Husqvarna (HUSQ) Q3 2026 earnings summary

Executive summary

• Q3 net sales were SEK 9,012m, down 2% reported and 5% organically; operating income excluding IAC was SEK -246m, while free operating cash flow was SEK 2,422m.

• Weak European demand and drought weighed on results; North America continued to grow across all three divisions, with Gardena Watering providing an additional offset.

• Lower volumes, inventory reductions and cost inflation pressured profitability; cost savings, asset-light initiatives and debt reduction continued.

Financial highlights

• Q3 EBIT bridge included volume/mix of -SEK 470m, cost inflation of -SEK 315m and cost savings of +SEK 305m; operating income excluding IAC was SEK -246m versus SEK 140m.

• Jan-Sep operating income excluding IAC was SEK 3,421m, down 9% YoY; savings of SEK 935m partly offset volume/mix headwinds of SEK 785m.

• Q3 EBITDA was SEK 426m versus SEK 882m; free operating cash flow was SEK 2,422m versus SEK 2,423m. Jan-Sep free operating cash flow was SEK 4,891m versus SEK 4,743m.

• Q3 net income was SEK -404m versus SEK -10m, and diluted EPS was SEK -0.70 versus SEK -0.02; Q3 gross margin was 24.9% versus 28.0%.

• Jan-Sep results included SEK 240m of IEEPA-related tariff refunds in COGS; paid tariffs had a negative SEK 85m YoY effect on operating income.

Outlook and guidance

• FY cost inflation is expected at SEK 900m–SEK 1bn, with roughly two-thirds from raw materials and one-third from logistics; Middle East-related inflation is expected to total SEK 350–400m in 2026, with SEK 250m carrying into 2027.

• FY 2026 savings are expected to exceed SEK 1bn; the program targets SEK 3bn by end-2028 within a full program exceeding SEK 4bn by 2030.

• Targeted pricing, supply-chain actions and product-cost optimization are expected to partly offset cost pressures; near-term headwinds are expected to persist.

• Q4 is seasonally the smallest sales quarter, with a shift toward handheld products from lawn care and lower-than-normal inventory buildup expected.

• An update on the Gardena Powered Garden strategic review is targeted for early 2027; selective pricing is expected to produce a small net increase for the 2027 season.