Husqvarna AB Q2 2025 Financial Highlights and Market Insights

Key Performance Metrics:

• Organic Sales Growth: 5% increase driven by Forest and Garden, Gardena divisions.
• Operating Income: Up 7% to SEK2,041 million with improved margins.
• Cash Flow: Direct operating cash flow at SEK2.4 billion.
• Net Debt Reduction: SEK3.3 billion decrease compared to last year.
• Robotics and Battery Sales: 22% of group sales, up from 20%.

Division Performance:

• Husqvarna Forest and Garden: 5% organic growth; operating margin at 13.3%.
• Gardena Division: 7% organic growth; operating margin at 17.5%.
• Construction Division: 4% organic sales decline; improved operating margin to 12.7%.

Operational Insights:

• Inventory Reduction: Nearly SEK3 billion down from last year.
• Debt Ratios: Net Debt/EBITDA improved to 2.3%.
• External Impacts: Negative currency effect of SEK125 million; tariff impact of SEK65 million.

Market Dynamics:

• Challenges in North America with lower sales and operating income across divisions.
• Competition in robotic mowers with notable performance in the pro segment.

Sustainability Progress:

• Achieved two out of three sustainability targets, including a 55% CO2 emission reduction.

Investor Outlook:

• Despite market challenges, strong growth in specific segments and continued investment in innovation.

For detailed insights and answers to investor queries, refer to the full earnings call transcript.

Husqvarna AB’s Impressive Q2 2025 Performance: A Deep Dive into Financial Growth

On July 18, 2025, Husqvarna AB (HSQVY) unveiled its second-quarter financial results, showcasing notable achievements and a firm position within the competitive landscape of the forestry and gardening industry. Here’s an in-depth look at the highlights from the earnings call.

Organic Sales Growth: 5% Surge

The standout news from this quarter was Husqvarna’s 5% organic sales growth, primarily fueled by exceptional performance in the Husqvarna Forest and Garden and Gardena divisions. These divisions have continually shown resilience and innovation, highlighting their critical role in the company’s overall strategy.

Operating Income Boost

Husqvarna achieved a 7% increase in operating income, totaling SEK 2,041 million. This growth was complemented by a 1% point improvement in operating margin, demonstrating effective cost management and operational efficiencies across all divisions.

Robust Cash Flow Management

With direct operating cash flow reaching SEK 2.4 billion, Husqvarna reinforced its financial health, enabling continued investment in growth and innovation. This strong flow is a significant factor in the company’s resilience against economic fluctuations.

Net Debt Reduction

One of the most impressive achievements is the SEK 3.3 billion net debt reduction compared to the same period last year. This strategic move not only enhances the company’s balance sheet but also positions Husqvarna for sustained growth and flexibility in the face of future challenges.

Robotics and Battery Sales Growth

The company’s focus on innovation is evident with robotics and battery sales accounting for 22% of group sales, a marked increase from 20% on a 12-month rolling basis. This reflects the growing consumer shift towards automated gardening solutions, showcasing Husqvarna’s market leadership in this segment.

Performance by Division

• Husqvarna Forest and Garden Division: Reported 5% organic sales growth with a commendable operating margin of 13.3%.
• Gardena Division: Outperformed with 7% organic sales growth and an even more robust operating margin of 17.5%.
• Construction Division: Experienced a 4% organic sales decline but managed to improve its operating margin to 12.7%, reflecting strategic adjustments amidst challenging market conditions.

Inventory and Debt Metrics

Husqvarna also effectively reduced its inventory by close to SEK 3 billion year-over-year, indicating efficient stock management practices. Moreover, the net debt/EBITDA ratio improved to 2.3%, down from 2.5% at the year’s start, further underscoring the company’s commitment to financial prudence.

Challenges and Market Dynamics

Despite these successes, global economic uncertainties linger. The company reported a negative currency impact of SEK 125 million and tariff impact of SEK 65 million during the quarter. Additionally, North America remained a challenging market, with lower sales across all divisions. The Construction division was particularly affected, primarily due to weak market conditions, underscoring the need for strategic responses.

Looking Ahead

Questions during the earnings call highlighted the competitive landscape, especially in the robotic mower segment. While competition from Asian manufacturers is intensifying, Husqvarna maintains strong dealer loyalty and prioritizes R&D to stay ahead. The growing share of boundary wire-free robotics, now at 75% in residential sales value, reflects changing consumer preferences and a strategic focus on innovation.

Conclusion

Husqvarna AB’s Q2 results paint a picture of a company not only navigating challenges but thriving through strategic focus on growth, cost management, and innovation. By continuing to invest in its core divisions and sustainable practices, Husqvarna is well-positioned to build on this quarter’s achievements as it moves forward into an uncertain economic landscape.

For a more comprehensive understanding, be sure to check the complete earnings call transcript for additional insights and financial details. Husqvarna’s performance indicates a promising future, fueled by a blend of innovation and strategic execution.