the Mobile Cooling and Marine area, which are reflecting not just on the product development cost, but also on the marketing cost in connection to the product launches. We see margin improvements in Land Vehicles.

We see that we are on neutral levels on Global Ventures, and we saw decline on Marine and Mobile Cooling. Looking at different segments, Land Vehicles, 1% down, with good growth in service and aftermarket, and again, decline on the OEM side, very much driven by the RV OEM side in Americas.

Strong margin improvement, 9%, with again, significant improvements driven by the restructuring program and all the other activities. We continue to invest, as we have commented many times, on product development.

Innovation is clearly the driving force behind organic growth, and that's what we are working for. Worthwhile to mention that we are still producing losses in Americas, but we see a major, major cut on those losses during the last 12 months.

Marine, positive 2% 2% growth, with high single-digit growth in service and aftermarket, a slight decline, very, very close now to neutral territory also on the OEM side. EBITA margins close to 18%, and the reduction is very much driven, again, by on one side delays on the price increases, time lag between price increases and the cost increases, and then of course all the uncertainties that we have just now with the tariff situation in the US.

At the same time, as we continue to invest, as I said, in product development, leading to new product launches and marketing costs. Mobile Cooling, 1%.

Here we see good development on the US market. We see slight deterioration on the European and APAC markets.

Margins at 5.7%, deterioration versus last year. We see a little bit of the same, that we have still time lags between cost increases and due to the new tariff situation and price increases.

Even here, we keep investing in generating growth moving forward. Lastly, Global Ventures, organic growth 7% down, with other global verticals continue to develop positively, at the same time as we see Mobile Power Solutions still negative, driven by the RV OEM.

That business is, to a high extent, linked to the OEM business. EBIT margins on a neutral level.

On one side, we see continue margin improvements on other global verticals, the same as we see some margin deterioration on Mobile Power Solutions, but totally speaking, neutral, since we are also adapting our SG&A costs to the new situation. Looking at sustainability, very good progress.

We feel proud of what we are doing in that territory as well, with injuries coming down, have been down now below one, the target of one, for a number of quarters. We see also female managers at a decent territory.

We would like, obviously, to improve even more, but we have seen a major progress during the last couple of years. We continue to invest in renewable energy in operations, and we are up to 44%.

Innovation, again, the major driver behind organic growth, up to 24%, we are very, very close to our target, 25%. Then we keep assessing our suppliers for direct material, and we will secure that we deliver as well on our targets.

Some of the recent launches: we launched at the end of Q4 a new brand, Vaeco, which is also not just a number of products, it's also a new business model where we are addressing major wholesalers, major distributors and implementing a totally different business model, generating higher margins at the same time as we are capturing volumes. It is clear that we see a new demand for older vehicles, and we are addressing that new demand that we have been seeing accelerating the last couple of years as a consequence, again, of the inflationary cost increases post-pandemic.

People are looking for lower-priced options, and we are addressing that. Positive reaction, very positive reaction, even better than we expected during the first couple of months.

Unfortunately, a little bit late, since we are already now in Q1, and customers are placing orders normally in Q4 for deliveries in Q2, and we launched the product in December. Again, so far very, very positive reaction.

Moving over to drinkware, another of the areas where we are investing, launching the first series of premium drinkware products, where we are addressing also modularity and delivering a lot of accessories, not just the bottles, but also a number of different options. We are expecting on one side, good growth and good margin evolution, but we are also expecting that this kind of product will reinforce our Dometic brand globally.

Moving over to a new series of rooftop tents. This is also the third series of rooftop tents coming from Dometic, addressing the new market with SUVs and pickup trucks.

As a consequence of all the product launches, we keep collecting awards in different areas. In this case, we are talking about Mobile Cooling with a high-quality and premium Dometic-branded products, both as hard coolers, as soft coolers as well, that we have been launching the last couple of quarters, and are starting to kick in as well on store.

