Thule Group AB (publ) (THLPF) Q2 2025 Earnings Conference Call Transcript

Thule Group (OTCPK:THLPF) reported Q2 2025 sales of SEK 3.4 billion, achieving 16% growth year-over-year on a currency-adjusted basis, though organic growth was a modest 1.5%. The company navigated a persistently tough market, particularly in North America where sales declined 3%, while Europe saw a 4% increase, signaling resilience and an improved growth trajectory compared to Q1 despite ongoing macro challenges.

Analysis

Thule Group reported mixed but stabilizing results for Q2 2025, navigating what management describes as a persistently tough market. Total sales reached SEK 3.4 billion, marking a significant 16% year-over-year increase on a currency-adjusted basis. However, this headline figure is tempered by a modest organic growth of just 1.5%, indicating that non-organic factors or prior-year comparisons are major contributors to the reported growth. A clear regional divergence persists, with Europe demonstrating resilience through 4% growth, while North America remains a weak point, posting a 3% decline. Despite the contraction in North America, management noted this represents a significant improvement from Q1 and that overall market conditions are no longer deteriorating. This suggests a potential bottoming-out phase, providing a cautiously optimistic outlook despite ongoing weakness in retail and consumer demand.

Key Decisions for Investors

• Investors should scrutinize the drivers behind the significant gap between the 16% currency-adjusted sales growth and the 1.5% organic growth to assess the quality and sustainability of the reported top-line performance.
• Monitor future performance in the North American market closely, as a turnaround from the current 3% decline could signal a significant catalyst for the stock, while continued weakness remains a primary risk factor.
• Consider management's commentary on market stabilization as a cautiously optimistic signal; while the consumer environment remains weak, the worst of the downturn may be passing, potentially justifying a neutral to slightly bullish stance depending on risk appetite.