Husqvarna Ab Stock Earnings Reports

Husqvarna reported a mixed Q2 2026: organic sales declined ~4% (after a strong Q1) with weakness in Europe and an 11% drop in Gardena, while North America grew across divisions. Operating income for Q2 was SEK 1.95bn (13.6% margin), roughly in line with last year helped by a SEK 240m tariff refund recognized in COGS. Management is accelerating its cost-out program: SEK 385m savings added in Q2 (SEK 630m run-rate year-to-date) and they now target SEK 3bn of savings effective by end-2028 (maintaining a SEK 4bn ambition by 2030). Strategic portfolio moves include an intended exit of the stone diamond tools business (impacting ~SEK 250m sales through remainder of 2027) and moving the Powered Garden BPU into a formal strategic review. Operational improvements cited: logistics supplier consolidation, warehouse consolidation, and manufacturing footprint adjustments (e.g., shifting certain Gardena production to Czech Republic). Robotics (Husqvarna Automower) showed modest growth overall year-to-date but was slightly down in H1 vs prior, with inventories elevated in Germany and the U.S. Financial position strengthened: strong free operating cash flow (SEK 3.9bn in Q2, SEK 2.8bn YTD), inventories ~4% higher vs prior year (currency adjusted), net debt down to SEK 11.8bn with net debt/EBITDA ~2.0, ROCE 7.4%, and S&P rating BBB- stable. Key risks remain: weaker consumer sentiment, adverse weather, FX, and estimated Middle East-related raw material/logistics inflation of ~SEK 300–350m for the year.