Husqvarna Group: INTERIM REPORT JANUARY - SEPTEMBER 2026

Cost savings reached approximately SEK 935m year to date, but lower volumes and higher costs continued to weigh on profitability.

Rhea-AI Summary

Husqvarna Group (HUSQ) reported a third-quarter operating loss of SEK 334m, reversing a profit in the prior-year quarter. Sales fell 2% to SEK 9,012m, with an organic decline of 5%. Operating margin fell to -3.7% from 1.5%, and diluted earnings per share fell to SEK -0.70 from SEK -0.02.

Quarterly free operating cash flow was SEK 2,422m versus SEK 2,423m, while net debt declined to SEK 9.4bn from SEK 9.9bn. Organic sales fell 10% in Forest & Garden but grew 8% at Gardena. For January–September, sales fell 5% to SEK 37,356m and operating income declined to SEK 2,977m from SEK 3,735m. Husqvarna said its program remains on track for SEK 3bn in gross savings by end-2028; year-to-date savings reached approximately SEK 935m. European weakness, inventory reductions and higher costs weighed on quarterly profitability, and the company expects near-term headwinds to remain.

12 points · 0 major

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0 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNet debt declined to SEK 9.4bn from SEK 9.9bn.
• Moderate pointJanuary–September free operating cash flow rose to SEK 4,891m from SEK 4,743m.
• Moderate pointCost savings reached approximately SEK 935m year to date, including around SEK 305m in the third quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Gross savings program remains on track, the company says, for SEK 3bn by end-2028.
• Minor pointGardena third-quarter organic sales grew 8%, supported by its Watering business.

7 minor points

• Minor pointNorth American sales showed continued growth across all three divisions in the third quarter.
• Minor pointTariff refunds of SEK 240m were recognized in cost of goods sold during the second quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Production plans include transferring selected battery handheld products from Europe to Asia, using internal facilities and external partners.
• Minor point. Forward-looking: it has not happened yet and may not happen.Residential robotics plans include broader retail coverage and product ranges across price points and channels.
• Minor pointProfessional Robotics sales made the US its largest market during the quarter, mainly through golf-segment growth.
• Minor point. Forward-looking: it has not happened yet and may not happen.Upcoming launches and broader US distribution are expected to strengthen competitiveness next season.
• Minor pointFCC granted conditional approval for foreign-produced advanced robotic devices in the US market.

Negative

• Moderate pointThird-quarter operating income fell to SEK -334m from SEK 141m; margin fell to -3.7% from 1.5%.
• Moderate pointThird-quarter sales fell 2% to SEK 9,012m; organic sales declined 5%, despite a positive 3% currency impact.
• Moderate pointThird-quarter diluted earnings per share fell to SEK -0.70 from SEK -0.02.
• Moderate pointRobotic mowing demand faced weather, competition and elevated European channel inventories; performance fell short of company expectations.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Near-term headwinds are expected to remain; company actions are expected to offset pressures only partly.

11 minor points

• Minor pointThird-quarter comparability charges were SEK 88m, primarily related to cost-saving initiatives.
• Minor pointThird-quarter operating income excluding comparability items fell to SEK -246m from SEK 140m; margin was -2.7% versus 1.5%.
• Minor pointThird-quarter diluted earnings per share excluding comparability items fell to SEK -0.58 from SEK -0.02.
• Minor pointForest & Garden third-quarter organic sales declined 10%, amid European drought and weak consumer demand.
• Minor pointProfitability faced lower volumes, unfavorable product mix, inventory reductions and higher raw-material and logistics costs.
• Minor pointJanuary–September sales fell 5% to SEK 37,356m; organic sales fell 2%, with a -3% currency impact.
• Minor pointJanuary–September operating income fell to SEK 2,977m from SEK 3,735m; margin declined to 8.0% from 9.5%.
• Minor pointJanuary–September diluted earnings per share fell to SEK 3.14 from SEK 4.43.
• Minor pointJanuary–September comparability charges were SEK 445m, primarily related to cost-saving initiatives.
• Minor pointJanuary–September operating income excluding comparability items fell to SEK 3,421m from SEK 3,742m; margin was 9.2% versus 9.5%.
• Minor pointJanuary–September diluted earnings per share excluding comparability items fell to SEK 3.74 from SEK 4.44.