Happy to report as well positive development on our restructuring program, the cost reduction program. You may remember, this program will generate 750 million on running rate at the end of this year.

We ended up Q4 last year at a running rate of 350. We added another 50 million in Q1, new running rate 400 million.

Cash out in the quarter achieving 20 million. With that, I would like to hand over to you, Stefan.

Thank you very much, Juan. Moving to the income statement, starting with our gross profit margin development, and this is really a very nice development that we have seen now for almost two years where we have had a continuous improvement of our gross margin.

It ends up with 29.6% in the quarter versus 28.7% equivalent period last year. That has then favorably been impacted by sales mix, but also the restructuring program, and then partially been offset by the fact that we have still a certain lag between price increases and cost increases, including tariffs.

There has happened a lot of things in the first quarter. We have had a decision by the Supreme Court in the US and making some of the tariffs illegal.

Then we have obviously had the escalating situation down in the Middle East, which has been starting to drive up input costs for our products. On operating expenses in reported currency, we are down, but in constant currency, we are up 5%.

There is two things to that. We obviously have effects from our global restructuring program, which is driving down the cost as expected.

Then we also have in the quarter some offset for increased product development as well as marketing related to product launches. You just saw a number of the examples here in Juan's presentation.

Looking at net financial expenses, which is on its way down as expected and driven by the gross debt reduction, which is going to continue here now in the coming quarters. Tax is on the same level as last year, and the effective tax rate is 33%, which is, as we have communicated before, affected by the deductibility of interest expenses in Sweden.

Moving on to cash flow summary, as Juan already mentioned, very nice to see that the free cash flow is actually quite a bit better than the same period last year. That we have the seasonality where Q1 is always our weakest cash flow quarter.

Now when we're moving into Q2, we are moving into the strongest one, and the same with Q3 is also a very strong cash flow quarter here. In the quarter, we have seen working capital, on the one hand, been impacted by higher inventory.

It's of course measures to make sure that we have the inventory to fulfill the demand. Then we have seen on the other side, improvements in trade receivables and payables.

Mention was that the cash out related to the restructuring program in the quarter was 20 million. Program to date, we have 256 million in payout, and as you remember, we have talked about it should be totally 400 million, and we still stick to that.

There is 140 million approximately to go, which will happen in 2026. Then capex is a bit lower than the same period last year, and we continue to prioritize investments in fixed assets.

We also have a new model, which actually means that we have less needs to invest in fixed assets going forward. If we look then on interest expenses paid, they are down, as well as tax paid, so that is also helping to drive the free cash flow.

Moving on, yeah, here you can see what Juan was alluding to, that, yeah, -192 million in free cash flow stacks up quite well in a historical comparison here. I'm happy with how we continue to manage this well.

If we look on working capital the last 12 months, we are down to 20 25%, which is 3% units better than the same period last year. We are 26% in the quarter.

Inventory balance, 5.2 billion in constant currency, that is then up versus last year, but as I mentioned, it's really to make sure that we can keep the service level to our customers here. Number of days, 121 days, and that's 10 days less than the same period last year.

As you can see, there is still potential to continue to drive that down towards around 100 days. On accounts payable, it's the movements there is very much mix-related, where do we have the major sourcing in the quarter, a little bit more China, longer payment terms there.

Inventory already talked about, and accounts receivable, you see that the days sales outstanding is starting to come down, which I would also expect due to the AR program that we have been putting in place. Moving over to capex and research and development costs.

We ended up 72 million in the quarter, equivalent to 1.6% of net sales. As I said before, we are making clear priorities, but we have also created a model where we underline it to invest less in machinery and equipment.

On the R&D side, we are now on 2.9%, 132 million in the quarter. We are continuing to prioritize to invest in product development.

We can also see that on our innovation index, as mentioned before, it's up to 24% now in Q1, and that is something that we will also continue to prioritize going forward. Moving on, if we take a step over to our debt maturity profile, the total gross debt is now 15 billion as of the end of Q1.

