Thule Group reported that operating earnings on an adjusted basis grew 27.7 percent in the fourth quarter due in part to benefits from the Quad Lock acquisition, price increases and cost efficiencies. Sales were flat on an organic basis, improving from a 4 percent decline in the third quarter, with newer products offsetting declines in Sport & Cargo Carriers. North America’s sales were down again but less than recent quarters.

Fourth-Quarter Results
Net sales for the fourth quarter amounted to SEK 1,835 million ($206 million), representing an increase of 9.4 percent, of which 19.9 percent was attributable to the acquisition of Quad Lock and negative 10.4 percent to exchange rate fluctuations.

Thule, Inc. reports in the Swedish krona (SEK) currency.

Gross margins in the quarter improved to 44.9 percent from 41.6 percent, mainly due to the acquisition of Quad Lock, but also to price increases, efficiency improvements, and a better product mix.

Operating income amounted to SEK 83 million against an operating loss of SEK 35 million in the year-ago quarter. Adjusted to exclude transaction costs related to the acquisition of Quad Lock, the year-ago adjusted operating income was SEK 65 million. The acquisition of Quad Lock contributed positively to operating profit for the quarter. Excluding the acquisition of Quad Lock, gross income has been negatively affected by exchange rate fluctuations on net sales, while sales and administrative expenses are slightly lower compared to the previous year, mainly due to lower product development costs.

Net profit for the fourth quarter amounted to SEK 21 million against a loss of SEK 37 million in the prior-year Q4 period.

Full-Year Results
Net sales for the year amounted to SEK 10,429 million, corresponding to an increase of 9.3 percent, of which 15.4 percent was said to be from acquisition and a negative 4.8 percent from exchange rate fluctuations. Organically, sales decreased by 1.3 percent.

Adjusted operating income amounted to SEK 1,671 million, up from SEK 1,622 million in Q4 2024. Adjusted operating income reportedly increased due to the acquisition of Quad Lock but was said to be negatively affected by weak organic sales growth, higher product development costs, and exchange rate fluctuations.

On a reported basis, operating income amounted to SEK 1,640 million in 2025, compared to SEK 1,522 million in the prior year. The latest year includes a non-recurring charge of SEK 31 million in the second quarter related to the restructuring of the North American operations. In the fourth quarter of the previous year, operating income was charged with a one-time item for transaction costs related to the acquisition of Quad Lock, amounting to SEK 100 million.

Net income for the full year amounted to SEK 1,114 million compared with net income of SEK 1,122 million a year ago.

Sales Trend By Region  

Europe net sales amounted to SEK 1,097 million in Q4, up 6.4 percent y/y on a reported basis. Sales increased by 5.5 percent for the full year. Organic sales increased by 2.3 percent in the quarter and by 0.4 percent for the full year. Thule said, “The market remains cautious, with restrained retailers and consumers. Growth for the year was driven by Sports & Cargo Carriers and RV Products.”

North America net sales amounted to SEK 485 million in the quarter, up 1.6 percent y/y on a reported basis. Sales increased by 8.5 percent for the full year. Organic sales decreased by 3.5 percent in the quarter and by 6.1 percent for the full year.

Thule said, “The market remains weak. However, Thule’s sales trend has gradually improved during the year. Sales increased in Active with Kids & Dogs, while Sport & Cargo Carriers declined. The development in Canada was better than in the US.”

Rest of World region net sales amounted to SEK 253 million in Q4, up 49.1 percent due to the acquisition of Quad Lock. Sales increased 55.7 percent for the year. Organic sales decreased 5.4 percent y/y in the quarter and by 3.0 percent for the full year.

Thule said, “Sales in South America showed better development during the year than sales in Asia.”

Sales Trend Per Product Category

Sports & Cargo Carriers
Sales in Sport & Cargo Carriers declined 4 percent organically in the fourth quarter and by dipped 1 percent for the full year.

Thule said, “Several products have been launched in upgraded versions, which have contributed positively to sales for the year. Sales have developed better in Europe than in North America.”

RV Products
RV Products (Recreational Vehicles) sales increased 10 percent organically in the fourth quarter and grew 4 percent for the full year.

Thule said, “The market has been going through a weaker period for several quarters. Despite this, Thule has shown growth, driven by new products. In the fourth quarter, sales to manufacturers (OE) increased for the first time in over a year. Earlier in the year, growth was driven by sales to aftermarket retailers. RV Products accounted for 17 percent of total sales for the year. The European market accounts for approximately 94 percent of sales in this product category.”

Bags & Mounts
Bags & Mounts sales increased 146 percent y/y during the year, driven by the acquisition of Quad Lock. Organic sales remained unchanged during the quarter and decreased by 10 percent during the full year. Quad Lock accounted for 68 percent of total sales in the Bags & Mounts business.

Thule said, “Quad Lock has continued to develop its market-leading position and increased its organic sales by more than 15 percent in the fourth quarter and by approximately 15 percent for the full year. Sales of bags declined during the year. Bags under the Thule brand performed better than other brands.”

Active with Kids & Dogs
Sales increased by 6 percent organically in the fourth quarter and decreased by 2 percent for the full year.

