Slides
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Q3 2026 earnings call Glen Instone, CEO Patrik Johnson, CFO
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Glen Instone CEO
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Q3 summary Consistent strategy execution through multiple actions • Successful product launches, broadening presence across sales channels • Cost savings program on track • Initiatives to become more asset-light • Progress in footprint optimization projects Challenging market environment • Challenging European market conditions, but continued growth in North America • Lower volumes, inventory reduction and cost headwinds impacting earnings • Solid cash flow and net debt reduction 3 -5% Organic growth -246 SEKm Operating income ex IAC -2.7% Operating margin ex IAC
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Strategic highlights in the quarter Strengthening the portfolio • Discontinuation of stone diamond tools business • Strategic review of Powered Garden • Investing for growth in Professional Robotics Growing aftermarket • 15 consecutive quarters of aftermarket growth in Husqvarna Construction Division • Strengthened customer support, enhanced service capabilities, and expanded offerings 4 Footprint and asset-light activities • Optimizing Gardena’s EU manufacturing footprint • Phase-out of Brastad (SE) component factory • Outsourcing selected battery-electric handheld products to Asia
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Focused marketing activities to grow Pro Robotics golf ecosystem 5
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Delivering on the transformative cost-out program Sourcing Manufacturing Logistics Organizational efficiency >SEK 4bn savings planned to 2030 o/w SEK 3bn end of 2028 Design-to-value Achieved 23% of planned savings Illustrative split total cost out of >4 SEKbn Achieved vs planned 6 YTD savings end of Q3 2026 (SEKm) 935 Achieved in Q3 2026 (SEKm) 305 Main cost-out drivers in Q3 2026 • Best cost sourcing • Personnel reductions
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Sales Net sales Organic sales growth Q3 Net sales (SEKm) 9,012 (Q3 2025: 9,204) Organic: -5% Currency: +3% Total: -2% • Decline in Forest & Garden Division • Growth in Gardena Division • Weak market conditions in Europe • Growth North America SEKm 7 LTM LTM 0 16 000 32 000 48 000 64 000 0 4 000 8 000 12 000 16 000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 -15% -10% -5% 0% 5% 10% -15% -10% -5% 0% 5% 10% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026
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Earnings Operating income and margin, excluding IAC SEKm 8 Q3 Operating income, ex IAC -246 (SEKm) (Q3 2025: 140) Operating margin, ex IAC -2.7% (Q3 2025: 1.5%) • Earnings impacted by lower sales volumes, inventory reduction, unfavorable mix, higher raw material and logistics cost • LTM Operating margin, ex IAC 5.8% (6.4) -15% -10% -5% 0% 5% 10% 15% 20% 25% -1 500 -1 000 -500 0 500 1 000 1 500 2 000 2 500 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 Operating income Operating margin, LTM Operating margin
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Husqvarna Forest & Garden Division Market and topline • Unfavorable weather conditions and a weak consumer sentiment in Europe • Lower sales for the Wheeled and Residential Robotics BPUs in Europe • Growth in North America driven by Wheeled BPU Earnings • Impact from lower volumes, inventory reduction and unfavorable mix • Cost headwinds from raw material and logistics cost 9 Note: Operating income excluding items affecting comparability Operating income and margin, ex IACNet sales LTM LTMSEKm SEKm SEKm Q3 2026 Q3 2025 Chg. % Jan-Sep 2026 Jan-Sep 2025 Chg. % LTM Full year 2025 Net sales 5,133 5,594 -8 21,939 23,063 -5 26,665 27,788 Organic growth, % -10 1 -3 4 -3 3 Operating income, ex IAC -181 222 2,318 2,511 -8 1,963 2,156 Operating margin, ex IAC, % -3.5 4.0 10.6 10.9 7.4 7.8 0 8 000 16 000 24 000 32 000 40 000 0 2 000 4 000 6 000 8 000 10 000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% -400 -200 0 200 400 600 800 1 000 1 200 1 400 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026