We have an average maturity of 2.5 years, and then we have an undrawn revolving credit facility of €300 million maturing in 2028. Then we will pay back the 2.2 billion in the remaining 2026 Eurobond here tomorrow using cash on hand, and then we also have a plan to repay the 0.8 billion, which is a private placement that we have maturing in September 2026.

With this, you will see the gross debt continuing to come down and also the net debt driven by the free cash flow that we are expecting to generate during 2026. Looking at the leverage ratio, it ended at 3.4, as was mentioned before.

It's all the different components that is very slightly all contributing to take it up from 3.3 as we had by the end of Q4. This is not unusual that that leverage ratio is moving 0.1 in the first quarter.

From now, we are going to obviously come into the cash flow strong part of the year, and the leverage will then start to move down here and in Q2, Q3 especially. With that, I will hand over to you, Juan, to make the summary.

Thank you, Stefan. Summarizing Q1: very, very happy that we are leaving the negative growth behind us, and that we see as well improving gross margins and EBITA margins.

Positive order intake and order backlog, that continues to develop in a positive way. We see a sales mix, with service and aftermarket showing solid growth, with improvements in free cash flow.

Leverage that ended up at 3.4 versus 3.3. At the same time, as we see as well, still today, low consumer confidence, driven both by the volatility on the tariffs and, nonetheless, by the new outcome situation in the Middle East.

Due to that facts, we decided to withdraw the dividend, as on the 12th of March. Already at the time, we communicated that the main reason was the risk that we saw moving forward.

We also commented that it was not a profit warning, and hopefully you realize as well when looking at the numbers that what we said, we are not collapsing, became the reality as well. Again, we feel good about Q1.

We feel good about the order intake and the backlog. Still, we don't know how the ongoing war in the Middle East is going to have as an impact in Q2 or Q3.

The theory is obviously that we are moving into Q2 in a positive manner with a stronger backlog. Then we will see what happens during these three months.

We are still of the opinion that we will see organic growth in 2026, but of course, we are also very mindful of the situation in the Middle East and the impact on, again, oil prices, inflation, interest rates, and consumer confidence. No matter what, we continue to invest strategically.

We see product developments and innovation index coming up. Of course, with that, we also have some extra marketing costs that we are kind of happy to spend, since we are starting to move into a growth phase again.

We are also very pleased with the way the restructuring program is developing over time. With that said, I think that we can move into the Q&A session.

Thank you for taking my questions. I have two.

Maybe just starting with the demand outlook. Mid-March, you were quite cautious, Juan, about the demand prospects, especially in the light of Middle East conflict, yet you finished Q1 with flat organic growth for the quarter.

I wanted to ask, was there anything that really surprised you to the positive? Also, maybe a follow-up on that, you have built some inventories in the quarter.

Should we interpret it as a sign of you expecting higher sales in Q2?

Absolutely. No surprises, Agnieszka.

Good morning, by the way. No surprises.

Again, the communication on March 12 was much more due to what we what could happen due to the war. It's very, very seldom that you see the war starting day one, and then inflation, interest rates, and consumers stopping to buy.

You see that normally after a number of months. I think we were very clear at the time of the communication, and we tried to clarify even a couple of days after after the announcement that we were not collapsing, and I think that this is what we proved this time.

We are happy to see the order intake and the backlog strengthening even more in in Q1. Then the question, and I think that at least our takeaway is that we take it in a very positive way, at the same time as I also believe that many people in the value chain are expecting to see higher prices down the road as a consequence of the higher inflation.

Since we are at the beginning of Q2, it might be that we have an effect of people forward buying, to say. At the same time, you can take it in a negative way, you can take it in a positive way.

Nobody wants to build up inventories. People are super careful on building up inventories.

