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Husqvarna Group Shifts Focus by Discontinuing Stone Diamond Tools Business

In a significant strategic shift aimed at enhancing profitability and optimizing their portfolio, Husqvarna Group has declared its decision to cease operations of its non-core stone diamond tools segment. As part of this restructuring plan, the company will close its manufacturing facilities located in Belgium, Portugal, and Greece, alongside pausing all related global sales and service operations.

Glen Instone, CEO of Husqvarna Group, articulated that this move aligns with the company’s dedication to refining its product offerings and prioritizing investments in high-potential segments. He stated, "This is fully aligned with the Group's strategy to transform to profitable growth through disciplined portfolio management and more focused capital allocation. Going forward, a more streamlined product portfolio will enable us to prioritize investments in innovation in segments with the strongest potential to deliver margin expansion and attractive returns."

The exit from the stone diamond tools business is anticipated to affect net sales by roughly SEK 250 million annually while having a marginally positive impact on the operating margin within the division. Currently, this segment is categorized under the Sawing and Drilling Business Portfolio Unit, working on phasing out by the conclusion of 2026.

Approximately 200 employees are associated with this sector, and the process to withdraw will be executed with careful attention to their wellbeing. Husqvarna aims to engage in consultations with works councils and labor unions during this transitional phase, ensuring a responsible and thoughtful exit for all impacted personnel. The company intends to uphold a supportive environment throughout this withdrawal period in each affected location.

Husqvarna Group, renowned for its innovative contributions to forestry, park, and garden management, alongside construction equipment and cutting tools, is dedicated to delivering top-quality solutions. With a rich history stretching back to 1689 in the Swedish town of Huskvarna, the brand has continuously evolved, and today operates under the Husqvarna and Gardena names across over 100 countries.

In the fiscal year of 2025, the group reported a net sales figure of SEK 46.6 billion and maintains a workforce of approximately 11,900 diverse employees in 40 countries. The company is publicly traded on Nasdaq Stockholm, reflecting its significant presence in the global market.

As Husqvarna pivots towards a more concentrated line of products, it will continue focusing on innovations that promise to enhance its market position and drive revenue in key areas.

This move marks a definitive step in Husqvarna's commitment to sustainable growth and its strategic realignment towards segments that promise enhanced margins and return on investment.

For inquiries or further information, please contact:

• - Henrik Sjöström, Head of External Communication, +46 727 15 77 85, [Henrik's Email]
• - Emelie Alm, Vice President Investor Relations, +46 70-514 64 14, [Emelie's Email]