Husqvarna AB Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Adela Dashin - Jeffrey - Analyst : Thank you. Just a couple of questions from me. The first one, I guess it's more related to the general market environment and we've heard of several other you could say maybe more prominent, not the new, but still relevant players, launching products and so on. Are you seeing more intensified competition, that you believe is also pulling down your your sales figure or do you merely view this as external headwinds causing the disruption at the moment?

Question: Adela Dashin - Jeffrey - Analyst : And then maybe to back that up, I mean you launched several new categories yourself this year, both on the professional side and the resi side in the robotic lawnmower segment. I think at the beginning of the year you were talking about growth in both those categories. Could you maybe explain what has turned the market more sour, in the resi segment in H2. And maybe also your view going into the fourth quarter, which is a seasonally smaller one.

Question: Adela Dashin - Jeffrey - Analyst : Perfect, that's good color. And then maybe lastly for me, just thinking of the cost savings programs that you've already implemented, roughly SEK1.7 billion, I'm getting cumulative and then an additional SEK100 million and I was just now in the quarter. Does this mean that basically going into Q4. It's evaporating a bit so we potentially could see at the capital markets they a more we found a savings plan being announced. What's your view on that?

Question: Adela Dashin - Jeffrey - Analyst : Just lastly, if I may, since you were so granular giving us the expectations on currency tariffs and cost savings going into the fourth quarter, what's your view on price?

Question: Adela Dashin - Jeffrey - Analyst : Perfect, thank you very much.

Question: Fredrik Ivarsson - ABG Sundal Collier Holding ASA - Analyst : Thank you for the questions. I have a few, but first, maybe a follow-up on the last one just to clarify. Did you say 5% cost reduction on resi robotics overall or just for the entry models?

Question: Fredrik Ivarsson - ABG Sundal Collier Holding ASA - Analyst : Yeah, exactly. That's what I meant. Thanks. And then a question on Gardena and Orbit specifically. It sounds like it is struggling a little bit at the moment. Do you have a view on the market share development for Orbit over the last years and maybe also if you could help us with that? With the margin development in orbit, I think you said it was accretive to margins in Gardena in 2024. So if you could help us with that.

Question: Fredrik Ivarsson - ABG Sundal Collier Holding ASA - Analyst : Perfect, thank you. And then on the cost savings, a bit more than half a billion and half in year-to-date, or sorry, half a billion, I guess it's year-to-date and then 1.7% over the last years. How are those divided between the three segments, any segment that that's been more favored by the cost savings. Or is it just equal.

Question: Fredrik Ivarsson - ABG Sundal Collier Holding ASA - Analyst : Okay, good. And then just one last quick one on the tariff impact SEK165 gross. How much of that have you been able to offset through price adjustments and other things?

Question: Fredrik Ivarsson - ABG Sundal Collier Holding ASA - Analyst : Perfect. That's very clear. Thanks so much for answering the questions.

Question: Bjorn Enarson - Danske Markets Equities - Analyst : Yeah, thank you. I was also into price and savings, and I mean looking at the next year, are you expecting to see market driven price cuts primarily in robotics and perhaps also handhelds or are you expecting to see a higher price looking into next year. And if you're not expecting any positive price development or you're planning to offset that through efficiency or savings or what's your view there? Thank you.

Question: Bjorn Enarson - Danske Markets Equities - Analyst : Thank you, and on Chinese competition, have you any view on how much volumes have come from China? Over the last years, how much that have increased in a little bit of a sense of a supply demand perspective. Do you see massive volumes or what's your view on that? Thank you.

Question: Bjorn Enarson - Danske Markets Equities - Analyst : Yes. Exactly primarily robotics, but I guess also handheld or basically where you see competition from China.

Question: Bjorn Enarson - Danske Markets Equities - Analyst : Thank you.

