Husqvarna (HUSQ) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw organic sales decline by 4% and reported sales fall 6% to SEK 14,383m, mainly due to weak European demand and unfavorable weather, while North America delivered solid growth across all divisions.

• Operating income excluding IAC was SEK 1,950m, with a margin of 13.6%, supported by SEK 240m in tariff refunds; cost inflation and lower sales volumes negatively impacted earnings.

• Strategic execution advanced with cost savings, supplier consolidation, warehouse reductions, manufacturing shifts, and accelerated transformation initiatives.

• Four new group management members were recruited, including new CFO, CPO, CIO, and division presidents, to drive sourcing strategy and transformation.

• Strong free operating cash flow and net debt reduction achieved, with positive cash flow used to reduce borrowings by over SEK 1 billion.

Financial highlights

• Net sales for Q2 2026 were SEK 14,383m (down 6% year-over-year, organic -4%, currency -2%).

• Operating income excluding IAC was SEK 1,950m; operating margin excluding IAC improved to 13.6% (Q2 2025: 13.4%).

• Free operating cash flow in Q2 was SEK 3,903m, up from SEK 2,459m in Q2 2025.

• Net debt reduced to SEK 11.8bn, with net debt/EBITDA ratio at 2.0.

• EPS after dilution: SEK 1.80 (down from 2.76); EPS excluding IAC: SEK 2.27 (down from 2.73).

Outlook and guidance

• Cost savings program accelerated: SEK 3bn targeted by end of 2028 (previously by 2030), with SEK 630m already achieved year-to-date.

• Inflationary headwinds from the Middle East expected to total SEK 300–350m for 2026, mainly in raw materials and logistics.

• Modest price increases planned to offset inflation, with further increases in select markets in July.

• Currency headwinds expected to remain negative for the year, with flat to slightly positive impact in Q3 and Q4.

• Management remains committed to transformation and profitable growth, focusing on operational excellence and strategic portfolio management.