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Husqvarna Group Uses Capital Markets Day to Map 2030 Strategy for Profitable Growth

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Husqvarna Group Uses Capital Markets Day to Map 2030 Strategy for Profitable Growth

SHERIDAN, WYOMING - December 10, 2025 - Husqvarna Group is sharpening its long-term strategy to deliver profitable growth, unveiling new 2030 financial and sustainability targets and a transformational cost-out program as it positions its global outdoor equipment and robotics portfolio for higher margins and capital efficiency.

New 2030 Strategy Anchored in Portfolio Focus and Operational Excellence

At its Capital Markets Day in Stockholm, Husqvarna Group's leadership team briefed institutional investors, analysts and financial media on the next strategy period to 2030. The company will focus on strategic portfolio management, operational excellence and full leverage of its aftermarket offering across its core manufacturing and industry segments.

"We are committed to transforming to profitable growth through focused actions built on strategic portfolio management and operational excellence, while fully leveraging our aftermarket offering as our key differentiator. In the coming years, every part of the company will play a vital role in strengthening our competitiveness to support investments in our strong brands and future innovations," says Glen Instone, CEO of Husqvarna Group.

Alongside strategic updates from divisional presidents, Husqvarna showcased its latest innovations in robotics, smart watering and professional solutions, emphasizing a product mix aligned with long-term structural growth in automation and connected outdoor systems.

Clear Financial Roadmap: Growth, Margins and Capital Returns

Husqvarna Group introduced a refreshed set of long-term financial targets designed to balance organic growth with profitability and disciplined capital allocation. Over a business cycle, the Group is targeting:

  • Average annual organic sales growth of 3-5%
  • Operating margin of more than 10% (excluding items affecting comparability)
  • Return on Capital Employed (ROCE) of 15%

The company also reiterated its dividend policy of distributing 40% of net income, underlining its commitment to shareholder returns while funding innovation and restructuring measures. For investors, the new metrics frame Husqvarna's ambition to shift from volume-driven expansion to higher-quality growth built on pricing power, mix and lifecycle value from its installed base.

Sustainability as a Commercial and Operational Lever

Sustainability targets for 2030 are tightly integrated into the new strategy, reflecting both regulatory pressure and customer expectations in Europe and other core markets. Husqvarna aims to:

  • Cut CO₂ emissions by 60% versus a 2015 baseline
  • Grow circular offerings to 25% of net sales

These goals support the Group's push into circular business models, remanufactured solutions and lower-carbon products, particularly in segments such as battery-powered robotics and professional equipment. For B2B customers - from landscaping firms to municipalities - the targets signal a roadmap that aligns fleet investments with decarbonization and circularity mandates.

Transformational Cost-Out Program to Fund Growth and Margin Expansion

To underpin its strategy and financial ambitions, Husqvarna Group is launching a multi-year cost-out program running from 2026 to 2030. The initiative will cut structural costs, optimize the sourcing and geographic manufacturing footprint, and transition the company toward a more asset-light business model.

Key levers include:

  • Supply chain and sourcing optimization across global operations
  • Product platform simplification to reduce complexity and material cost
  • Organizational efficiency measures to streamline overhead and decision-making

By the end of 2030, the program is expected to generate annual run-rate savings of SEK 4 billion. This will be achieved with around SEK 1.5 billion in non-recurring costs impacting reported EBIT over the period, of which roughly SEK 0.5 billion are non-cash items and SEK 1 billion are expected to affect cash flows. Detailed phasing of savings and charges will be communicated as major workstreams are implemented.

Implications for Investors and Professional Customers

For capital markets, the new targets and cost program signal a decisive shift toward higher structural profitability, more resilient cash flows and a more disciplined capital base in Husqvarna's core business lines. The company's emphasis on robotics, smart watering and professional solutions suggests continued prioritization of higher-margin, technology-rich segments with recurring service and aftermarket revenues.

Professional users and channel partners can expect a broader portfolio of intelligent, connected solutions backed by a more efficient industrial footprint. As Husqvarna moves to an asset-lighter and more flexible manufacturing and sourcing model, it will be better positioned to manage seasonal swings, regional demand shifts and input-cost volatility, while continuing to invest in product innovation and service quality.

For full presentations and the event replay, investors can access the Capital Markets Day materials via Husqvarna Group's investor relations section on the company's corporate website.

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