Is Factory Closure and Outsourcing Strategy Altering the Investment Case for Husqvarna (OM:HUSQ B)?

• Husqvarna recently reported third quarter 2025 earnings, highlighting SEK 9,204 million in sales and a net loss of SEK 10 million, while also announcing plans to decommission its Brastad factory by mid-2027 to outsource production and achieve future cost savings.
• Alongside its push for asset-light operations, Husqvarna is advancing AI-driven robotic lawnmower innovation and aims for annual cost savings of about SEK 100 million after closing the Brastad facility.
• We'll explore how the factory closure and shift to outsourced production could impact Husqvarna's drive for greater capital efficiency and profitability.

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Husqvarna Investment Narrative Recap

To own shares in Husqvarna today, you need to believe in the company’s ability to drive capital efficiency and profitability by transitioning toward asset-light operations and ongoing innovation in robotics, despite a challenging market backdrop. The recent Brastad factory closure announcement does not appear to materially shift the spotlight away from the critical catalyst of gaining share in high-margin, AI-driven lawn care, nor does it diminish the biggest risk: intensifying competition from low-cost robotics players putting sustained pressure on margins.

Among the latest developments, Husqvarna’s launch of seven new robotic lawnmowers with advanced AI vision technology aligns directly with the vital growth catalyst for the business, increasing market share within the fast-evolving smart, electric outdoor equipment segment, which may help offset risks linked to price pressure and market share erosion in core categories.

On the other hand, it’s important for investors to be aware that increasing competition from Asian entrants remains a challenge, especially as...

Read the full narrative on Husqvarna (it's free!)

Husqvarna's narrative projects SEK 52.5 billion revenue and SEK 3.6 billion earnings by 2028. This requires 2.9% yearly revenue growth and a SEK 2.3 billion earnings increase from SEK 1.3 billion today.

Uncover how Husqvarna's forecasts yield a SEK58.25 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Retail investors in the Simply Wall St Community suggest fair values for Husqvarna ranging from SEK45.71 to SEK67.81 across three estimates. With many participants focused on the shift to advanced, AI-powered robotic products, opinions diverge on how rapidly such innovation can counter the ongoing challenges of margin pressure and market share in entry-level categories.

Explore 3 other fair value estimates on Husqvarna - why the stock might be worth as much as 45% more than the current price!

Build Your Own Husqvarna Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Husqvarna research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Husqvarna research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Husqvarna's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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