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Thule Group AB Unsponsored ADR (THUPY)
OTHER OTC:THUPY
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Thule Group AB Unsponsored ADR
(OTC:THUPY)
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Rating:64Neutral
Price Target:
$14.00
▲(10.41% Upside)
Action:ReiteratedDate:02/18/26
The score is primarily driven by solid but softening fundamentals: healthy profitability and returns are tempered by rising leverage and weaker 2025 cash conversion/free cash flow. Technicals are neutral with limited momentum, while valuation looks somewhat demanding versus recent organic growth. Earnings-call commentary is constructive on strategy and cost actions, but near-term growth and FX/tariff risks remain clear.
Positive Factors
Strong brand & product recognition
Thule's recognized product design and measurable sustainability progress (large CO2 reduction and multiple awards) support durable brand equity. That premium positioning helps sustain pricing, retailer support and repeat purchase behavior across outdoor categories, bolstering long-term margin resilience.
Accretive M&A (Quad Lock)
The Quad Lock acquisition materially increased reported sales and improved margin mix while adding a fast-growing product line (phone mounts). Successful, margin-accretive M&A diversifies revenue, shortens time-to-growth, and demonstrates management's ability to integrate complementary, higher-growth categories.
Clear medium-term targets & efficiency roadmap
Management has set specific, measurable goals (7% organic growth, 20% EBIT) and quantifiable cost measures (SEK100m automation savings) with a high payout discipline (≥75% dividend). Concrete initiatives increase accountability and provide a credible path to lift margins and restore organic growth over the medium term.
Negative Factors
Weakened cash generation
Operating and free cash flow contracted materially in 2025, with FCF down ~30% and cash conversion below historical norms. Reduced cash generation limits internal funding for capex, integration and dividends, increases reliance on external financing, and raises risk around achieving medium-term targets if volatility persists.
Rising leverage reduces flexibility
Leverage has increased meaningfully, constraining balance-sheet flexibility. Higher debt levels make Thule more exposed to cash-flow swings and interest-rate or macro stress, limiting room for opportunistic investment or cushions against cyclical revenue dips while it pursues dividend and acquisition plans.
Weak organic growth and category/region softness
Negative organic growth and pronounced underperformance in legacy Bags & Mounts and North America point to demand and assortment challenges beyond one-off effects. Reliance on acquisitions for topline lift raises execution risk for sustainably restoring organic momentum and meeting aggressive growth targets.
Thule Group AB Unsponsored ADR (THUPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.62B
Dividend Yield2.57%
Average Volume (3M)628.00
Price to Earnings (P/E)24.7
Beta (1Y)0.84
Revenue Growth14.37%
EPS Growth-6.07%
CountryUS
Employees2,800
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.01
Shares Outstanding215,676,330
10 Day Avg. Volume60
30 Day Avg. Volume628
Financial Highlights & Ratios
PEG Ratio-2.95
Price to Book (P/B)3.52
Price to Sales (P/S)2.44
P/FCF Ratio32.45
Enterprise Value/Market Cap10.71
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit5.85
Enterprise Value/Ebitda15.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Thule Group AB Unsponsored ADR Business Overview & Revenue Model
Company DescriptionThule Group AB (publ) operates as a sports and outdoor company. It offers roof racks; roof boxes; carriers for transporting bikes, water, and winter sports equipment and rooftop tents; awnings, bike carriers, and tents for RVs and caravans; bike trailers, child bike seats, and strollers; luggage, backpacks, and laptop and sport bags; and hiking backpacks, camera bags, and cases for consumer electronics. The company offers its products primarily under the Thule and Case Logic brands. It operates in Sweden, other Nordic countries, Germany, rest of Europe, the United States, other North America, Central/South America, the Asia/Pacific Rim, and internationally. Thule Group AB (publ) was founded in 1942 and is headquartered in Malmö, Sweden.
How the Company Makes MoneyThule Group AB generates revenue through the sale of its wide array of outdoor and transportation products across various channels, including retail, e-commerce, and direct sales. Key revenue streams include the sales of roof racks, bike carriers, and travel accessories, which are popular among consumers who engage in outdoor activities. The company also benefits from partnerships with retailers and distributors, enhancing its market reach and brand visibility. Additionally, Thule's focus on innovation and high-quality products helps to maintain customer loyalty and drive repeat purchases, contributing to its overall earnings.
Thule Group AB Unsponsored ADR Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call highlighted strong strategic progress: record reported sales, record gross margin, accretive Quad Lock acquisition, expanding D2C footprint, sustainability gains and clear medium-term targets and cost programs. However, growth quality is mixed — organic sales were negative for the year, North America and legacy Bags & Mounts underperformed, and FX/tariff headwinds and temporary working-capital effects weighed on margins and cash flow. Management presented concrete product, efficiency and portfolio actions to drive future organic growth toward the 7% target and margin improvement toward 20%, supporting an overall constructive outlook despite near-term market caution.Q4-2025 Updates
Positive Updates
Record Full-Year Sales
Reported full-year sales reached ~SEK 10.4–10.5 billion (all-time high) with reported growth of 9% year-on-year and acquisition impact contributing materially to reported top-line expansion.
