Strong growth for robotic mowers in uncertain market conditions

First quarter 2025

• Net sales amounted to SEK 14,704m (14,719). Changes in exchange rates contributed by 1%. Sales declined organically by 1%.
• Operating income was SEK 1,532m (1,930) and the operating margin was 10.4% (13.1). Changes in exchange rates impacted by SEK -140m.
• Items affecting comparability amounted to SEK -29m (0) and was related to the divestment of the Orangeburg production plant in SC, U.S.
• Excluding items affecting comparability, the operating income amounted to SEK 1,561m (1,930) and the operating margin was 10.6% (13.1).
• Earnings per share after dilution amounted to SEK 1.69 (2.31) and earnings per share excluding items affecting comparability and after dilution amounted to SEK 1.73 (2.31).
• Cash flow from operations and investments was SEK -96m (-1,057). Direct operating cash flow was SEK -1,212m (-1,614). 
• Net debt decreased to SEK 13.7bn (17.8). 

Significant event after the quarter

• Pavel Hajman will leave his position as Husqvarna Group CEO and Board Member by the end of 2025.

Strong growth for robotic mowers in uncertain market conditions

"In the first quarter we achieved 16% growth for robotic mowers, driven by both the professional and consumer markets. In addition, other newly introduced products had good sales, particularly in the European market. At the same time the market environment has continued to be challenging due to the ongoing economic uncertainty.

At Group level, net sales decreased organically by 1%, and operating profit, excluding items affecting comparability, amounted to SEK 1,561m (1,930). The decline was primarily due to weak performance in North America, impact from changes in exchange rates as well as negative price effects. This was partly offset by our cost-saving activities.

The Husqvarna Forest & Garden Division grew in the quarter, with good contribution from successful product launches in robotic mowers and handheld products. The Gardena Division also achieved good growth in the robotic mower segment. However, this was offset by decreased sales for watering solutions, due to continued cautiousness among our retail partners. The Husqvarna Construction Division delivered growth in Europe, while the challenging market situation in North America continued, leading to a decline in net sales.

Improved cash flow and reduced net debt
We are actively working to strengthen the cash flow through several initiatives, including a continued focus on inventory optimization. Direct operating cash flow improved by some SEK 400m. Net debt has decreased by SEK 4bn compared to previous year. Our strategic sale of the production facility in Orangeburg, SC, U.S., has successfully been completed during the quarter.

Focus on costs and operational improvements
We are entering this year's gardening season with an extensive product launch program and enhanced distribution capacity. At the same time, we are experiencing an unprecedented level of uncertainty in the broader economy, driven by rising trade tariffs, ongoing geopolitical instability and significant currency effects. These developments are expected to reduce customer demand and impact our financial performance. In response, we are implementing price increases and conducting a review of our supply chain to mitigate the effects. In addition, we remain focused on delivering on our cost-saving initiatives, improving cash flow and further intensifying our efforts to drive additional efficiencies. This includes product cost reductions and reduced complexity. We are also actively investing in and promoting the growth of services and aftermarket revenue streams.

As our new strategic period begins 2026, we are taking concrete steps to advance the next phase of our long-term strategy. A key component include prioritizing high-potential segments that offer the greatest opportunity for sustainable value creation, particularly through an increased focus on our professional product offerings. At the same time, we are intensifying efforts to drive efficiency across the Group and adopting a more asset-light operating model.

To summarize, while preparing and taking actions for an uncertain economic climate, the Group remains committed to the ongoing transformation and long-term value creation."

Pavel Hajman, CEO
 

Webcast presentation and telephone conference
A webcast presentation of the Q1 report hosted by Pavel Hajman, CEO 
and Terry Burke, CFO will be held at 10:00 CET on April 24, 2025.

To view the presentation, please use the link: 
https://husqvarnagroup.creo.se/b7876490-a2c7-4145-a980-49b5edee7fe6

The dial-in to the telephone conference (in order to ask questions):
+46 (0) 8 505 100 31 (Sweden) or +44 207 107 06 13 (UK)

Dates for Financial Reports 2025

Contacts
Terry Burke, CFO and Executive Vice President, Finance, IR & Communication 
+46 8 738 90 00
Johan Andersson, Vice President, Investor Relations 
+46 702 100 451

Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
Regeringsgatan 28, +46 8 738 90 00, www.husqvarnagroup.com

Reg. Nr: 556000-5331
NASDAQ OMX Stockholm: HUSQ A, HUSQ B

This report contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact person set out above, at 07.00 CET on April 24, 2025.

Factors affecting forward-looking statements
This report contains forward-looking statements in the sense referred to in the American Private Securities Litigation Reform Act of 1995. Such statements comprise, among other things, financial goals, goals of future business and financial plans. These statements are based on present expectations and are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, a material reduction in sales by important distributors, success in developing new products and in marketing, outcome of product responsibility litigation, progress in terms of reaching the goals set for productivity and efficient use of capital, successful identification of growth opportunities and acquisition objects, integration of these into the existing business and successful achievement of goals for making the supply chain more efficient.