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Gardena Division Market and topline • Strong growth in Watering business in Europe and North America • Market share gains in key markets • Sales decline in Powered Garden BPU Earnings • Higher volumes and a positive product mix • Dilution from Powered Garden BPU • FX had a positive impact of SEK 27m yoy 10 Note: Operating income excluding items affecting comparability Operating income and margin, ex IACNet sales LTM LTM SEKm SEKm SEKm Q3 2026 Q3 2025 Chg. % Jan-Sep 2026 Jan-Sep 2025 Chg. % LTM Full year 2025 Net sales 2,038 1,799 13 9,853 10,512 -6 10,834 11,493 Organic growth, % 8 -7 -4 -2 -4 -3 Operating income, ex IAC -88 -161 45 1,038 1,106 -6 662 730 Operating margin, ex IAC, % -4.3 -9.0 10.5 10.5 6.1 6.4 0 4 000 8 000 12 000 16 000 20 000 0 1 000 2 000 3 000 4 000 5 000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 -4% -2% 0% 2% 4% 6% 8% 10% -400 -200 0 200 400 600 800 1 000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026
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Husqvarna Construction Division Market and topline • Growth for power cutters in Sawing and Drilling BPU and Compaction, Placement & Demolition BPU • Solid aftermarket growth • Growth in North America while declining in Europe Earnings • Lower production volumes and increased cost of raw materials • Dilution from stone diamond tool business • FX had a negative impact of SEK 22m yoy 11 Note: Operating income excluding items affecting comparability Operating income and margin, ex IACNet sales LTM LTM SEKm SEKm SEKm Q3 2026 Q3 2025 Chg. % Jan-Sep 2026 Jan-Sep 2025 Chg. % LTM Full year 2025 Net sales 1,782 1,773 0 5,422 5,501 -1 7,098 7,177 Organic growth, % 0 3 2 -4 2 -2 Operating income, ex IAC 133 205 -35 512 576 -11 577 641 Operating margin, ex IAC, % 7.5 11.5 9.4 10.5 8.1 8.9 0 2 000 4 000 6 000 8 000 10 000 0 500 1 000 1 500 2 000 2 500 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 0% 2% 4% 6% 8% 10% 0 60 120 180 240 300 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026
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Patrik Johnson CFO
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Q3 EBIT bridge (ex. IAC) Q3 2025 Volume / mix Cost savings Price -55 Transformational initiatives -15 Tariffs Q3 2026 140 1.5% margin -246 -2.7% margin SEKm Note: Numbers are rounded to nearest 5 or 0. Currency +125 +10 +10 -470 +305 13 SEK -385m Cost inflation & other -315
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YTD EBIT bridge (ex. IAC) YTD 2025 -135 -15 YTD 2026 3,742 9.5% margin 3,421 9.2% margin SEKm Note: Numbers are rounded to nearest 5 or 0. +215 -75 +155 -785 +935 14 SEK -320m (-9%) Volume / mix Cost savings Price Transformational initiatives TariffsCurrencyCost inflation & other -630
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Cash flow 15 LTMSEKm Free operating cash flow -6 000 -3 000 0 3 000 6 000 9 000 -3 000 -1 500 0 1 500 3 000 4 500 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 Free operating cash flow Free operating cash flow, LTM SEKm Q3 2026 Q3 2025 Jan-Sep 2026 Jan-Sep 2025 Full year 2025 EBITDA 426 882 5,278 5,963 5,866 Non-cash and repayment of lease liabilities -183 -209 24 -374 -699 EBITDA excl. non-cash and repayment of lease liabilities 244 673 5,302 5,589 5,167 Capex -460 -491 -1,333 -1,627 -2,258 NWC 2,638 2,240 922 781 -169 FOCF 2,422 2,423 4,891 4,743 2,741
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Return on capital employed • Average capital employed decreased to SEK 40,369m (41,564) • ROCE excl. IAC of 6.4% (7.3) • Lower operating income 16 Return on capital employed SEKm 0% 2% 4% 6% 8% 10% 12% 0 10 000 20 000 30 000 40 000 50 000 60 000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 Capital employed, LTM Return on capital employed excl. IAC
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Debt overview 17 Net debt/EBITDA (excl. IAC) 2.1 Net debt (SEKb) 9.4 • S&P rating: BBB- Stable outlook Net debt Maturity profile SEKm Ratio SEKm 0,0 0,5 1,0 1,5 2,0 2,5 3,0 0 5 000 10 000 15 000 20 000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026 Financial net debt Net pension liability Lease liability Net debt/EBITDA excl. IAC 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 2026 2027 2028 2029 2030- Millions Borrowings Unutilized RCF
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Q3 summary Challenging market environment • Challenging European market conditions and continued growth in North America • Lower volumes, inventory reduction and cost headwinds impacting earnings • Solid cash flow and net debt reduction Consistent strategy execution through multiple actions • Successful product launches, broadening presence across sales channels • Cost savings program on track • Initiatives to become more asset-light • Progress in footprint optimization projects 18
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Q&A
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www.husqvarnagroup.com