Record Gross Margin
Full-year gross margin reached a record 46.0% (versus 42.7% prior year), driven by acquisition mix (Quad Lock), price/mix effects and supply-chain efficiencies.
Profitability and EBIT
Adjusted full-year EBIT was SEK 1,671 million with an EBIT margin of 16.0%; Q4 adjusted EBIT rose to SEK 83 million (vs SEK 65 million prior year) and Q4 adjusted EBIT margin improved to ~4.5%.
Quad Lock Acquisition Accretive
Quad Lock contributed ~+15% acquisition impact to full-year sales, recorded organic growth ~15% (Q4 and full year), helped raise overall gross margin and was slightly accretive to Thule's EBIT margin.
New and Growing Product Categories
Fast growth in newer categories: dog transportation, child car seats and phone mounts; Active with Kids & Dogs grew organically +6% in Q4 (dog and car-seat momentum notable) and these categories are positioned as future Champions.
D2C and Digital Expansion
Expanded thule.com to 20 D2C markets, making digital channels a meaningful launch and growth channel for new products and categories.
Cash Generation & Capital Returns
Operating cash flow ~SEK 1.1 billion; Board proposes unchanged ordinary dividend SEK 8.3 per share (in line with payout target ≥75% of net income).
Sustainability and Product Recognition
CO2 emissions down ~30% vs 2019 (absolute), eco-design examples (Xscape bed rack 60% lower footprint), and strong product recognition (ADAC, 17 Red Dot/iF awards).
Strategic Targets & Efficiency Roadmap
Updated targets: 7% annual organic growth, 20% EBIT margin and ≥75% dividend payout. Cost actions expected to lift EBIT margin ~2.5 percentage points by 2028 and DC automation in Poland targeted to yield ~SEK 100 million savings at full effect (2028).
Negative Updates
Negative Organic Growth for Full Year
Organic sales declined ~1% (CFO cited -1.3% organic growth for the full year) despite reported growth driven by acquisition and FX; Q4 organic growth was flat (0%).
Weakness in North America and Sport & Cargo
Sport & Cargo Carriers declined 4% in Q4 and ~1% for the full year; declines were driven by North America where consumer caution, tariffs and retailer destocking weighed on sales and inventory replenishment.
Bags & Mounts Underperformance (Legacy Parts)
Bags & Mounts organic growth 0% in Q4 and down ~10% for the full year (legacy Case Logic and OE bag products in decline) despite Quad Lock offsetting the category at group level.
FX and Tariff Headwinds
Significant FX impact: Q4 FX reduced top line by ~10% and lowered EBIT margin by ~2–3% in the quarter; full-year FX hurt margin by ~1 percentage point. Tariffs (North America) also required pricing actions and affected market dynamics.
Working Capital and Inventory Effects
Working capital increased by SEK 131 million for the full year due to forward integration (Australia) and some pulled-forward investments; although inventories fell SEK 157 million in the year, the quarter saw inventory build related to integrations.
Lower Cash Flow vs Prior Year
Operating cash flow around SEK 1.1 billion, which management said is lower than the prior year, reflecting seasonal and integration-related cash movements.
EBIT Margin Slightly Below Prior Year
Full-year EBIT margin decreased by ~1 percentage point to 16.0% versus prior year, despite strong gross margin, due to mix, FX and transitional costs.
Market Caution and Retailer Destocking
Management highlighted cautious consumers and retailers, particularly for seasonal products (affecting bike-related sales), which suppressed organic growth and caused uneven quarterly performance.
