Husqvarna AB
OTC:HUSQF
Husqvarna AB
Founded in 1689 as a Swedish firearms manufacturer, Husqvarna AB has journeyed through centuries, evolving into one of the world’s leading producers of outdoor power products. Over time, the company skillfully repositioned itself from armaments to sophisticated machinery, pivoting to chainsaws, trimmers, and robotic lawn mowers. This transformation, rooted in its ability to adapt to changing markets and technologies, underscores its strategic agility. By embracing innovation, specifically in battery technology and autonomous solutions, Husqvarna ensures that it meets the growing demand for sustainability and convenience in lawn care and gardening.
Husqvarna operates through a diverse business model that stands on three main pillars: forestry, lawn, and garden products, watering solutions, and construction equipment. The company caters primarily to consumers, professionals, and commercial entities, thus ensuring a well-rounded market presence. Their revenue streams flow robustly from the sales of outdoor equipment and the associated accessories and parts, which are indispensable for maintenance and upgrades. Additionally, the company's strategic focus on research and development has spawned cutting-edge innovations, such as the Husqvarna Automower® line, reinforcing its market leadership in robotic lawn mowers. Through this multifaceted approach, Husqvarna skillfully monetizes its engineering prowess while tapping into the rising trends towards automation and environmental consciousness.
Founded in 1689 as a Swedish firearms manufacturer, Husqvarna AB has journeyed through centuries, evolving into one of the world’s leading producers of outdoor power products. Over time, the company skillfully repositioned itself from armaments to sophisticated machinery, pivoting to chainsaws, trimmers, and robotic lawn mowers. This transformation, rooted in its ability to adapt to changing markets and technologies, underscores its strategic agility. By embracing innovation, specifically in battery technology and autonomous solutions, Husqvarna ensures that it meets the growing demand for sustainability and convenience in lawn care and gardening.
Husqvarna operates through a diverse business model that stands on three main pillars: forestry, lawn, and garden products, watering solutions, and construction equipment. The company caters primarily to consumers, professionals, and commercial entities, thus ensuring a well-rounded market presence. Their revenue streams flow robustly from the sales of outdoor equipment and the associated accessories and parts, which are indispensable for maintenance and upgrades. Additionally, the company's strategic focus on research and development has spawned cutting-edge innovations, such as the Husqvarna Automower® line, reinforcing its market leadership in robotic lawn mowers. Through this multifaceted approach, Husqvarna skillfully monetizes its engineering prowess while tapping into the rising trends towards automation and environmental consciousness.
CEO Transition: CEO Pavel Hajman announced he will step down by year-end to enable a new leader to guide Husqvarna through its next strategy cycle.
Robotics Growth: Robotic mower sales surged 16% in Q1, with boundary wire-free models now making up more than half of residential robotic sales.
Profitability Pressure: Group EBIT declined by SEK 400 million to SEK 1.6 billion, mainly due to currency effects, lower prices, and weak North American performance.
Cost Savings: Cost-saving programs delivered SEK 210 million in Q1 and are on track to deliver an additional SEK 400 million in savings for the year.
Tariff Impact: New tariffs are expected to have a net negative impact of SEK 300–500 million on EBIT in 2025, even after price increases and other mitigation efforts.
Cash Flow & Debt: Cash flow improved by SEK 400 million, and net debt was reduced by SEK 4 billion to SEK 13.7 billion year-on-year.
Market Divergence: European markets are relatively stable with some growth, while North America continues to be weak across all divisions.