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : Thank you. This is Gustav Hageus with Seb. Glen, congrats on your new job. Well deserved. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 21, 2025 / 8:00AM, HUSQb.ST - Q3 2025 Husqvarna AB Earnings Call If I might stick with the robotics growing 12% year to date. From what we're hearing in the market by other participants, I guess the A view is that the market grew about 30% during the same period this year. Is that, --does that resonate roughly with your view of the market growth? Thank you.

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : Okay. And secondly, I just want to come back to that comment on the volume growth. You mentioned perhaps 20% volume growth while growing 12%, so minus 8% price mix. The Germans feel in the market as we take it though is that the mix is significantly positive in the quarter driven by, less sales of lower price boundary wire robots to the benefit of higher price. Boundary models So does that not impact you to the same extent the market, or don't you see a net combination of the mix and the price being positive in the year?

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : All right. And then on the new robot line that you're coming to the market with them, if we start with the Gardena [Selenaans], what's the list price for that? We're hearing retailers now are pushing Europe for entry. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 21, 2025 / 8:00AM, HUSQb.ST - Q3 2025 Husqvarna AB Earnings Call Enterprise for the boundary wire free of about EUR399 price point, is that are you going to be competitive in that? And that price point with the Guardiana Selenaans this year, you think.

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : Okay, but you're not willing to give us a list price for the Gardena. I think the list price for the for the predecessor was [SEK1,499] right?

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : And then a final one for me sticking to the new robotic line with the new AI vision in the new models, do you feel that you have the hardware to enable AI at the fullest, and do you feel that you've had time to train. The AI to be fully competitive in the market and also from a price competitive perspective, you feel that you, from what you bring with AI ambition based, it's price competitive.

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : Alright, thank you.

Question: Johann Elison - SP 1 - Analyst : Yeah, hi Glen and Terry. It's nowadays at SP 1. Just sorry for coming back very briefly on the robotic side again. Can you give an indication on your share of wire vis a wire free sale this season? And secondly, just on the robotics, you talk about these price cuts, but you also talk about the positive modern mix impact. Would you say that all your price categories are supporting your group margins for the year, and the other would they also be supporting sort of, the divisional margins in the Gardena and, Forest Spring Garden?

Question: Johann Elison - SP 1 - Analyst : Okay, excellent. And then just on the tariffs, obviously, we're seeing more impact of it now in the second half and your guide for the Q4. What about next year? I mean, the, you always miss the tariffs on the big volumes of your, sales into North America. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 21, 2025 / 8:00AM, HUSQb.ST - Q3 2025 Husqvarna AB Earnings Call Should we expect a significantly bigger tariff impact, next year versus what we're seeing now in the second half, for the first half, and, or are you being able to mitigate it so the net effect will would be significantly less than one could fear. Thank you.

Question: Johann Elison - SP 1 - Analyst : Okay, excellent. And then just on the inventory reductions, you talked about SEK700 million in this quarter currency adjusted. How much is related to the plant divestment in North America, where I understand some inventory was part of it as well.

Question: Johann Elison - SP 1 - Analyst : Okay, excellent. That's all my questions I had. Thank you very much.

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : Thank you, operator. Thanks for taking my follow-up. I'm more of a bigger one but, given that you're new to this position, Glen and maybe have a slightly different view. It'd be interesting to hear your thoughts. I think about Gardena and the industrial logic for keeping Gardena long-term as a part of his corner. I mean, historically. Is part of the rationale has been that you've been able to develop handheld tools and robotic mowing and being able to sell it at a lower price the year after to under the Gardena brand, but as that business seemingly is declining and very fast, so in Q3 here. Being the driver to the decline in Gardena, although a small part I guess, of the total sales. Does it make sense over time, you think, to keep this group together or does Gardena -- is Gardena a company that could potentially stand on its own leg if you had the op opportunity to get something material back from such a spinoff or trade?

Question: Gustav Hageus - Seb Enskilda (London) - Analyst : Okay, that's clear. Thanks.