Husqvarna (OTCPK:HSQV.Y) 2025 Capital Markets Day Transcript

Summary of Husqvarna Group's Capital Markets Day 2025 Company Overview - Company: Husqvarna Group (OTCPK:HSQV.Y) - Event: Capital Markets Day 2025 - Date: December 10, 2025 - Location: Stockholm Key Points Discussed Industry Context - Challenging Environment: The company operates in a challenging environment characterized by geopolitical tensions, supply chain disruptions, and changing competition dynamics, particularly from Chinese competitors in the robotics space [12][13][14] - Market Position: Husqvarna is a global leader in outdoor power equipment and light construction, with strong brand recognition for Husqvarna and Gardena [20][21] Financial Performance and Targets - Underperformance: The company has been underperforming against financial targets, with insufficient cost reductions and competitiveness [4][12] - New Financial Targets: - Aim for organic growth of 3%-5% over a business cycle [56] - Target operating margin of 10% in the near to mid-term, with a goal to consistently operate above 10% [39][57] - Return on Capital Employed (ROCE) target of 15% by 2030 [40][57] Strategic Initiatives - Cost-Out Program: Launch of a SEK 4 billion cost-out program aimed at improving margins and funding innovation and brand investments [35][40][61] - Focus on Aftermarket: Emphasis on developing a world-class aftermarket service to enhance customer engagement and generate recurring revenues, targeting growth from SEK 9 billion to over SEK 12 billion [43][51] - Product Portfolio Management: Clear segmentation of business units into profitable growth, profitability improvement, and turnaround categories [51][44] Innovation and Product Development - Investment in R&D: Commitment to maintain R&D investment at around 5% of sales, with a focus on innovation to sustain market leadership [58][59] - New Product Launches: Introduction of AI-enabled robotic mowers and other innovative products aimed at enhancing customer experience and operational efficiency [24][25] Market Dynamics - Shift to Professional Users: Strategy to increase the proportion of sales from professional users, which are seen as more stable and profitable [26] - Robotics Market Growth: Anticipated growth in the robotics segment, with a market growth potential of over 30% [47] Sustainability Efforts - CO2 Emission Reduction: Achieved a 55% reduction in CO2 emissions since 2015, with a new target of 60% reduction by 2030 [49] - Circular Economy Initiatives: Aim for 25% of sales to come from circular offerings by 2030 [49] Organizational Changes - New Management Team: Introduction of a new management team focused on cultural change and operational efficiency [6][4] - Focus on Execution: Emphasis on faster execution and agility within the organization to meet strategic goals [6][38] Conclusion - Path Forward: Husqvarna Group aims to transform into a profitable growth company through operational excellence, strong aftermarket services, and strategic capital allocation [51][35]