News Explained

Even excluding SEK 88m of comparability items, the quarter recorded a SEK 246m operating loss.

Husqvarna says it will transfer production of selected battery handheld products from Europe to Asia; the Brastad factory phase-out and selected changes in Gardena’s European manufacturing network are progressing according to plan, changing parts of its production footprint.

The third-quarter operating loss was SEK 334m, including SEK 88m of items affecting comparability primarily related to cost-saving initiatives; excluding those items, operating loss was SEK 246m.

The strategic review of the Powered Garden BPU in Gardena remains ongoing, with an update targeted for the beginning of next year.

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STOCKHOLM, Oct. 21, 2026 /PRNewswire/ -- 

Consistent strategy execution in a continued challenging market 

Third quarter 2026

• Net sales decreased organically by 5%.
• Net sales decreased by 2% to SEK 9,012m (9,204), and included a positive impact of 3% from changes in exchange rates.
• Operating income amounted to SEK -334m (141) and the operating margin was -3.7% (1.5).
• Items affecting comparability (IAC) amounted to SEK -88m. These were primarily related to the execution of cost-saving initiatives.
• Excluding IAC, operating income amounted to SEK -246m (140), and the operating margin was -2.7% (1.5).
• Earnings per share (EPS) after dilution amounted to SEK -0.70 (-0.02) and EPS excluding IAC and after dilution amounted to SEK -0.58 (-0.02).
• Free operating cash flow was SEK 2,422m (2,423).
• Net debt was SEK 9.4bn (9.9).

January – September 2026

• Net sales decreased organically by 2%.
• Net sales decreased by 5% to SEK 37,356m (39,184), and included an impact of -3% from changes in exchange rates.
• Operating income amounted to SEK 2,977m (3,735) and the operating margin was 8.0% (9.5).
• Items affecting comparability (IAC) amounted to SEK -445m. These were primarily related to the execution of cost-saving initiatives.
• Excluding IAC, operating income amounted to SEK 3,421m (3,742), and the operating margin was 9.2% (9.5).
• IEEPA-related tariff refunds of SEK 240m were recognized in COGS during the second quarter.
• Earnings per share (EPS) after dilution amounted to SEK 3.14 (4.43) and EPS excluding IAC and after dilution amounted to SEK 3.74 (4.44).
• Free operating cash flow was SEK 4,891m (4,743).

CEO Comment

We are making solid progress on our strategic priorities. Our cost savings program remains on track, recent product launches are receiving encouraging customer feedback, and we are broadening our presence across sales channels. Although these measures have not yet fully offset current market headwinds, they reinforce our confidence in the Group's long-term competitiveness and prospects.

Financial performance summary

Net sales were SEK 9,012m (9,204), representing an organic decline of 5% in the quarter, primarily driven by continued weakness in Europe. Organic sales in the Husqvarna Forest & Garden Division declined by 10%, sales in the Husqvarna Construction Division were unchanged, while the Gardena Division delivered solid organic growth of 8%. Performance in the Husqvarna Forest & Garden Division was significantly affected by the widespread drought across large parts of Europe and continued weak consumer demand in key markets, including Germany and France. In contrast, strong growth in the Gardena Division's Watering business highlighted the resilience of our diversified portfolio, gaining market shares in key markets, and the Husqvarna Construction Division has continued good momentum in its aftermarket business. I am also encouraged by continued growth across all three divisions in North America.

Operating income excluding IAC was SEK -246m (140), corresponding to a margin of -2.7% (1.5). The result reflected lower volumes in the Husqvarna Forest & Garden Division, an unfavorable product mix, inventory reductions and cost increases on raw materials and logistics costs. Free operating cash flow was stable at SEK 2,422m (2,423), as lower operating income was offset by changes in working capital, primarily driven by reduced inventories. We further strengthened the balance sheet, reducing net debt to SEK 9.4bn (9.9).

Executing on cost savings while navigating cost headwinds

Our transformative cost savings program remains on track to deliver SEK 3bn in gross savings by the end of 2028. Year-to-date savings reached approximately SEK 935m, including around SEK 305m in the third quarter, driven mainly by sourcing activities and personnel reductions. However, lower volumes, inventory reductions and cost headwinds continue to weigh on profitability. We are responding with targeted price increases, supply chain actions and product cost optimization, which will partly offset these pressures, although near-term headwinds are expected to remain.

