Husqvarna (HUSQ) Q1 2026 earnings summary

Executive summary

• Organic sales grew 2% year-over-year, with 10% EBIT growth and strong performance in robotics, watering, and handheld products, despite uncertain market sentiment and geopolitical tensions.

• Strategic focus on innovation, product launches, and portfolio management, including new business units and leadership changes, is yielding positive results.

• Earnings per share after dilution increased 21% to SEK 2.05, and 19% to SEK 2.06 excluding items affecting comparability.

• Cost savings initiatives delivered SEK 245 million in Q1, supporting margin expansion.

• CEO highlighted ongoing portfolio development and operational excellence amid market uncertainty.

Financial highlights

• Net sales for Q1 2026 were SEK 13,962m, down 5% year-over-year due to a -7% currency impact, but organic sales grew 2%.

• EBIT increased to just over SEK 1.7 billion, up from SEK 1.56 billion, with a 12.3% operating margin (up from 10.6%).

• Free operating cash flow was SEK -1,137m, mainly due to higher working capital.

• EBITDA reached SEK 2,449m, up from SEK 2,267m year-over-year.

• Gross margin improved to 32.6% from 30.5% year-over-year.

Outlook and guidance

• Full-year cost savings guidance maintained at SEK 800 million.

• Currency headwind expected to be SEK -60 million to SEK -100 million for the full year.

• Tariff headwind for 2026 now expected at SEK -150 million, lower than previous guidance.

• Raw material and logistics inflation expected to have a SEK 300 million gross impact for the year, mitigated by price increases.

• Management remains confident in the product lineup and execution plans for 2026.