Husqvarna posts adjusted operating loss of 246 million kronor in third quarter
Key Facts
Husqvarna Group swung to an adjusted operating loss of 246 million Swedish kronor in the third quarter of 2026, according to its earnings release, as sales declined and costs came under pressure. The group had posted an adjusted operating profit of 140 million kronor in the corresponding period of 2025. The adjusted operating margin fell to negative 2.7%, compared with positive 1.5% a year earlier. Net sales totaled 9,012 million kronor, compared with 9,204 million kronor in the corresponding quarter. Organic sales fell 5%, while exchange-rate movements had a positive impact of 3% on sales.
The company attributed the deterioration in profitability to lower sales volumes in its Husqvarna Forest & Garden division, alongside an unfavorable product mix. Inventory reductions and higher raw material and logistics costs also weighed on profitability, according to the group's release. The division recorded a 10% decline in organic sales during the quarter, as weather conditions and demand affected its business. Husqvarna said widespread drought in Europe hurt the division's performance during the period. It added that consumer demand remained weak in key markets, including Germany and France.
By contrast, the Gardena division delivered organic sales growth of 8% in the third quarter, according to the group's results. The company attributed its performance to strength in watering products, which supported sales during the period. The division also gained market share in key markets, according to the release. The group said sales at its Husqvarna Construction division were "unchanged" on an organic basis during the quarter. Good momentum continued in the division's aftermarket products and services business, alongside stable organic sales.
On a reported basis, the group posted an operating loss of 334 million kronor, compared with a profit of 141 million kronor a year earlier. The result included a negative impact of 88 million kronor from items affecting comparability. These items were mainly related to the implementation of cost-cutting initiatives, according to the company, adding implementation costs to operating pressures during the quarter. As part of its savings efforts, Husqvarna achieved quarterly savings of about 305 million kronor, driven mainly by sourcing activities and workforce reductions. Cumulative savings from the start of the year through September totaled about 935 million kronor, despite the continued decline in operating profitability during the period.
On liquidity, free operating cash flow totaled 2,422 million kronor in the third quarter, according to Husqvarna's release. That compared with 2,423 million kronor in the corresponding period a year earlier, leaving it almost stable despite the swing to an operating loss. The group said improved working capital offset the decline in operating income in the cash flow calculation. Inventory reductions, which it also listed among the reasons for the deterioration in profitability, were a key factor in this improvement. Net debt fell to 9.4 billion kronor at the end of the quarter, compared with about 9.9 billion kronor a year earlier.
For the January-September 2026 period, the group's adjusted operating profit totaled 3,421 million kronor. That compared with a profit of 3,742 million kronor in the corresponding period of 2025, according to the company's results. Husqvarna had recorded an adjusted operating profit of 1,950 million kronor in the second quarter, compared with 2,041 million kronor in the corresponding quarter. The adjusted operating margin for that quarter was 13.6%, compared with about 13.4% a year earlier, according to its first-half earnings release. The company scheduled its third-quarter results presentation and analyst conference for 09:00 Central European Summer Time on the day of the results announcement. Chief Executive Glen Instone and Chief Financial Officer Patrik Jonsson will participate in the presentation, according to the group's invitation.