Sweden · Delayed Price · Currency is SEK Husqvarna AB Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw 2% organic sales growth and 10% EBIT expansion, driven by strong robotics, watering, and handheld segments, with cost savings and innovation supporting margins. Guidance for cost savings and tariffs was maintained, while inflation and inventory levels are closely monitored.
Fiscal Year 2025
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Organic sales grew 1% in 2025 despite soft North American demand and FX/tariff headwinds. Cost savings, reduced net debt, and a strong product pipeline support a proposed dividend increase and ambitious growth and margin targets for 2026 and beyond.
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A SEK 4 billion cost-out program and new financial targets aim to drive profitable growth, with a focus on operational excellence, innovation, and capital efficiency. Divisions have clear roadmaps for growth, profitability, or turnaround, while sustainability and aftermarket expansion remain key priorities.
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Professional and construction segments grew, offsetting declines in Gardena, with flat overall sales but improved earnings from cost control and mix. Strong cash flow reduced net debt, while FX and tariffs remain headwinds. Robotics and battery segments now comprise 22% of sales.
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Q2 saw 5% organic sales growth, margin expansion, and strong results in robotics and watering, despite macroeconomic headwinds and North American weakness. Sustainability targets were exceeded, and net debt was further reduced.
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Q1 saw a 1% organic sales decline and lower operating income, mainly due to North American weakness and currency headwinds, but robotics and battery products grew strongly. Cost-saving measures and inventory reductions improved cash flow, while tariff headwinds and market uncertainty remain key risks.
Fiscal Year 2024
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2024 saw strong cash flow, inventory reduction, and cost savings despite lower sales and margins due to challenging markets. Strategic divestiture and new product launches position the company for growth, with continued focus on robotics, battery, and sustainability.
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Robotics and battery products drove growth amid a challenging market, but group operating income and margins declined due to lower volumes and increased promotions. Cost-saving programs were accelerated, with SEK 500 million in new fixed cost reductions announced, and strong cash flow enabled significant debt reduction.
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Q2 2024 saw a 6% organic sales decline due to weak macro and adverse weather, especially impacting Gardena Watering and North American Construction. Professional robotics and battery products grew, cost savings supported margins, and cash flow was strong from inventory reduction.