Husqvarna (HUSQ) Q1 2025 earnings summary

Executive summary

• CEO announced intention to step down by year-end 2025 as the group enters a new strategic period; significant cost-saving and operational improvement initiatives are underway.

• Net sales reached SEK 14,704m, down 1% organically year-over-year, with strong 16% growth in robotic mowers offset by weak North American performance and negative price effects.

• Robotics and battery products now represent 21% of group sales, with strong growth in wire-free robotics and innovation leadership reinforced by successful product launches.

• Cost-saving programs delivered SEK 200 million+ in savings, improved cash flow, and reduced net debt.

• Challenging market conditions due to trade tariffs, geopolitical uncertainty, and cautious retail partners.

Financial highlights

• Net sales SEK 14,704m in Q1 2025, nearly flat year-over-year; organic sales down 1%.

• Operating income (excl. IAC) SEK 1,561m, down from SEK 1,930m; margin declined to 10.6% from 13.1%.

• Direct operating cash flow improved to SEK -1,212m from SEK -1,614m; inventory reduced by SEK 4.1bn and net debt by SEK 4.0bn year-over-year.

• Net debt/EBITDA (R12) at 2.5x, reflecting improved leverage.

• Net income: SEK 971m (SEK 1,322m Q1 2024); EPS after dilution SEK 1.69 (2.31).

Outlook and guidance

• SEK 400 million in additional cost savings targeted for the rest of 2025.

• Price increases and supply chain adjustments planned to offset trade tariff impacts.

• Market uncertainty expected to persist due to economic conditions, trade tariffs, and currency effects.

• Opportunities for growth seen as better in Europe than the U.S., but overall uncertainty remains high.

• Gardena watering rebound expected in Europe in Q2 if weather normalizes.