Husqvarna Group's Q3 2025 Reports Mixed Performance Amid Market Challenges

Husqvarna Group's Interim Report: January - September 2025

On October 21, 2025, Husqvarna Group released its interim report for the period of January to September 2025, revealing a mixed performance amidst ongoing market challenges. The highlights of the report indicate both growth and contraction in various sectors of the business, raising questions about the future direction of the company under new CEO Glen Instone, who assumed the role on August 11, 2025.

Overview of Financial Performance in Q3 2025

In the third quarter of 2025, Husqvarna experienced flat organic sales growth. The net sales decreased by 5%, amounting to SEK 9,204 million, compared with SEK 9,739 million during the same quarter in the previous year. This decline can be partly attributed to unfavorable changes in exchange rates, which had a negative impact of 5% on the figures.

Despite these challenges, there was a notable increase in operating income—up to SEK 141 million from SEK 52 million a year earlier, reflecting a marginal improvement in operating margin from 0.5% to 1.5%. Excluding items affecting comparability, the margin maintained a stable performance at 1.5% (0.5%). However, earnings per share faced a slight dip, shifting from SEK -0.27 to SEK -0.02 after dilution.

Financial Overview from January to September 2025

When analyzing the broader timeline from January to September 2025, there was an organic sales growth of 1%, despite a net sales decline of 2%, measuring SEK 39,184 million compared to SEK 39,888 million. Here, currency fluctuations also played a significant role, impacting sales by approximately 3%. Operating income decreased to SEK 3,735 million, with the operating margin slightly down from 9.7% to 9.5%. However, earnings per share improved marginally, indicating potential resilience in some areas of the business.

Insights on Market Segments and Strategic Directions

Glen Instone's first report as CEO brings optimism with statements about upcoming strategic initiatives aimed at enhancing competitiveness and operational excellence. The professional segment, particularly in robotic mowers, saw significant growth propelled by innovative boundary wire-free technology and advanced power tools. This segment remains a top priority for the company moving forward.

Conversely, the residential sector faced challenges, with subdued demand for handheld tools and petrol-powered equipment in regions like North America, highlighting the broader market constraints due to reduced consumer spending.

The Garden Division specifically noted a 7% decline in organic sales, attributed mainly to reduced sales within the Gardena brand. On a brighter note, the Husqvarna Forest & Garden Division and the Construction Division showed positive results with organic growth figures of 1% and 3%, respectively.

Enhancing Profitability and Financial Position

Despite facing a challenging market environment, Husqvarna managed to reduce its net debt significantly from SEK 12.8 billion to SEK 9.9 billion. The net debt/EBITDA ratio showed positive progress as it improved from 2.4 to 2.2, indicating a strengthened financial position as the company approaches 2026.

Cost-efficiency measures initiated last year are expected to conclude by the end of the year, aiming for full impact in 2026. Recently, the company announced the closure of a facility in Brastad, Sweden, focusing on a transition to externally sourced components for producing petrol-powered products, which aligns with a long-term strategy toward a leaner business model.

Future Innovations and Strategic Focus

Looking forward, Instone emphasized the company's commitment to innovation, readying several new product launches for 2026, including AI-driven robotic mowers that promise enhanced customer value and sustainability practices. The upcoming Capital Markets Day on December 10, 2025, in Stockholm will be a pivotal platform to unveil these innovations and outline a new strategic roadmap.

As Husqvarna navigates through these economic challenges and charts a new course under Glen Instone’s leadership, the focus will be on leveraging its strengths to drive long-term growth while adapting to ever-changing market conditions.