This article first appeared on GuruFocus .
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Organic Sales Growth (2025):1% increase.
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Q4 Sales Decline:3% decrease.
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Cost Savings (2025):SEK 745 million.
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Net Debt Reduction (2025):Reduced to SEK 11.8 billion from SEK 14.5 billion.
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Net Debt-to-EBITDA Ratio:Improved to 2.1 from 2.5.
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Dividend Proposal:Increase to SEK 1.25 from SEK 1 per share.
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Robotic Lawnmowers Growth (2025):11% increase.
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Operating Income (Q4):SEK -841 million.
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Operating Cash Flow (Q4):Negative SEK 1.3 billion.
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Gardena Division Q4 Sales Decline:10% decrease.
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Construction Division Q4 Sales Growth:2% increase.
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Operating Margin (2025):6.2%, down from 6.6% in 2024.
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FX and Tariff Headwinds (Q4):SEK 150 million negative impact from tariffs.
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Cost Efficiency Program (2030):SEK 4 billion target, with SEK 800 million expected in 2026.
Release Date: February 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Husqvarna AB ( HSQVY ) achieved an organic sales growth of 1% in 2025 despite mixed demand and consumer sentiment challenges.
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The company successfully implemented a cost savings program, achieving SEK745 million in savings during 2025.
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Husqvarna AB ( HSQVY ) reduced its net debt significantly, improving its net debt-to-EBITDA ratio to 2.1 from 2.5.
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The Board proposed an increase in the dividend to SEK1.25 from SEK1, reflecting confidence in the company's financial position.
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Strong growth was observed in the robotic lawnmowers segment, with an 11% increase in 2025, particularly in the professional and premium residential offerings.
Negative Points
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Husqvarna AB ( HSQVY ) faced a sales decline of 3% in Q4, impacting volumes and bottom-line performance.
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The company experienced headwinds from tariffs and currency fluctuations, which negatively affected financial results.
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Operating income for Q4 was a loss of SEK841 million, attributed to lower volumes and negative impacts from FX and tariffs.
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Consumer sentiment remained weak, particularly in North America, affecting demand and sales performance.
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The Gardena division saw a 10% decline in organic sales in Q4, driven by weak consumer sentiment and declines in the Powered Garden segment.
Q & A Highlights
Q: Could you walk through the main items on the EBIT bridge for 2026 over and above cost saves of SEK800 million? What about FX, tariffs, and price? A: We expect a low single-digit price increase during 2026, particularly in the residential robotics sector. Currency impact is anticipated to be between SEK100 million to SEK200 million negative, compared to SEK315 million in 2025. Tariffs will have a gross impact of SEK200 million to SEK250 million, with at least half expected to be offset by mitigating actions. - Terry Burke, CFO
Q: Can you provide some insight into the early weeks of 2026 and how they compare to the previous year? A: It's early in the season, and we're in preparation mode, loading up channel partners. Our ambitions remain to see growth in 2026, as set out at the Capital Markets Day. Inventory levels in Europe are normal to slightly above normal, while North America has above-average inventory due to weak consumer sentiment. - Glen Instone, CEO
Q: How are you planning to mitigate the tariff impacts, and is it primarily through price increases? A: The mitigation is predominantly through pricing, with price increases already passed on during the second half of last year, carrying over into 2026. In some cases, we also look at supply and mitigation activities. - Glen Instone, CEO
Q: Could you elaborate on your inventory position and how much relates to products being phased out? A: We are in season preparation mode, building inventory as planned. We've been selling through obsolete inventory and are now at a much lower level compared to Q3. - Glen Instone, CEO
Q: How large is the share of sales from robotics and battery products for the full year? A: Robotics and battery products now account for 22% of our total sales, up from 20% previously, indicating a positive trend in this segment. - Terry Burke, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
