Husqvarna reports 9% sales drop in 2024
In Q4 2024, Husqvarna’s net sales declined by 3%. For the calendar year 2024, net sales decreased by 9% to SEK 48,352m (~$4,449m). Planned exits of low-margin petrol-powered business impacted with -2%. Sales declined organically by 7%.
Note: on Feb. 7 at 10 am EST, 1 SEK = 0.092 USD
Strong cash flow during a challenging year
In 2024, Husqvarna said it accelerated its focus on executing the strategy and adapting the organization to drive efficiency and continued transformation. This enabled significant cost savings, strong cash flow, and implementation of a comprehensive product launch program for the 2025 season.
Challenging market conditions in the fourth quarter
The year’s challenging market situation continued into the fourth quarter, with subsequently lower consumer demand. The group’s sales declined organically by 3% and the operating income, excluding items affecting comparability, amounted to SEK -694m (~$64m) for the fourth quarter.
In the Husqvarna Forest & Garden Division, organic growth was unchanged for the quarter, with growth in handheld and wheeled products, as well as in parts and accessories. Sales in the Gardena Division decreased, with growth for hand tools, while sales of watering products declined. In the Husqvarna Construction Division, sales declined in North America due to a continuation of the challenging market situation, however, our sales increased in Europe.
Improving results in North America
In recent years, the Husqvarna Forest & Garden Division has taken decisive actions to improve results in North America. The company said it has discontinued low-margin business and consolidated the production structure. The company is now entering the next step where it divests from a manufacturing facility in Orangeburg, S.C., to Flex Ltd. The company’s new long-term supplier agreement with Flex, it said, will ensure continued production of the division’s wheeled products and assembly of handheld products in the U.S. Related cost savings are expected to amount to SEK 350m (~ $32M) by 2030.
Strategic transformation continues
During the year, the share of Husqvarna products that are electrified reached 44% of our sales of motorized products. Connected devices grew to 4.9 million. For robotic mowers, net sales amounted to SEK 7.2bn (~ $700M). Husqvarna sales grew in the professional robotics market. However, sales in the residential segment declined due to increased competition in the low-value segments, as well as restrained consumer spending, particularly for the high value segments. For the 2025 season, it has significantly expanded its range of robotic mowers with new boundary wire-free robotic mowers.
Sustainability targets
Husqvarna said its ambition to electrify the product range is the main enabler to consistently reduce its carbon footprint. To date, it has reduced CO₂ emissions (Scope 1, 2 and 3) by -56% compared with the base year of 2015, exceeding its target of a -35% reduction by 2025. The company is exploring alternative fuels for some products.
