Husqvarna Group swung to a third-quarter operating loss as falling sales in its Husqvarna Forest & Garden Division and higher costs offset growth at the Gardena Division.
The Swedish outdoor equipment maker recorded a SEK 334 million operating loss for the quarter ended Sept. 30, compared with a SEK 141 million profit a year earlier. Sales fell 2% to SEK 9,012 million, while organic sales declined 5%. Currency movements had a positive 3% effect on reported sales.
Organic sales in Forest & Garden fell 10%. Husqvarna attributed the decline to drought across much of Europe and weak consumer demand in Germany and France. Gardena’s organic sales rose 8%, helped by growth in its Watering business in Europe and North America. Organic sales in the Husqvarna Construction Division were unchanged.
Husqvarna said fewer sales and a less profitable product mix weighed on earnings. Efforts to reduce inventories and higher raw material and logistics costs added to the pressure. Excluding SEK 88 million in charges mainly tied to its cost program, the operating loss was SEK 246 million, against a SEK 140 million profit a year earlier.
Free operating cash flow was SEK 2,422 million, nearly matching SEK 2,423 million a year earlier as inventory reductions helped offset weaker earnings. Net debt stood at SEK 9,400 million on Sept. 30, down from SEK 9,911 million a year earlier.
Husqvarna recorded about SEK 935 million in savings during the first nine months of 2026, including about SEK 305 million in the third quarter. The company said sourcing changes and personnel reductions were the main drivers of those savings. It targets SEK 3 billion in gross savings by the end of 2028 and plans to shift manufacturing of some Husqvarna-branded battery handheld products from Europe to Asia. Husqvarna CEO Glen Instone said “near-term headwinds are expected to remain.”
For January through September, sales fell 5% to SEK 37,356 million, and operating income declined to SEK 2,977 million from SEK 3,735 million. The nine-month result included SEK 240 million in tariff refunds recognized in the second quarter.
Husqvarna aims to provide an update on its review of Gardena’s Powered Garden business in early 2027. Its year-end report is scheduled for Feb. 3, 2027.
