Husqvarna (HUSQ) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 results aligned with market guidance, with strong cash flow, inventory reduction, and growth in professional robotics, battery, and seasonal products, despite lower sales and margins due to challenging market conditions, especially in North America.

• Transformation and cost-saving programs led to a leaner organization, with significant structural changes in North America, including the divestiture of the Orangeburg facility to Flex.

• Sustainability targets were met, with CO2 emissions reduced by 56% compared to 2015 and progress in circular innovations.

• Strategic partnership with Flex and new product launches, including boundary wire-free robotic mowers and battery systems, position the company for future growth.

• Board proposed a SEK 1.00 dividend per share for 2024, reflecting 43% of reported EPS and 32% of adjusted EPS.

Financial highlights

• Q4 net sales were SEK 8,464m, with organic sales down 3% year-over-year; full-year net sales declined 9% to SEK 48,352m, with organic sales down 7%.

• Q4 operating income (excluding items affecting comparability) was SEK -694m, with a margin of -8.2%; full-year operating income (excluding IAC) was SEK 3,195m, margin 6.6%.

• Direct operating cash flow improved to SEK 6,905m for the year, driven by SEK 3.3bn inventory reduction (FX adjusted).

• Net debt reduced by SEK 1.2bn to SEK 14,471m; net debt/EBITDA (adj.) at 2.5x.

• Dividend proposal of SEK 1.00 per share, to be paid in two installments.

Outlook and guidance

• No expectation of another SEK 3bn inventory reduction in 2025, but continued focus on efficient working capital management and cost-saving initiatives, with SEK 500m in annual savings expected, mostly realized in 2025.

• Strategic focus remains on robotic mowers, battery-powered products, and professional market solutions, with cautious optimism for growth in robotics in 2025.

• Construction market in Europe expected to grow, while U.S. remains weak with slow recovery anticipated.

• Entering a new strategic period with a Capital Markets Day planned for Q4 2025.