Again, we are starting the quarter If I'm coming to your second question, we are starting the quarter with a stronger backlog. In theory, we should see growth.

We only have one month of backlog approximately. Yeah.

Four to six weeks, yes. Four to six weeks.

Yeah.

Okay. Perfect.

Thank you. Then my second question is on the input costs for you.

We do see some inflation in polymer prices, maybe if you could please remind us about your plastics exposure, and maybe tell us how quickly this higher commodity prices are affecting you. Do you hedge, and what kind of price increases would you need to implement to neutralize the impact?

Of course that, it's not just plastics. Everything is just now going up, and we see also moving targets.

Of course that we have been working very, very hard during the last few weeks, and we are implementing price increases as we speak. We have not seen any major effect in Q1 simply because we are sitting on inventories.

It is clear that suppliers are knocking on the door, and we are already now talking to customers. Our intention is, as usual, to cover up for the potential cost increases.

The cost increases will come. It is just a question of time.

Just now, obviously, the target is to push back as much as we can, at the same time as we are sitting on inventories. At the same time, we also need to act very, very fast and start discussing with our own customers as well.

Thank you.

You're welcome.

Yes. Good morning, Juan and Stefan.

Sorry if I am maybe repeating something that you already said. I was late into the call.

I hear you in terms of order intake and order backlog heading into Q2, and what you said about your announcement on the 12th of March. Am I getting it right that for the month of March, you didn't really see any deterioration?

Cuz I assume that you did get hit by the winter storms in the US in January and February, which caused some production shutdowns.

At the same time, I do believe that you have one side with storms, which is totally right. At the same time, we also see that if we are especially talking about the RV industry in the US, we see that retail was also down.

I believe that we need to be a little bit careful in the way we are interpreting the weather impact in the first two months. Again, if we were just talking about production, I would agree with you.

Of course, when you see that RV retail is also down, that customers are careful, then I believe that we need to wait for some more time to understand. As production was down 11%.

If you look at the numbers, retail in February, they were down 22%.

Mm.

Q1 was good. March order intake was good, and backlog was even better.

Our backlog strengthened in March.

Good. Then totally different question maybe, but in the recent days there has been confirmations from both LCI and Patrick Industries that they are talking about a possible merger.

Who knows if that's going to happen or not, but if that happens, do you see that theoretically, at least, as an opportunity for you guys in the US especially to regain some shares while they are occupied by a possible merger and internally focused and so on?

Of course that what you're saying will happen anyway, right? It takes a while to integrate, if that happens, it will take some momentum from the organization.

At the same time, I would like to point out, we are competing with Lippert. Basically, we are not competing with Patrick.

Patrick and Lippert are competing with each other. The only area where we are competing with Patrick, is that Patrick acquired a company two years ago called RecPro, turning $80 million.

If we are talking about OEM, we are competing very, very little with them, for not saying nothing. On the aftermarket, it's very, very limited as well.

I don't see that that will change. I think might change in the short term, as you said, because, of course, it takes a lot of attention from the organization to integrate companies, and we are talking about two major companies, this is not just the one absorbing the other.

I don't expect any major impact on the long term, simply because we are not competing with Patrick.

Okay. Good.

Good. Thanks.

Then maybe a very detailed question for Stefan. Other current liabilities are up a bit versus the end of the year despite currency going in the other direction.

Is there anything in that number that's related to the court case or further reservations or anything?

The very simple answer to that is no.

No. Okay.

Good. That's all for me, and I just want to thank Stefan as well for good collaborations through the years and good luck.

Thanks a lot, Daniel. Appreciate it.

Yes, good morning. Thanks for the presentation.

Perhaps you'd mentioned it, but I didn't get it. What do you expect as cash payout for restructuring in 2026?

Yes, P&L impact versus cash impact,

and the

same for 2027, if there is.

Yeah. As I mentioned before, we have said in the past 400 million in total cash payout of the program.

