Husqvarna (HUSQ) Q4 2025 earnings summary

Executive summary

• Achieved 1% organic sales growth for FY 2025 despite soft consumer sentiment, global economic uncertainty, and mixed demand, particularly in North America; Europe showed more resilience.

• EBIT declined due to FX, tariffs, and pricing pressures, but cost savings programs delivered SEK ~2bn in run-rate savings.

• Management changes announced: new head for Forest and Garden division, CFO and another executive to depart in 2026.

• Robust product innovation pipeline, with strong launches in robotics, battery, and construction segments for 2026.

• Continued execution on the 2030 Strategy, focusing on operational excellence, aftermarket solutions, and portfolio management, targeting SEK 4bn in annual savings by 2030.

Financial highlights

• Full-year organic sales growth of 1%; Q4 organic sales declined 3%.

• Q4 net sales were SEK 7,429m, with operating income at SEK -841m and margin -11.3%.

• Full-year operating margin at 6.2%, down from 6.6% in 2024.

• SEK 745m in cost savings achieved in 2025; SEK 2bn in savings from 2022-2024.

• Net debt reduced to SEK 11.8bn from SEK 14.5bn; net debt/EBITDA at 2.1.

• Dividend proposed to increase from SEK 1 to SEK 1.25 per share, payout ratio ~40%.

Outlook and guidance

• Targeting 3%-5% net sales growth and operating margin above 10% in the next 2-3 years; ROCE target set at 15% over the business cycle.

• SEK 4bn cost efficiency program to be fully realized by 2030, with ~60% of savings expected by 2026.

• Price increases expected to be low single-digit in 2026; currency and tariff headwinds to persist but at reduced levels.

• Marketing investments to rise by 1-2 percentage points of sales, but only marginally in 2026.

• Ongoing uncertainty in North America due to trade policy, FX volatility, and subdued consumer sentiment.