We are advancing our asset-light strategy through further outsourcing initiatives. We will transfer production of selected Husqvarna-branded battery handheld products from Europe to Asia, using both our own facilities and external partners to enhance efficiency and competitiveness.

In addition, the ongoing discontinuation of the stone diamond tool business in the Construction Division, the phase-out of our Brastad component factory in the Husqvarna Forest & Garden Division and relocation of selected activities within Gardena's European manufacturing network are progressing according to plan.

Unlocking the next phase of robotics growth

Our robotic lawn mowing business faced a difficult quarter, with adverse weather, competitive headwinds, and elevated channel partner inventories in Europe constraining demand for Husqvarna- and Gardena-branded products. Although recent performance has fallen short of expectations, we remain the clear market leader and we are confident in our strategy and longer-term development.

The strategic review of the Powered Garden BPU in the Gardena Division is ongoing and we aim to provide an update in the beginning of next year. Our priorities in the Husqvarna Forest & Garden Residential Robotics BPU include expanding our retail footprint and product range across price points and channels, strengthening the robotics organization and development model.

During the quarter, the US became the largest market in terms of sales for our Professional Robotics BPU, driven mainly by continued growth in the golf segment. Upcoming product launches and broader US distribution are expected to further strengthen our competitive position next season. We are also encouraged to be the first robotics company to receive conditional approval from the Federal Communications Commission (FCC) for foreign-produced advanced robotic devices in the US market.

Building a stronger, more competitive Husqvarna Group

We are accelerating change across the Group to create a leaner, more agile and asset-light organization. By challenging established ways of working, simplifying operations and acting decisively, we are strengthening competitiveness and profitability in the longer-term. Significant work remains, but I am confident we are moving in the right direction.

When consumer sentiment recovers, particularly in Europe, we will be well positioned to capture growth and improve earnings.

Glen Instone, CEO

Webcast presentation and telephone conference

A webcast presentation of the Q3 report hosted by Glen Instone, CEO and Patrik Johnson, CFO will be held at 9:00 CEST on Oct 21, 2026.
To view the presentation, please use this link.
The dial-in to the telephone conference (to ask questions):
+46 (0) 8 505 100 31 (Sweden) or +44 203 059 58 63 (UK)

Contact
Emelie Alm, Vice President, Investor Relations
+46 70 514 64 14

Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
Hälsingegatan 49, +46 8 738 90 00, www.husqvarnagroup.com

Reg. Nr: 556000-5331

(NASDAQ STOCKHOLM: HUSQ-A) (NASDAQ STOCKHOLM: HUSQ-B)

This report contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 07:00 CEST on Oct 21, 2026.

Factors affecting forward-looking statements

This report contains some forward-looking statements. These statements are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, success in developing new products, outcome of product responsibility litigation and progress in terms of reaching the goals set for productivity and efficient use of capital.

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Interim report Q3 2026 Husqvarna Group

 

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SOURCE Husqvarna Group

FAQ

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What were Husqvarna's third-quarter 2026 financial results?

Husqvarna reported sales of SEK 9,012m and an operating loss of SEK 334m. Sales declined 2%, compared with SEK 9,204m a year earlier, while operating income reversed from SEK 141m. Diluted earnings per share were SEK -0.70 versus SEK -0.02.

What is Husqvarna's cost-savings target and progress?

Husqvarna says its program remains on track to deliver SEK 3bn in gross savings by the end of 2028. Year-to-date savings reached approximately SEK 935m, including around SEK 305m in the third quarter, driven mainly by sourcing activities and personnel reductions.

When will Husqvarna update investors on the Gardena Powered Garden review?

Husqvarna aims to provide an update on the Gardena Powered Garden business-unit strategic review at the beginning of next year. The review remains ongoing.

What manufacturing changes is Husqvarna making?

Husqvarna plans to transfer production of selected Husqvarna-branded battery handheld products from Europe to Asia, using its own facilities and external partners. The company says discontinuation of the stone diamond tool business, the Brastad component factory phase-out and relocation of selected Gardena European manufacturing activities are progressing according to plan.