Published by Global Banking & Finance Review®
Posted on October 21, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleHusqvarna's Q3 earnings fell short due to weak demand and tariffs, causing a 10% drop in shares. The company is adjusting its supply chain to mitigate tariff impacts.
By Jesus Calero
(Reuters) -Swedish garden equipment maker Husqvarna reported third-quarter earnings that missed expectations on Tuesday, as uneven demand and tariffs weighed on sales, sending its shares down 10% in early trading.
Husqvarna's earnings before interest and tax (EBIT) rose to 141 million Swedish crowns ($14.98 million) in the quarter, up from 52 million a year earlier.
Chief executive Glen Instone told Reuters the company's cost cuts supported the result despite subdued consumer sentiment.
Sales in the quarter fell 5% to 9.2 billion crowns.
The third quarter follows Husqvarna's peak sales season and provides an early view of how demand trends are holding up after the spring and early summer sell-in.
Jefferies analysts said it was mixed across products, with strong growth in its professional business, including robotic mowers, while residential products faced subdued demand, particularly in North America.
COMPANY REWORKS ITS SUPPLY CHAIN
The company had warned of weaker sales and operating losses in the previous quarters due to soft consumer demand, retailer destocking and a tougher product mix.
Husvarna, which relies on imported products for about two-thirds of its U.S. sales, has been reworking its supply chain to limit tariffs exposure, shifting some production from China to Europe and rerouting shipments to avoid potential cost spikes.
The company faced a tariff impact of about 165 million crowns in the quarter and expects a 100 million crowns hit in the fourth quarter. It plans to continue raising prices to offset tariffs.
As part of its cost cuts, Husqvarna will close its Brastad factory in Sweden, generating about 100 million crowns in annual savings by 2027.
"We need to continue reviewing our cost position and ensuring we're competitive in the marketplace," Instone added.
Husqvarna Shares drop 10% at 0812 GMT, among worst performers in pan-European 600 index and on track for a worst day since July 2024.
($1 = 9.4155 Swedish crowns)
(Reporting by Jesus Calero; Editing by Matt Scuffham)
EBIT stands for Earnings Before Interest and Taxes. It measures a company's profitability from operations, excluding the effects of capital structure and tax rates.
Consumer sentiment refers to the overall attitude of consumers towards the economy and their personal financial situation, influencing their purchasing decisions.
A supply chain encompasses the entire process of producing and delivering a product, from raw materials to the final consumer.
Corporate profit is the financial gain a company makes after all expenses, taxes, and costs have been deducted from total revenue.
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