Published by Global Banking & Finance Review®
Posted on December 10, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleHusqvarna targets 3-5% organic sales growth and a 10%+ operating margin. A cost-cutting plan aims for 4 billion crowns in savings by 2030.
Dec 10 (Reuters) - Husqvarna targets average annual organic sales growth of 3% to 5% over a business cycle, the garden equipment maker said on Wednesday ahead of its investor day presentations.
The group also targets an operating margin above 10% and a return on capital employed of 15% through the cycle, timeline of which is not specified. It reiterated its policy of paying out 40% of net income as dividends.
Its earlier financial goals, announced in 2021, were for yearly organic sales growth of 5% and an operating margin of 13%.
Husqvarna said it would carry out a cost-cutting programme between 2026 and 2030 to enhance the efficiency of its operations.
The plan is expected to result in annual run-rate savings of 4 billion Swedish crowns ($427 million) by the end of 2030. During the process, Husqvarna's reported operating income will be impacted by non-recurring costs totalling 1.5 billion crowns, it said.
($1 = 9.3672 Swedish crowns)
(Reporting by Agnieszka Olenska and Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak)
Organic sales growth refers to the increase in sales generated by a company from its existing operations, excluding any revenue from acquisitions or mergers.
Operating margin is a financial metric that measures the proportion of revenue that remains after covering operating expenses, indicating the efficiency of a company in managing its costs.
Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is utilized.
A dividend policy is a company's approach to distributing profits back to its shareholders, typically in the form of cash payments or stock shares.
A cost-cutting program is a strategic initiative undertaken by a company to reduce its expenses and improve profitability, often through efficiency improvements or reductions in workforce.
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