Husqvarna (HUSQ) CMD 2025 summary

Strategic transformation and financial targets

• Launched a SEK 4 billion cost-out program, the largest in company history, aiming for full effect by 2030, with 60% of savings targeted for the mid-term and SEK 1.5 billion in non-recurring costs expected.

• Set new financial targets: 3-5% organic sales growth per year, operating margin above 10% within 3–4 years and over the cycle, and 15% ROCE by 2030, with margin and ROCE targets excluding items affecting comparability.

• Capital allocation prioritizes profitable growth, turnaround segments, and disciplined M&A, with limited patience for underperforming units and a dividend policy of at least 40% of net income.

• About half of cost savings will be reinvested in R&D and brand/marketing, increasing brand spend from 3% to 4%-5% of sales and maintaining R&D at 5%.

• Working capital efficiency targeted to improve from 32% to 25% by 2030, with a shift to a more asset-light manufacturing model and net debt/EBITDA maintained below 2.5.

Business portfolio and divisional roadmaps

• Forest & Garden Division leads in autonomous, zero-emission solutions, focusing on robotics, aftermarket expansion, and operational excellence, with targeted actions for turnaround and profitability improvement.

• Gardena Division maintains global leadership in watering and hand tools, transforming powered garden and robotics for profitability, and driving growth through innovation, e-commerce, and complexity reduction.

• Construction Division will simplify its portfolio, shift to platform-based design, and aggressively cut costs, targeting at least 20% model reduction by 2027, while expanding aftermarket services and maintaining strong positions in core segments.

• All divisions will leverage partnerships across R&D, manufacturing, and supply chain to accelerate innovation and cost competitiveness.

• Aftermarket and solutions are positioned as key differentiators, with ambitions to grow aftermarket sales from SEK 9 billion to over SEK 12 billion by 2030 and deepen customer engagement.

Market environment, innovation, and sustainability

• Facing increased competition, especially from Chinese and power tool players in robotics and battery segments, with market share in robotics lower than five years ago but still leading.

• New product launches include AI-enabled vision robotic mowers for 2026 and the self-operating Autogrinder, targeting both residential and professional users.

• Sustainability targets raised: CO2 emissions to be reduced by 60% by 2030 (vs. 2015), and 25% of sales to come from circular offerings.

• Company culture transformation is emphasized, aiming for greater speed, agility, and execution focus.

• Pricing outlook is for low single-digit increases, with tariffs expected to have a SEK 200–300 million impact in early 2026.