Group 1 - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for overseas listing applications, specifically for Zhongjian Technology, which is required to clarify the share pledge situation of its controlling shareholder before and after the listing [1] - Zhongjian Technology has submitted its application to the Hong Kong Stock Exchange on November 25, 2025, with Ping An Securities (Hong Kong) and Guotai Junan Securities (Hong Kong) as joint sponsors [1] - The CSRC has requested Zhongjian Technology to provide legal opinions regarding the potential changes in control due to share pledges and to clarify the actual controller's situation according to regulatory guidelines [1] Group 2 - Zhongjian Technology has established itself as a significant player in the outdoor power equipment industry in China, ranking among the top ten manufacturers based on global revenue projections for 2024 [2] - The company has successfully developed an intelligent lawn mowing robot, UNICUT H1, which features autonomous obstacle avoidance and efficient mowing capabilities, marking its entry into the smart robotics sector [2] - Zhongjian Technology is expanding its business focus to advanced intelligent robotics, with the launch of the Lingrui P1 robot, designed for various applications in high-risk environments, indicating a shift beyond traditional outdoor power equipment [2]

Financial Targets & Growth Strategy - Husqvarna Group aims for average annual organic sales growth of 3-5% over a business cycle[51, 52, 82] - The company targets an operating margin exceeding 10% over a business cycle, excluding items affecting comparability[53, 54, 84, 85] - Husqvarna Group targets a return on capital employed (ROCE) of 15% over a business cycle, excluding items affecting comparability[55, 56, 86, 87] - The company plans transformative cost-out measures to achieve over 4 billion SEK in savings by 2030[58, 93] Business Performance & Portfolio Management - Husqvarna Group reported net sales of 47.6 billion SEK for Q3 2025 R12, with an operating margin of 6.4%[32] - Aftermarket sales reached approximately 9 billion SEK in Q3 2025 R12, with an ambition to exceed 12 billion SEK in sales by 2030[62] - Approximately 80% of Husqvarna Group's sales come from market positions ranked 1 or 2[33] - Residential sales account for approximately 60% and professional sales for approximately 40% of the company's sales as of Q3 2025 R12[39] Sustainability - Husqvarna Group aims for a 60% reduction in CO₂ emissions by 2030, calculated against a 2015 baseline[76] - The company targets 25% of net sales from circular offerings by 2030[77]

Core Insights - Husqvarna Group is hosting its Capital Markets Day to outline strategic priorities and innovations aimed at long-term growth until 2030 [1] - CEO Glen Instone emphasizes the commitment to profitable growth through strategic portfolio management and operational excellence [2] Financial Targets - The company reiterates its dividend policy of 40% of net income [3] - New long-term financial targets include an average annual organic sales growth of 3-5% over a business cycle, an operating margin of over 10%, and a Return on Capital Employed (ROCE) of 15% [9] Sustainability Goals - Husqvarna Group aims to reduce CO2 emissions by 60% from the 2015 baseline by 2030 and plans for circular offerings to account for 25% of net sales [9] Cost-Reduction Initiatives - A transformational cost-out program is being implemented from 2026 to 2030, expected to yield annual run-rate savings of SEK 4 billion by the end of the period [4][5] - The program will incur SEK 1.5 billion in non-recurring costs, with SEK 1 billion expected to impact cash flows [5] Operational Efficiency - The cost-out program will focus on optimizing sourcing, geographical manufacturing footprint, and transitioning to a more asset-light business model [4] - The phasing of savings and costs will be communicated as the main activities are implemented [6]

Core Insights - The third quarter of 2025 marks the first quarter under the new CEO, Glen Instone, who emphasizes a focus on innovation and competitiveness through the upcoming 2030 strategy [3][10]. Financial Performance - Organic sales growth was flat, with net sales decreasing by 5% to SEK 9,204 million, impacted by a -5% change in exchange rates [4][6]. - Operating income, excluding items affecting comparability, increased to SEK 140 million, with an operating margin of 1.5%, up from 0.5% in the previous year [5][6]. - Earnings per share after dilution improved to SEK -0.02 from -0.27, indicating a reduction in losses [6]. - Cash flow from operations and investments was SEK 2,331 million, down from 2,892 million [6]. Segment Performance - The professional segment showed strong growth, particularly in robotic mowers and handheld products, while the residential segment faced subdued demand, especially in North America [4]. - Organic sales grew by 1% in the Husqvarna Forest & Garden Division and by 3% in the Husqvarna Construction Division, but decreased by 7% in the Gardena Division [4]. Cost Management - The company is implementing cost-saving measures, including the closure of a facility in Brastad, Sweden, to transition towards a more asset-light business model [8]. - Net debt decreased to SEK 9.9 billion from 12.8 billion, with an improved net debt/EBITDA ratio of 2.2 [7]. Innovation and Future Outlook - The company plans to launch several innovative products in 2026, including AI vision-based robotic mowers, as part of its long-term sustainability agenda [9][10]. - A Capital Markets Day is scheduled for December 10, 2025, to present the new strategic roadmap [10].

