Husqvarna says weak Europe offsets North American gains
Husqvarna Group reported lower second-quarter sales and earnings as weak consumer demand and unfavorable weather in Europe weighed on results, while North America continued to show solid growth.
For the second quarter ended June 30, net sales declined 6% to SEK 14.4 billion from SEK 15.3 billion a year earlier. Organic sales decreased 4%, while operating income fell to SEK 1.6 billion from SEK 2.1 billion. Excluding items affecting comparability, operating income totaled SEK 1.95 billion and the operating margin improved slightly to 13.6% from 13.4%.
For the first six months of 2026, net sales declined 5% to SEK 28.3 billion, with organic sales down 1%. Operating income totaled SEK 3.3 billion, while operating income excluding items affecting comparability increased slightly to SEK 3.67 billion.
“Following a solid start to the year, with strong sell-in to channel partners supported by successful product launches, trading conditions were challenging in the second quarter. Ongoing geopolitical uncertainty and weak consumer sentiment continued to weigh on demand, while unfavorable weather in Europe during the first six weeks of the quarter further slowed sell-out and replenishment. North America continued its recovery, delivering solid growth across most product categories,” said Glen Instone, CEO.
The company said the decline was driven primarily by an 11% organic sales decrease in the Gardena Division and a 3% decline in the Husqvarna Forest & Garden Division. Husqvarna Construction Division posted 5% organic growth during the quarter.
Within the Husqvarna Forest & Garden Division, second-quarter net sales declined 4% to SEK 8.34 billion as weak consumer sentiment in Europe reduced sales of wheeled products. For the first half of the year, sales of robotic mowers and handheld products increased, while wheeled product sales declined.
The Gardena Division reported a 13% decline in second-quarter sales to SEK 4.07 billion, reflecting broad-based weakness in Europe, particularly for powered garden products, electric products, Gardena-branded robotic mowers and watering products.
Husqvarna Construction Division reported stronger performance, with second-quarter sales increasing 3% to SEK 1.93 billion. Organic growth reached 5%, driven by sawing and drilling equipment and aftermarket sales across all regions.
The company said it is expanding its cost-saving efforts and now targets SEK 3 billion in savings by the end of 2028. During the quarter, Husqvarna continued warehouse consolidation efforts, announced plans to discontinue its non-core stone diamond tools business and initiated plans to consolidate portions of Gardena’s German production into Czech facilities.
“We are therefore raising our ambition and now target savings of SEK 3 billion by end of 2028,” Instone said.
Looking ahead, Instone said the company expects market challenges to continue.
“While external headwinds are expected to persist, we remain committed to our transformation towards profitable growth. Supported by our strong portfolio of brands and products, a continued focus on operational excellence, strategic portfolio management, and an enhanced aftermarket offering, we are confident in our ability to create customer value and deliver profitable growth over the long term.”