We have, program to date, paid out 256 million, so that means that we have 144 million to go for 20, and it's going to come in 2026. I don't expect there to be anything left for 2027.

Then in terms of saving, as the program in total should generate 750 million in savings. We should be on a run rate jumping into 2027 on 750 million.

We reported now after Q1 that we are on 400 million in run rate savings. If we overlay that with our plans, we feel that we are absolutely on track to achieve that.

Thank you.

I could add as well that in 2026, what is going to happen is that it's going to be a little bit more back-loaded than in 2025. The reason for that is that we have some major activities that we are working on, but we will see the effects later on in the year.

Thank you. Good morning, team.

Most of the questions I had have been asked, but I have one on Marine. I guess when we listen to all the boat manufacturers, it's a little scattered view, I think, with the high-end manufacturers being quite optimistic and talking about higher backlogs and so forth, whereas the mass market is more cautious.

First, do you share this view, and second, how are you positioned towards this backdrop in that case?

I would agree that if you go back to the last few years, first we saw what Americans call for blue-collar boating coming down dramatically. Then it took about 18 months before we saw the bigger boats coming down quite a lot.

Then we saw the low-priced boating stabilizing about 8 months ago, and now we see the bigger boats moving upwards really during the last, I would say, 6 months. It feels good.

Order intake has been promising, at the same time as when you read all the information about American Marine retailers, they are still cautious. I simply believe that we need to wait a little bit more, because we might be seeing what we saw with the American RV industry a couple of years ago, that it went down, manufacturing started to build up, and retail didn't come back, and then the manufacturing came down again.

We are kind of hovering about the same levels that we were manufacturing 2 years ago, if you look at the RV industry. I believe that we need to see this for some more months before we can say now it is moving.

The fact is that our order intake has been growing, from that perspective, we feel positive, but I would like to understand a little bit more in one or two quarters that we see that consistency.

On top of that, we also feel that the inventory situation is still not on an optimal level by the dealers in North America,

but

it has certainly improved.

That's true. That's true.

Then that's very much on the American market. If we are looking at Europe, Europe looks good, and we had high-digit positive growth in Q1, and even APAC looks good.

Having said that, obviously the US market stands for 75% of the global markets. Improving, we are still not there, but it is improving clearly.

Great. On the positioning, could you remind us of where you are?

We are very well positioned in steering systems. We are very well positioned in full systems.

We are very well positioned in ACs. I would say that those are the three main categories.

That's on the OEM. If we see the aftermarket side, we have seen very nice growth in Q1.

We saw also growth in Q4. Aftermarket has been showing positive numbers now for a couple of quarters.

Again, from an OEM perspective, we have very strong positions. Then we need to keep in mind as well that the market is much more fragmented, obviously, and that we don't have, what can I say, any Dometic look-alike offering, to put it in some way.

Perfect. Thank you so much.

You're welcome.

Thank you.

Yes, me again. Just two follow-ups and another detail question I forgot last time to Stefan.

You're repaying this bond tomorrow, 2.2 billion. Could you give us any indication of how much that will change your financial net on a quarterly basis going forward?

That is running with a financing cost of 3%.

You were getting basically just 1 or 1.5% on the cash that you held?

Sometimes a little bit more, actually.

Maybe a percentage point or a little bit more maybe in positive impact on the financial net, is that fair?

Yeah. We are on 4.2, 4.3% on average cost of our portfolio right now, this will take it up a little bit, but in absolute terms, as you are after, it will go down, and it will continue later in the year when we have the 750 million in private placement that we are planning to pay back as well.

Exactly. Okay.

Good. Then, I guess you already touched upon it, but I missed it as I missed part of the call.

Any details on the European market on the RV side? You grew in the quarter.

Was that both OE and aftermarket? What was the momentum in the quarter?

We see the OEM business evolving in a positive way. Registrations across Europe were very positive, I have to say, and we see order intake as well being positive for us now for a few months.

