Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand

Husqvarna AB

Wed 06:11

Overview
Swedish outdoor equipment maker's Q3 net sales fell 2%, slightly missing analysts' expectations
Operating loss was deeper than analysts' estimates
Company cites weak European demand, cost increases, and inventory reductions as weighing on results

Outlook
Company maintains target of SEK 3 bln in gross cost savings by end-2028
Husqvarna expects near-term cost headwinds to persist despite mitigation measures
Company expects to provide update on Powered Garden BPU review in early 2027

Result Drivers
EUROPEAN WEAKNESS - Co said widespread drought and weak consumer demand in Europe, especially Germany and France, drove declines in Forest & Garden sales
LOWER VOLUMES AND COSTS - Co attributed adjusted operating loss to lower volumes, unfavorable product mix, inventory reductions and higher raw material and logistics costs
COST SAVINGS INITIATIVES - Co said cost savings program delivered SEK 305 mln in Q3, mainly from sourcing and personnel reductions, but has not fully offset market headwinds

Company press release: ID:nWkr5GqTwP

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Miss*
SEK 9.01 bln
SEK 9.03 bln (4 Analysts)
Q3 Adjusted Loss Per Share
 
SEK 0.58
 
Q3 Loss Per Share
 
SEK 0.70
 
Q3 EBIT
Miss
-SEK 334 mln
-SEK 128.23 mln (3 Analysts)
Q3 Adjusted EBIT
 
-SEK 246 mln
 
Q3 EBIT Margin
 
-3.70%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the appliances, tools & housewares peer group is "buy"
Wall Street's median 12-month price target for Husqvarna AB is SEK38.00, about 8.4% above its October 20 closing price of SEK35.05
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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Oct 20 - Sweden's Profoto Q3 earnings improve on lower costs and refund of US tariffs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)