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Investing.com -- Swedish manufacturer of outdoor power products, Husqvarna AB, on Tuesday reported weaker-than-expected third-quarter results as uneven demand and soft North American sales pulled revenue down 5% year over year to SEK 9.2 billion, about 3% below analyst forecasts.
Adjusted operating profit rose 165% from a year earlier to SEK 140 million, though the figure remained 28% below consensus estimates.
The margin improved to 1.5% from 0.5% in the same quarter of 2024, helped by a stronger product mix and cost-saving efforts. Tariff pressures and currency movements continued to weigh on earnings.
Sales trends differed across divisions. The Forest and Garden segment recorded revenue of SEK 5.6 billion, down 4% from a year earlier but up 1% organically.
The Gardena division fell 12% to SEK 1.8 billion, with organic sales down 7%. The Construction unit posted SEK 1.8 billion in revenue, a 3% decline year over year but a 3% organic gain.
Operating profit also varied by business line. Forest and Garden reported adjusted EBIT of SEK 222 million, up 54% from a year earlier, with a 4% margin.
Gardena posted a loss of SEK 161 million, a 4% decline, and a margin of negative 9%. Construction achieved adjusted EBIT of SEK 205 million, up 36%, with an 11.5% margin.
Husqvarna continued its cost-efficiency program during the quarter, including the closure of its Brastad, Sweden facility.
The move is part of a transition to an asset-light model, with projected annual savings of SEK 100 million starting in 2027.
Jefferies maintained a “hold” rating on the shares, which closed at SEK 51.46 before the report’s release, with a price target of SEK 55.
The valuation reflects an estimated 11× EV/EBIT multiple for 2026 and implies potential upside of about 7%.
The company noted that it remains focused on improving competitiveness and innovation amid continued uncertainty in North America related to trade policy, foreign exchange volatility, and weak consumer demand.
Husqvarna’s market capitalization stood at SEK 29.4 billion, or $3.1 billion, at the time of publication