Husqvarna Group Reports Financial Performance for First Half of 2025
Husqvarna Group's Interim Report: January to June 2025
Husqvarna Group recently released its interim report for the first half of 2025, highlighting a mix of organic growth amid challenging market conditions. Here are the key insights from this financial report:
Financial Overview
In the second quarter of 2025, net sales experienced a 1% decline, totaling SEK 15,277 million, slightly down from SEK 15,430 in 2024. This decrease was largely attributed to unfavorable exchange rate fluctuations that had a negative impact of about 6%. Despite this, the company's organic sales growth was notable at 5%, indicating a strong underlying market demand.
The operating income for the second quarter rose to SEK 2,063 million compared to SEK 1,899 million in the previous year, leading to an improved operating margin of 13.5%, up from 12.3%. When excluding items that affect comparability, the operating income increased by 7%, reinforcing the Group's growth trajectory.
In terms of earnings, Husqvarna reported earnings per share after dilution of SEK 2.76, an increase from SEK 2.22 year-on-year. Excluding items affecting comparability, it stood at SEK 2.73, up from SEK 2.23.
Cash Flow and Debt Management
Cash flow from operations and investments reported was SEK 2,198 million, down from SEK 3,459 million, while direct operating cash flow peaked at SEK 2,357 million, reflecting a decrease from SEK 3,917 million in the same quarter last year. Encouragingly, net debt also improved, decreasing to SEK 12.3 billion from 15.6 billion.
Performance by Division
1. Husqvarna Forest & Garden Division: This division reported a robust 5% organic sales growth, driven by strong demand for robotic mowers and handheld products. Notably, the category of robotic mowers surged by 15%, thanks to the new Husqvarna Automower® NERA models and expanded offerings in professional robotic mowers.
2. Gardena Division: This segment achieved an impressive 7% growth in organic sales, characterized by significant improvement in operating margins propelled by strong performance in the watering category.
3. Husqvarna Construction Division: Conversely, this division faced a 4% drop in organic sales. While European markets maintained stability, North American sales saw weakness. The division managed to enhance operating income through effective cost-saving measures and a favorable product mix.
Strategic Initiatives and the Way Forward
Husqvarna remains focused on optimizing cash flow through various initiatives, primarily inventory management. Achieving a direct operating cash flow of SEK 2.4 billion illustrates efforts to strengthen financial performance. The company is navigating uncertain global market conditions marked by geopolitical tensions, trade tariff concerns, and currency volatility, particularly affecting North American markets. In response, Husqvarna is optimizing pricing and supply chains while continuing to implement cost-saving measures to boost cash flow and operational efficiency.
On the sustainability front, Husqvarna reported substantial progress towards its sustainability goals, having already achieved two out of three targets, including a remarkable 55% reduction in CO2 emissions and empowering over 5.2 million people towards sustainable choices.
Finally, as part of an organizational change, Glen Instone has been appointed as the new CEO of Husqvarna Group, effective August 11, 2025, indicating a potential for fresh leadership and vision as they move forward.
Looking Ahead
The company is gearing up for its next financial reporting date scheduled for October 21, 2025, where further insights into its performance will be provided. For stakeholders, this interim report suggests a focus on growth and sustainability even amidst economic challenges, reaffirming Husqvarna's commitment to operational excellence and environmental stewardship.
For those interested in further discussions, a webcast presentation by CEO Pavel Hajman and CFO Terry Burke will be held on July 18, 2025. Investors and analysts are encouraged to engage during this session to clarify any points of interest regarding the report and the company’s future initiatives.