Slides
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Q4 and FY 2025 Results – February 4, 2026 Glen Instone, CEO Terry Burke, CFO
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2 Full-year 2025 Organic sales growth despite soft consumer sentiment • Mixed demand • EBIT decline related to headwinds from FX, tariffs and price • Successfully delivering on cost savings • Solid financial position and reduced net debt • Proposal of increasing dividend to SEK 1.25 (1.00) Executing on the 2030 Strategy • New cost-efficiency measures • Improving performance management • Strong product pipeline and new innovations for 2026
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Growth Operating margin Return on Capital Employed 2% 1% 6% 15% -1% -5% -7% 1% 2018 2019 2020 2021 2022 2023 2024 2025 TARGET: Organic growth 3-5% TARGET: >10% Operating margin TARGET: 15% ROCE 7,9% 9,3% 10,7% 12,1% 9,0% 9,3% 6,6% 6,2% 10,0% 2018 2019 2020 2021 2022 2023 2024 2025 2030 11,2% 12,2% 13,3% 17,7% 11,6% 10,8% 7,2% 7,1% 15,0% 2018 2019 2020 2021 2022 2023 2024 2025 2030 TARGET TARGET 15% >10% TARGET GROWTH RATE p.a 3-5% New Financial targets: focus on growth and margin expansion Note: all three targets over a business cycle. Operating margin and Return on Capital Employed excluding items affecting comparability.
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4 Q4 Summary Organic sales decline of 3% in the seasonally smallest quarter • Mixed demand with restrained consumer sentiment, mainly in North America • Growth in robotics and power cutters for the professional segment and several residential product categories in Europe • Lower volumes, headwinds from FX and tariffs significant impact on EBIT
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DIRECT OPERATING CASH FLOW SEK -1,331 m (582) NET SALES SEK 7,429 m (8,464) ORGANIC SALES DECLINE OF 3% ROBOTIC LAWNMOWERS 11% growth FY 2025 OPERATING INCOME SEK -841 m ( -694) MARGIN -11.3 % (-8.2) SEK • Inventory build-up ahead of the gardening season, with flat development yoy • Net debt reduced by SEK 2.7bn compared to last year • Net debt/EBITDA was 2.1 (2.5) • Organic sales decline in the Husqvarna Forest & Garden and Gardena Divisions • Challenging market conditions in North America • Organic sales growth in the Construction Division • Strong growth in pro robotics • Husqvarna British Masters and mowing partner on the DP World Tour • Expanded golf offering through partnership with Relox Robotics • Lower volumes • Negative impact from currency effects and tariffs • Delivering on cost savings programs Note: Operating income and Net debt/EBTIDA ratio excluding items affecting comparability Q4 Summary
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Husqvarna Forest & Garden Division Q4: Organic sales decline of 3%; operating margin at -7.5% • Challenging sentiment in North America • Growth in several residential categories in Europe and pro robotics • Operating income impacted by negative effects from lower volumes and tariffs FY 2025: Organic growth 3%; operating margin at 7.8% Note: Operating income excluding items affecting comparability
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Gardena Division Note: Operating income excluding items affecting comparability Q4: Organic growth -10%; operating margin at -38.3% • Decline in electric and watering products North America • Growth in the watering business in Europe • Operating income declined due to lower volumes FY 2025: Organic growth -3%; operating margin at 6.4%
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Husqvarna Construction Division Note: Operating income excluding items affecting comparability Q4: Organic growth 2%; operating margin at 3.9% • Growth for power cutters and aftermarket sales • Growth in North America • Operating income decline related to negative impact from currency effects and tariffs FY 2025: Organic growth -2%; operating margin at 8.9%
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Q4 EBIT bridge (ex. IAC) Q4 2024 Volume / mix / other Cost savings Price -35 Transformational initiatives -15 Tariffs Q4 2025 -694 -8.2% margin -841 -11.3% margin SEKm -147 (-21%) Note: Numbers are rounded to nearest 5 or 0. Currency +130 +130 +60 -35 -150-170 +180