I'm optimistic. Even the service and aftermarket has been improving lately, absolutely.

If I think about different geographies, it's clear. I feel far more optimistic about the RV and the Marine industries in Europe that I feel about the US market.

I see US consumers showing much lower consumer confidence than the European ones. Europe is not flying, don't get me wrong.

Again, inventories are gone, manufacturing are starting to build up, service and aftermarket is moving also into positive territory. What you see on the American market, that inventories are relatively low, but retail is still negative as a consequence of consumers entering the stores, but not pushing the button.

As far as that doesn't happen, of course, it will be slow movements.

Yeah. Thank you.

Good luck. That's all for me.

Thank you.

Thank you, Daniel.

Thank you. I have two follow-ups.

Maybe starting with your SG&A development. You have quite good progress on the gross margin, but now with the SG&A cost being higher, much of that benefit is kind of disappearing or fading away a bit at least.

Could you just tell us about your investments in marketing and product development? It's all for good reasons, but how would you evaluate the success of your initiatives there?

How much these new products should add to your growth? Also, should we expect this kind of cost to be elevated for the coming quarters?

I believe that we will see that cost, especially in those two segments, being higher for another one or two quarters, and then they will be coming down. At the same time, as I said, we have been investing quite a bit on product development.

We believe that is super important. We have been preparing ourselves for a growth phase, and to develop the products, if you are not launching, doesn't give you a lot.

At the same time, as Agnieszka, we are trying to reinforce the B2C side. The B2C side, from a marketing perspective, is simply higher cost.

At the same time, it's also bringing higher margins. I believe that you need to see the combination, gross margins and SG&A, and hopefully we will be showing a positive balance moving forward.

Thank you. Then my second follow-up is on the Marine business.

You grew organically by 2% in the quarter, but the operational leverage was quite low, with EBITA still falling 17%. Can you just remind us what was the driver behind the lower earnings and how should we think going forward about this earnings progression in Marine?

The main issue in the Marine business is obviously that we are producing in Canada. We have a situation with tariffs, as and things are changing on continuous basis.

At the same time, you have also some time lag between the cost increases and what we are provisioning on tariffs and potential tariffs and the price increases that we are applying. It's very much time lag.

We should expect that to improve moving forward.

Could you just quantify the tariffs you're paying on the Marine side, ballpark?

I don't have that number on top of my mind.

No, we don't have that available right now, but we obviously know what we are paying,

but it's more

with what has happened now in the first quarter where the Supreme Court were declaring some of them not appropriate. They're obviously impacting the dialogues with some of the customers.

It is a challenging environment to operate in in terms of this, where things are changing very, very frequently.

It is a challenge because no customer, that's valid also for us when we are the customer. You get crazy when you get new price list every second month.

That's the reality that you need to play just now, right? We implemented new prices as late as 1 month ago, that we are not seeing obviously the effects on the Marine side.

Yeah.

Understood. Thank you.

We have clearly, Agnieszka, you are totally right, we have a time lag in the Marine side between the tariff situation and the price increases. Again, as late as 1 month ago, we applied new price.

Plus

what we talked about before in SG&A investments, especially in product development.

Yeah.

Absolutely.

Thank you.

You're welcome.

We have a few questions from the webcast audience that we can take now then. The first one relates to the backlog.

How did we see it change during the quarter? Then, what's the typical maturity in the backlog?

Good progress in January, flattish in February, better in March again. Normally, we are not an industrial, right?

Our backlog is somewhere 4 to 6 weeks. We are starting the quarter two in a stronger situation that we were starting Q1.

Again, we cannot take any conclusions on how May or June will look like. The starting point is positive.

Thank you. Then there's a question on leverage.

Do you stick to the target of 2.5? What's the fair expectation of the leverage evolving towards this 2.5?