Financial Data and Key Metrics Changes - The company reported total consolidated net sales of $1,130 million, down 2.2% year over year, with half of this decline attributed to prior year strategic divestitures of noncore assets [7][15][19] - Adjusted earnings per share for the quarter were $1.24, exceeding internal expectations and up from the same period last year [7][15] - Reported earnings per share included a non-cash impairment charge of $0.62 per diluted share, resulting in a reported EPS of $0.54 [15][19] - Free cash flow for the third quarter was $292 million, reflecting a year-over-year increase largely due to favorable changes in working capital [20][21] Business Line Data and Key Metrics Changes - Professional segment net sales were $931 million, up approximately 6% year over year, driven by higher shipments of underground construction and golf and grounds products [16][19] - Professional segment earnings for the third quarter were $199 million, up 20% year over year, resulting in an earnings margin of 21.3%, an increase from 18.8% in the prior year [16][19] - Residential segment net sales were $193 million, down 28% year over year, primarily due to lower shipments as homeowners deferred big-ticket purchases [17][19] - Residential segment earnings for the quarter were $4 million, or 1.9% of sales, compared to $33 million, or 12.2% of sales last year [17][19] Market Data and Key Metrics Changes - The company noted that channel inventory is clearing meaningfully, particularly in the residential segment, setting up a cleaner foundation for the 2026 selling season [8][17] - The professional segment continues to capture market share in areas experiencing structural growth, particularly in golf and infrastructure [10][12] Company Strategy and Development Direction - The company is focused on leveraging technology investments and operational excellence to drive significant value for customers and shareholders [5][9] - The AMP productivity program has delivered $75 million in annualized cost savings, with a target of at least $100 million by 2027 [9][27] - The company is strategically investing in value-generating technology and innovation while optimizing global supply chain operations [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory despite persistent headwinds in the residential segment, emphasizing the importance of operational improvements and cost control [5][9] - The company anticipates continued pressure from homeowner demand and channel caution affecting third-quarter results, but expects strong demand in the professional segment [22][24] - Full-year guidance expects total company net sales to be at the low end of the range of flat to down 3%, with professional segment revenue expected to be up slightly year over year [23][24] Other Important Information - The company has maintained its market share despite significant fluctuations in the market over the past few years [47] - The company is focused on returning value to shareholders while maintaining balance sheet flexibility for continued investment in technology innovation and new product development [22][30] Q&A Session Summary Question: How is the professional landscape channel performing amid consumer challenges? - Management noted that the professional landscape contractor business grew in the third quarter, driven by strong demand from contractors despite muted homeowner demand [34][35] Question: Is the strong margin in the professional segment sustainable? - Management confirmed that the strong margin performance was supported by a favorable mix and the AMP program, indicating potential for continued margin improvement [36][38] Question: Will interest rate cuts improve the residential outlook? - Management speculated that interest rate cuts could positively influence consumer confidence, potentially leading to increased big-ticket purchases [40] Question: What is the outlook for residential margins? - Management expects residential margins to be lower year over year, with a typical margin range of 8% to 10% anticipated in the future [51][52] Question: What are the expectations for year-end backlog and professional growth next year? - Management indicated that year-end backlog is expected to be substantially reduced, with continued good prospects for professional growth [54][56] Question: How is the AMP program progressing? - Management reported strong progress with the AMP initiative, tracking ahead of the $75 million savings goal, with discussions of a potential AMP 2.0 in the future [67] Question: What is the impact of tariffs on margins? - Management estimated that tariffs had a significant impact on costs, but they are implementing pricing and productivity measures to maintain margins [69][75] Question: What is the current status of inventory levels? - Management indicated that inventory levels are being managed prudently, with a focus on aligning dealer inventories for the upcoming selling season [104][113]

Company Leadership Change - Glen Instone has been appointed as the new CEO of Husqvarna Group, effective August 11, 2025, succeeding Pavel Hajman [1] - The Board of Directors expressed confidence in Instone's leadership skills and deep knowledge of the business, which will be crucial for the company's future strategy [1] - Pavel Hajman has served as Group CEO since December 2022 and has been recognized for his dedication and leadership over the past decade [2] Glen Instone's Background - Glen Instone, aged 48, is a Chartered Management Accountant and holds a B.A. (Hons) in Accounting & Finance [4] - He joined Husqvarna in 2002 and has been part of Group Management since 2018, previously serving as Group CFO and in various roles within the Forest and Garden Division [4] Company Overview - Husqvarna Group is a global leader in innovative solutions for managing forests, parks, and gardens, as well as construction equipment and diamond tools [6] - The company reported net sales of SEK 48.4 billion in 2024 and employs approximately 12,300 people across 40 countries [6]

Core Points - The Annual General Meeting (AGM) of Husqvarna AB was held on April 29, 2025, where shareholders could attend physically or via advance voting [1] - The profit and loss statements and balance sheets were adopted, with a dividend of SEK 1.00 per share approved, to be paid in two installments [1] - The Board of Directors' proposal for the composition of the Board was approved, with nine members elected, including new members Claes Boustedt, Marlies Gebetsberger, and Magnus Jarlegren [2] - The total remuneration for the Board was set at SEK 8,490,000, with specific amounts allocated to the Chair and other members [3] - KPMG was elected as the auditor for the period until the next AGM, with fees based on approved invoices [4] - The AGM approved the renewal of remuneration guidelines for Group Management and the Remuneration Report [5] - A performance-based long-term incentive program for 2025 was approved, along with authorization for equity swap arrangements to hedge obligations [6] - The Board was authorized to issue up to approximately 57.6 million new B-shares for acquisitions, with pricing based on market value [7] Company Overview - Husqvarna Group is a global leader in innovative solutions for managing forests, parks, and gardens, as well as cutting equipment and diamond tools for construction and stone industries [9] - The company reported net sales of SEK 48.4 billion in 2024 and employs approximately 12,300 people in 40 countries [9]