Challenging market conditions in Europe, while solid growth in North America
Second quarter 2026
- Net sales decreased organically by 4%.
- Net sales declined by 6% to SEK 14,383m (15,277), and included an impact of -2% from changes in exchange rates.
- Operating income amounted to SEK 1,600m (2,063) and the operating margin was 11.1% (13.5).
- Items affecting comparability (IAC) amounted to SEK -349m. These were primarily related to the execution of cost-saving initiatives, as well as a write-down associated with the Brastad factory.
- Excluding IAC, operating income amounted to SEK 1,950m (2,041), and the operating margin was 13.6% (13.4).
- IEEPA-related tariff refunds of SEK 240m were recognized in COGS.
- Earnings per share (EPS) after dilution amounted to SEK 1.80 (2.76) and EPS excluding IAC and after dilution amounted to SEK 2.27 (2.73).
- Free operating cash flow was SEK 3,903m (2,459).
- Net debt was SEK 11.8bn (12.3).
January - June 2026
- Net sales declined organically by 1%.
- Net sales declined by 5% to SEK 28,344m (29,981), and included an impact of -4% from changes in exchange rates.
- Operating income amounted to SEK 3,311m (3,594) and the operating margin was 11.7% (12.0).
- Items affecting comparability (IAC) amounted to SEK -357m. These were primarily related to the execution of cost-saving initiatives, as well as a write-down associated with the Brastad factory.
- Excluding IAC, operating income amounted to SEK 3,667m (3,602), and the operating margin was 12.9% (12.0).
- Earnings per share (EPS) after dilution amounted to SEK 3.85 (4.45) and EPS excluding IAC and after dilution amounted to SEK 4.32 (4.46).
- Free operating cash flow was SEK 2,766m (2,329).
CEO Comment
Following a solid start to the year, with strong sell-in to channel partners supported by successful product launches, trading conditions were challenging in the second quarter. Ongoing geopolitical uncertainty and weak consumer sentiment continued to weigh on demand, while unfavorable weather in Europe during the first six weeks of the quarter further slowed sell-out and replenishment. North America continued its recovery, delivering solid growth across most product categories.
European weakness impacted performance
In the quarter, net sales amounted to SEK 14,383m (15,277), corresponding to organic growth of -4% compared with a strong second quarter last year. The decline was primarily driven by an 11% organic sales decrease in the Gardena Division and a 3% decline in the Husqvarna Forest & Garden Division, while the Husqvarna Construction Division delivered organic growth of 5%.
Operating income, excluding IAC, amounted to SEK 1,950m (2,041), with the margin improving to 13.6% (13.4). The result included IEEPA-related tariff refunds of SEK 240m. Excluding the tariff refunds, earnings were impacted by lower sales volumes, continued inflationary pressure, higher raw material and logistics costs, as well as negative currency effects.
Free operating cash flow improved to SEK 3,903m (2,459), driven by reductions in working capital. Our financial position remained solid and we reduced net debt to SEK 11.8bn (12.3).
Accelerating savings and operational excellence
While we continue to make progress with our cost savings program, and we have now reached run-rate savings of approximately SEK 630m, with a quarterly contribution of SEK 385m, the benefits are not yet enough to fully offset the external headwinds we face. We are therefore raising our ambition and now target savings of SEK 3 billion by end of 2028.
During the year, we have closed several warehouses in Europe within the Construction Division, while additional consolidation initiatives are underway across the Group. We also completed our first Group-wide transportation tender, reducing our supplier base by two-thirds and leveraging the Group's scale.
During the quarter, we announced the planned discontinuation of our non-core stone diamond tools business within the Husqvarna Construction Division. In Gardena, we are accelerating the turnaround plans as presented at our Capital Market Day in December, into a strategic review of the Powered Garden Business Portfolio Unit (BPU). We are strengthening OEM partnerships across the portfolio to support a more asset-light and flexible operating model, while implementing a leaner organization with clearer roles and accountability.
We are also optimizing our manufacturing footprint. During the quarter, we initiated the process to consolidate parts of Gardena's German production into our Czech facilities, enabling us to leverage the strengths of each site and use our manufacturing network more efficiently.
Executing on our transformation agenda in a challenging environment
We recently announced changes to our Group Management team and are pleased to welcome four new members. Our new Chief Financial Officer, Chief Procurement Officer, and President of the Husqvarna Construction Division will join in the third quarter, followed by our new Chief Information Officer at the end of the year. They bring fresh perspectives, new capabilities, and valuable experience that will strengthen our foundation and help accelerate performance.
While external headwinds are expected to persist, we remain committed to our transformation towards profitable growth. Supported by our strong portfolio of brands and products, a continued focus on operational excellence, strategic portfolio management, and an enhanced aftermarket offering, we are confident in our ability to create customer value and deliver profitable growth over the long term.
Glen Instone, CEO
Webcast presentation and telephone conference
A webcast presentation of the Q2 interim report hosted by Glen Instone, CEO and Terry Burke, CFO will be held at 9:00 CEST on July 17, 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 +44 203 059 58 63
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 and the Securities Market Act. The information was submitted for publication, through the contact person set out above, at 07.00 CEST on July 17, 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.
