Husqvarna Ab Stock Earnings Reports

Husqvarna Group reported a solid start to 2026: 2% organic sales growth and a 10% expansion in EBIT to just over SEK 1.7 billion, yielding a 12.3% operating margin. Growth was driven by strong product mix and the early impact of the SEK 4 billion cost-out program (SEK 245 million delivered in Q1). Innovation and product launches—notably in residential and professional robotics, watering (Gardena), handhelds and new construction saw blades—are central to the strategy. Divisional performance: Husqvarna Forest & Garden grew ~3% organically (robotics and handhelds strong); Gardena was down ~1% organically but watering grew while Powered Garden declined; Construction grew ~1% with sawing/drilling and surface preparation strength offsetting weak compaction/demolition. Headwinds include currency, tariffs and raw-material/logistics inflation: management estimates up to ~SEK 300 million full-year impact from recent geopolitical/logistics pressures (approx. SEK 200m raw materials, SEK 100m logistics) and now expects a gross tariff exposure of ~SEK 150 million for the year (SEK 85m already in Q1). Cash and balance-sheet highlights: free operating cash flow was negative in Q1 due to timing (higher receivables, lower payables) but is expected to normalize in Q2; net debt/EBITDA improved to ~2.0 (from 2.5), net debt roughly flat at SEK 13.8bn, ROCE improved to 7.6%. Inventory is intentionally higher entering the season and management says trade inventories are largely normalized. Management reiterated strategic portfolio management, continued investments in transformation, and the SEK 800m full-year cost savings target remains in place.