Company Guidance
The company reiterated ambitious guidance and concrete financial targets: to deliver 7% annual organic sales growth, reach a 20% EBIT margin and maintain a dividend payout ratio at or above 75% of net income, with a board proposal of SEK 8.3 per share for 2025; to support this it plans cost actions to lift EBIT by 2.5 percentage points by 2028, scale efficiencies (DC automation in Poland with SEK 100m annual savings at full effect 2028), and grow Champions from 6 to 10 by 2035. Key metrics and near-term phasing: FY‑25 sales ~SEK 10.4–10.5bn (reported +9%, organic −1.3%, acquisition +15%, FX −5%), Q4 sales ~SEK 1.8bn (reported +9%, organic 0%, acquisition +20%, FX −10%), gross margin FY 46% (Q4 44.9%), adjusted EBIT FY SEK 1,671m (16.0%) and Q4 SEK 83m (4.5%); cash flow from operations ~SEK 1.1bn; inventories −SEK 157m in 2025 (−SEK 1.6bn over 3 years); CapEx SEK 348m in 2025 with the Poland project (total ~SEK 450m: 33% in 2025, 56% in 2026, remainder 2027); R&D 7.3% of sales in 2025, targeted down to 6% medium term with ≥4% focused on Champions; leverage net debt/EBITDA ~2.0 with deleveraging expected in 2026.Thule Group AB Unsponsored ADR Financial Statement Overview
Summary
Profitability remains solid (2025 gross margin ~46%, net margin ~10.7%), but margins have compressed versus 2020–2022. Leverage has increased (debt-to-equity ~0.59 in 2025), and cash generation weakened materially in 2025 with free cash flow down ~30% YoY and weaker cash conversion versus net income.Income Statement
Revenue rebounded in 2025 (+1.9% YoY) after a soft 2023, showing demand normalization but not strong growth. Profitability remains solid with a ~46% gross margin and ~10.7% net margin in 2025, though both have stepped down versus 2020–2022 levels (peak net margin ~17% in 2021). Operating profitability has also compressed (EBIT margin ~14.8% in 2025 vs. ~17–23% in prior years), suggesting higher costs and/or pricing pressure despite stable earnings.74
Positive
Balance Sheet
Leverage is moderate but has clearly increased: debt-to-equity rose to ~0.59 in 2025 from ~0.32 in 2023 and ~0.21 in 2020, reducing balance-sheet flexibility. Equity remains sizeable and returns on equity are healthy (~15% in 2025), indicating the company is still generating attractive profits relative to book value. The main watch item is the upward debt trend alongside a decline in equity from 2024 to 2025.68
Positive
Cash Flow
Cash generation weakened materially in 2025: operating cash flow fell to 1.13B and free cash flow dropped to 0.78B (about -30% YoY). Cash conversion also looks weaker, with operating cash flow covering only ~0.75x of net income and free cash flow running at ~0.69x of net income in 2025, down from stronger conversion in 2023–2024. While still positive, the volatility (notably the 2022 trough and the 2025 pullback) raises questions around working-capital swings and/or higher capital spending.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.43B | 9.54B | 9.13B | 10.14B | 10.39B |
| Gross Profit | 4.79B | 4.07B | 3.74B | 3.86B | 4.16B |
| EBITDA | 1.89B | 1.89B | 1.88B | 1.94B | 2.50B |
| Net Income | 1.11B | 1.12B | 1.10B | 1.27B | 1.79B |
Balance Sheet | |||||
| Total Assets | 13.74B | 14.96B | 10.97B | 11.68B | 10.19B |
| Cash, Cash Equivalents and Short-Term Investments | 218.00M | 405.00M | 94.00M | 176.00M | 149.00M |
| Total Debt | 4.27B | 4.37B | 2.17B | 3.06B | 1.62B |
| Total Liabilities | 6.51B | 6.86B | 4.12B | 5.13B | 4.38B |
| Stockholders Equity | 7.23B | 8.10B | 6.85B | 6.55B | 5.82B |
Cash Flow | |||||
| Free Cash Flow | 784.00M | 2.05B | 1.60B | 172.00M | 621.00M |
| Operating Cash Flow | 1.13B | 2.31B | 1.85B | 616.00M | 1.13B |
| Investing Cash Flow | -335.00M | -3.10B | -251.00M | -464.00M | -503.00M |
| Financing Cash Flow | -965.00M | 1.10B | -1.68B | -136.00M | -1.19B |
Thule Group AB Unsponsored ADR Technical Analysis
Negative
12.68
Price Trends
12.58
Negative
12.74
Negative
13.22
Negative
Market Momentum
<0.01
Positive
44.25
Neutral
66.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THUPY, the sentiment is Negative. The current price of 12.68 is above the 20-day moving average (MA) of 12.56, above the 50-day MA of 12.58, and below the 200-day MA of 13.22, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 66.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THUPY.
Thule Group AB Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.13B | 31.17 | 13.53% | 0.79% | 7.27% | 45.12% | |
69 Neutral | $509.00M | -22.31 | -7.78% | 3.22% | -0.07% | -31.45% | |
67 Neutral | $3.27B | 21.27 | 23.79% | ― | 1.56% | -17.21% | |
64 Neutral | $2.62B | 24.66 | 14.70% | 2.57% | 14.37% | -6.07% | |
63 Neutral | $6.00B | 32.87 | 24.35% | 1.15% | 4.20% | 24.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
THUPY
Thule Group AB Unsponsored ADR
12.14
-3.72
-23.47%
GOLF
Acushnet Holdings
101.32
38.01
60.03%
JOUT
Johnson Outdoors
49.21
24.27
97.28%
YETI
Yeti Holdings
43.39
7.99
22.57%
OSW
OneSpaWorld Holdings
21.04
2.56
13.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.