Thule said, “The two new categories, dog transportation and child car seats, have performed well and grown rapidly during the year. All terrain- and running strollers have also grown rapidly. Sales declined for several bicycle related products, driven by cautious retailers. Sales through Thule’s own channels (DTC) increased for all product areas within the category. Active with Kids & Dogs accounted for 11 percent of total sales during the year.”

CEO Commentary
The quarterly statement by Mattias Ankarberg, president and CEO, follows:

Increased Sales and Profitability

In 2025, Thule once again increased both sales and profit, despite a challenging business environment. We have also continued to invest in the future and our newest product categories are growing rapidly. With our new focused priorities, we are well positioned to achieve our new financial targets.

Sales in the fourth quarter, which is seasonally the smallest, increased by 20 percent, excluding currency effects. Organic sales were unchanged – an improvement compared to the third quarter. The trend has continued to be better in Europe than in North America. However, with actions implemented, the trend in North America has gradually improved during the year. Strong growth in RV Products, products for motorhomes and caravans, has contributed to the positive development in Europe.

The EBIT margin for the fourth quarter increased to 4.5 percent (3.8). The gross margin increased and, as planned, product development costs decreased compared with the previous year. Excluding the acquired Quad Lock, total expenses also decreased compared with the previous year. Adjusted EBIT amounted to SEK 83m (65).

For the full year 2025, sales increased by 14 percent, excluding currency effects. Organic sales decreased by 1 percent, unchanged in Europe and a decrease of 6 percent in North America. It is clear that new Thule products are driving growth even in a tough market.

For the full year, the adjusted EBIT margin was 16 percent (17.0). During the second half of the year, the EBIT margin increased compared to the same period last year, due to lower costs. For the full year, adjusted EBIT increased to SEK 1,671m (1,622).

Cash flow from operating activities amounted to SEK 1,132m. Our financial position gives us the flexibility to both distribute money to shareholders and continue to invest for the future.

The work on achieving our long-term sustainability goals has continued at a rapid pace. One focus area in 2025 has been to find more environmentally friendly materials for our products, and in 2026, we will begin producing roof boxes with 10 percent lower CO2 emissions per kg of plastic, as an example.

New products and categories drive growth

The main driver of our historical growth has been new products. We had an intense launch year in 2025, and new products have contributed positively to sales growth again this year. One example is RV Products, where this year’s launches have generated growth despite a weaker period in the market for motorhome and caravan products. In our largest category, Sport & Cargo Carriers, we have updated our range of both roof boxes and bike carriers, which has had a clear positive effect on sales, even in the challenging North American market.

Our three newest product categories grew rapidly in 2025. Products for dog transport, which had a record-breaking start in 2024, have continued to perform strongly, helped by the launch of more products. The record for the best new category, in terms of first-year sales, was this year taken over by our car seats. Sales of performance phone mounts developed strongly during all quarters of the year and grew by approximately 15 percent during the year. Quad Lock has had a good first year as part of Thule.

Clear plan to meet ambitious financial targets

At our Capital Markets Day in November, we presented updated financial targets and a clear plan for achieving them. We will drive long-term value creation by focusing on organic growth in so-called Champion categories and continued efficiency improvements. Our new ambitious targets mean increasing growth and profitability compared to historical levels.

Thule has a long history of profitable growth and many strengths to build on. A key theme during the Capital Markets Day was Champions, product categories that have accounted for 90 percent of historical value creation. Champions are categories where Thule is the global market leader in an attractive niche, and where we have the ability to do more and better innovation than our competitors. We currently have six Champions. In addition, we are pleased to have three promising Champions candidates, categories with the potential to fit the description and with strong sales momentum: dog transportation, car seats, and all terrain- and running strollers. The most important priority in our growth plan is to build bigger and more Champions, and the ambition is to increase the number to ten by 2035.

Cost efficiency is a constant priority, and continued efficiency improvements are crucial to achieving our profitability target. We have implemented several initiatives in 2025 and have more in progress that will have an impact in the coming years. In addition, Thule is well positioned to increase profitability through economies of scale, for example through better utilization of available production capacity in our own factories. 

Focus on Champions and efficiency improvements in 2026

The first priority for 2026 is to grow Champion categories through product development. We will launch many new Thule products in 2026 as well, to both grow our current Champions and build up the candidates. Already in the first quarter, we will launch the new Thule Vero bike rack for the US market and a new generation of the lower-priced Thule Pulse roof box. In the second quarter, new products for both dog transportation and car seats will be launched. At the same time, we are continuing our efforts to present our range to more consumers. For example, at the end of 2025, we established a sales organization in Australia, a country with many outdoor enthusiasts and growth potential for Thule. In the first quarter of 2026, e-commerce will also open in Australia via thule.com.

We will continue to drive efficiency improvements in 2026: we will make more focused R&D investments, create technology platforms to optimize manufacturing costs, and automate our warehouse in Poland. More focused R&D means that we will increase investments in Champions but reduce total R&D costs, an effect that will already be visible in 2026.

In 2025, we increased both sales and profit despite a challenging business environment. As we enter 2026, the market as a whole is still affected by cautious consumers and retailers, but the trend is now more positive in, for example, the market for RV Products.

Thule is well-positioned regardless of the market situation, and we have sharpened our priorities to drive growth and profitability. More and more people want to live active lives, which also gives us tailwind over time. The work to build a larger, more profitable Thule continues. I am very much looking forward to 2026! 

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Image courtesy Quad-Lock/Thule Group