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]