We can absolutely confirm that we stick to the target of around 2.5. We are now coming into two strong cash flow quarters here, my expectations are that we are going to move towards 3 and potentially even slightly below, but I don't foresee that we are going to achieve the around 2.5 during 2026.

Finally, a question on capex. There was a mention of lower capex need going forward.

Can you please elaborate on that?

As we have been running the different kind of restructuring programs, we obviously have created something where we have been outsourcing to a higher degree than what we have done before, so that is one driver. Then just by the fact that we have fewer factories as we have been closing factories during these programs, we have gone from 31 factories down to 22 now.

It's obviously also reducing the need for capex in machinery and equipment.

It's a logical consequence. It's been very much on purpose since we introduced the new strategy.

We wanted to have a similar level of capex, but the profile of the capex was going to change by investing less in factories, maintaining factories, investing less in machinery, but investing more in tooling in connection to innovation. That's an important one.

Good, that's it from the webcast audience then. Back to the operator, please.

So.

Thank you. Andreas with SEB here.

Back to the leverage question, you're targeting 2.5 times, you say. How comfortable are you with that given the cyclicality of the business?

Wouldn't you consider even a lower level would be more suitable? That's my

The target is expressed around 2.5, right? In certain times it could be below 2.5, in some other situations it could be on 2.5 or even slightly above.

Depending on where we are in the cycle, I can agree with your comment. Typically historically, we have been deleveraging somewhere in the neighborhood of 0.6 times per year.

Now when things are starting to, yeah, it's maybe difficult to talk about normalization, but a bit more stable, I would still see that we still have that deleveraging potential in our model.

I think things also change over time. Keep in mind that we moved from 2 to around 2.5 at the time when the market were growing, when everybody was asking Dometic, "Guys, isn't this the moment to grow additionally by acquisitions?"

The market turned very, very sour. We have been fighting super hard to come down to around 2.5, and once we are approaching to 2.5, then we will discuss whether it is the right target or not.

Just now, we are so far away from 2.5 that we have a clear target to reach around 2.5.

Yeah.

I think it's super important that from our side, we understand the situation, we are working extremely hard, and again, Financial targets change over time, but this is not the time to discuss a change. This is the time to get into the financial target.

Yeah. Thank you.

Earlier, I think it was a year ago, you talked about potential divestments or exits in certain categories. Where do you stand today or where does your thinking stay today?

Thank you.

The same: working, but the market has not been very, very positive for divestments either. It's clear that we have been talking, we have been out to the market with a couple of assets, and we have been very, very close to completing one of the deals, and then we have the famous Liberation Day, and then things change overnight.

The willingness of potential buyers to invest at that moment changed. We are working very hard, and hopefully, as the market stabilizes, it's going to be a little bit easier to divest those assets.

We continue to work on that. Again, the environment has not been the appropriate one.

No, and

I also think worthwhile to mention in here is that for this to make full sense, there is a strategic assessment, of course, but that it should also make financial sense. We need to get a certain valuation, and it's not a fire sale in itself, so that's obviously a part of it.

Okay. Then lastly, on the cost-saving side, what remains, and what kind of cost savings remain?

Thank you.

We have a number of projects that are just now ongoing. As you may understand, this kind of decisions are very, very sensitive.

You don't want to communicate before you are ready to communicate. That's why I commented earlier today that they are going to be back-loaded.

We are working just now on the preparations, making sure that everything is going to work out, and we will communicate the different steps as they are happening in connection to these quarterly reports. You don't want to get people concerned unnecessarily.

Great. Thank you so much.

You are welcome.

Thank you very much, all of you, for attending the call, and for showing interest in how Dometic is evolving. I would also like to take the opportunity to thank Stefan for these years.

It has been a tough environment. I believe that you have contributed in a great way to our development, even if the times have been very, very tough.

Thank you very much, and all the best in the future.

Thank you very much for these kind words, Juan.

For all of you, thank you, and hopefully we'll see you soon. Bye.

Bye-bye.