Husqvarna (HUSQ) Q2 2025 earnings summary

Executive summary

• Glen Instone appointed as new CEO, effective August 11, 2025, succeeding previous leadership.

• Q2 2025 delivered 5% organic sales growth, higher EBIT, and margin expansion across all divisions, led by robotics and watering products.

• Innovation leadership reinforced by successful launches in robotic mowers and watering, supporting premium product focus.

• Two out of three 2025 sustainability targets achieved, including 55% CO2 reduction and empowering 5.2 million people.

• Macroeconomic uncertainty persists due to tariffs, geopolitical instability, and weak North American demand.

Financial highlights

• Q2 2025 net sales SEK 15,277m (-1% year-over-year); organic growth +5%; operating income SEK 2,041m–2,063m; margin 13.4–13.5% (up from 12.3–12.4%).

• Robotics and battery products contributed 22% of group sales, up from 20% year-over-year.

• Inventory reduced by SEK 2.8–3.0bn year-over-year; net debt reduced by SEK 3.3bn to SEK 12.3bn.

• Direct operating cash flow SEK 2,357m in Q2, down from SEK 3,917m last year.

• Net debt/EBITDA ratio at 2.3 as of June 30, 2025.

Outlook and guidance

• Market uncertainty expected to continue, especially in North America, due to tariffs, geopolitical instability, and currency fluctuations.

• Further tariff pressure expected, with a net negative impact of €100 million in H2.

• Focus on innovation, cost savings, operational efficiencies, and supply chain optimization to mitigate risks.

• Prioritizing high-potential professional segments and sustainable value creation.