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YTD EBIT bridge (ex. IAC) 2024 Volume / mix / other Cost savings Price -115 Transformational initiatives -15 Tariffs 2025 3,195 6.6% margin 2,901 6.2% margin SEKm -295 (-9%) Note: Numbers are rounded to nearest 5 or 0. Currency +130 -215 -315 -375-20 +745
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Successfully delivered SEK ~2bn in savings 2022 & 2023 programs Variable & fixed costs, production structure, reduction of 1,300 positions Realized savings: SEK 1,200m Announced savings: 2024 program Fixed costs, >400 positions SEK 500m Announced savings: 2023: 2024: SEK 380m SEK 735m Realized savings (All programs) 2025: SEK 745m Savings of SEK ~2 bn realized
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Cost-out ambition of 4 BSEK to be fully realized in 2030 Focused efficiency and cost-out program aiming at sustainable cost reductions and improved operational efficiency 2025 Sourcing Design-to -value Manufacturing Logistics Org. efficiency Total near-term Sourcing Design-to- value Manufacturing Logistics Org. efficiency 2030Starting point 20% complexity reduction as a key enabler Excluding non-recurring costs of SEK 1.5 bn ~60% of cost-out Near to Mid term Fully realized in 2030 Total near/mid- term 2030 Illustrative SEKm ~800 Expected savings 2026:
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• Solid financial position • Inventory build-up ahead of the gardening season • Lower borrowings Consolidated balance sheet SEKm Dec 31, 2025 Dec 31, 2024 Non-current assets 28 869 31 942 Inventories 13 847 13 828 Trade receivables 4 990 5 552 Other current assets 2 680 3 511 Cash and cash equivalents 1 707 1 970 Total assets 52 094 56 803 Total equity 23 540 24 622 Borrowings 10 916 12 519 Lease liabilities 1 815 2 003 Provisions for pensions 1 905 2 056 Other provisions 1 379 1 902 Trade payables 5 786 5 896 Other liabilities 6 753 7 805 Total equity and liabilities 52 094 56 803
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Net debt / EBITDA (R12) Note: average net debt / rolling 12 months EBITDA, excl. items affecting comparability
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Direct operating cash flow 3 267
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Launch 50 new circular innovations Empower 5 million people to make sustainable choices Reduce absolute CO2 emissions by 35% CIRCULAR PEOPLECARBON 56% 49 5.6m Performance Q 4 2025: Performance Q 4 2025: Performance Q 4 2025: Delivered on 2025 sustainability targets
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Dividend proposal Board proposal for 2025 – SEK 1.25 (1.00) • Proposal of increasing dividend by 25% • Payout: 40% of EPS • Dividend policy >40% • Balanced view of current market conditions, financial position and focus on reducing net debt
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18 Summary Organic sales growth for the full year despite soft consumer sentiment • Full-year organic sales growth of 1%, and declining EBIT related to tariffs, FX and price • Several successful product launches in 2025 • Concluded savings programs from 2022-2024 with run-rate savings of SEK ~2bn • Solid financial position and reduced net debt • Proposal of increasing dividend to SEK 1.25 (1.00) Executing on the 2030 Strategy: transforming to profitable growth • New cost-efficiency measures • Improving performance management • Strong product pipeline and new innovations for 2026
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Solid product pipeline for 2026 Husqvarna Forest & Garden GARDENA GARDENA smart SILENO sense with scalable AI vision technology New model and camera accessory for Pro Robotics Seven new Husqvarna Automower with scalable AI vision technology Wide range of new chainsaws with increased battery capacity Battery-driven Hosebox and Watertank GARDENA AquaPrecise Husqvarna Construction The first Husqvarna Autogrinder delivered Expanding the PACE battery platform Strengthened diamond tools offering
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Q&A
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