Organic sales and earnings growth
First quarter 2026
- Net sales increased organically by 2%.
- Net sales declined by 5% to SEK 13,962m (14,704), and included an impact of -7% from changes in exchange rates.
- Operating income amounted to SEK 1,710m (1,532) and the operating margin was 12.3% (10.4).
- Excluding items affecting comparability, operating income amounted to SEK 1,718m (1,561), and the operating margin was 12.3% (10.6).
- Earnings per share after dilution amounted to SEK 2.05 (1.69) and earnings per share excluding items affecting comparability and after dilution amounted to SEK 2.06 (1.73).
- Free operating cash flow was SEK -1,137m (-131). The alternative performance measure free operating cash flow will replace direct operating cash flow as of the first quarter of 2026.
- Net debt increased to SEK 13.8bn (13.7).
CEO Comment
We delivered a solid first quarter with positive development across all three of our financial targets: organic growth, improved operating margin, and higher return on capital employed. While geopolitical developments increased uncertainty, we had good sell-in to our channel partners, and our new product launches supported a positive start to the year.
Organic sales and earnings growth
In the quarter, net sales amounted to SEK 13,962m (14,704), with organic growth of 2%. Net sales increased organically by 3% in the Forest & Garden Division and by 1% in the Construction Division. Organic sales in the Gardena Division declined by 1%.
Operating income, excluding items affecting comparability (IAC), improved by 10% to SEK 1,718m (1,561). The operating margin increased to 12.3% (10.6), with improvements in two of our divisions. The result was mainly driven by higher volumes, a positive product mix, and cost savings ahead of plan, successfully mitigating tariffs and currency headwinds. Free operating cash flow amounted to SEK -1,137m (-131), due to higher working capital, mainly related to timing.
Good start to the season
The good start to the season reflects our strength in product innovation and ongoing portfolio development. The Husqvarna robotic mower range was enhanced, for both the professional and residential segments. I am pleased with the successful launch of a new platform for small and mid-sized gardens, which has been very well received in the market. An expanded lineup, and targeted sponsorship activities, for example in golf with the DP World Tour and Husqvarna British Masters, are set to further increase brand visibility. New Gardena watering products clearly contributed to the performance, while the Husqvarna Construction Division's new generation of floor saw blades further reinforced our leadership in the sawing and drilling segment.
Focused strategy execution
We are refining our operating model by establishing Business Portfolio Units (BPUs), which enhance accountability and strengthen performance management. Within the Forest & Garden Division, the structure was defined more clearly with the appointment of several new BPU leaders, allowing greater focus and expertise across the units, alongside notable progress on the North American Wheeled turnaround. We also continued to advance our turnaround plans for the BPUs Powered Garden within the Gardena Division, as well as Compaction Placement and Demolition in the Construction Division.
Furthermore, our recently announced savings program commenced successfully, with broad based contributions from initiatives including cost efficient sourcing, design simplification of newly launched products, and complexity reduction, delivering approximately SEK?245m in quarterly savings.
Strong product lineup and active cost mitigation
While uncertainty remains due to ongoing and recent geopolitical developments, we remain confident in our strong product lineup for 2026 and our execution plans. At the same time, we are taking targeted actions to mitigate continued cost pressures by building and executing a robust pipeline of savings initiatives and more structurally efficient ways of working.
Glen Instone, CEO
Webcast presentation and telephone conference
A webcast presentation of the Q1 interim report hosted by Glen Instone, CEO and Terry Burke, CFO will be held at 9:00 CEST on April 23, 2026.
To view the presentation, please use the link.
The dial-in to the telephone conference (to ask questions):
+46 (0) 8 505 100 31 (Sweden) or +44 207 107 06 13 (UK)
Contact
Emelie Alm, Vice President, Investor Relations
+46 70 514 64 14
Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
Hälsingegatan 49, +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. The information was submitted for publication, through the contact person set out above, at 07.00 CET on April 23, 2026.
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.
