Why is Husqvarna stock plunging today?

Husqvarna AB Class B fell 8.2% to trade at SEK 32.17 after the company reported a deeply disappointing set of Q3 2026 results before the market opened, with operating losses far exceeding what analysts had anticipated.

The group posted a third-quarter operating loss of SEK 334 million, reversing a profit in the prior-year quarter, as sales fell 2% to SEK 9,012 million with an organic decline of 5%; operating margin collapsed to -3.7% from 1.5%, and diluted earnings per share fell to SEK -0.70 from SEK -0.02. The gross margin came in at 24.9%, well below the 27% that analysts had expected.

CEO Glen Instone cited lower sales volumes, an unfavorable product mix, inventory reductions, and higher raw material and logistics costs as the key factors weighing on the quarter’s result.

Net sales weakness was primarily driven by continued softness in Europe, and the company signaled that near-term headwinds are expected to remain.

Adding to the pressure, Husqvarna also announced the closure of its Brastad factory today, a move expected to generate savings of approximately SEK 100 million.

The results prompted swift analyst reactions, with Pareto and DNB Carnegie downgrading the stock to hold, and Handelsbanken cutting its price target.

The Stockholm Stock Exchange showed only minor moves on Wednesday morning overall, with Husqvarna standing out as one of the session’s sharpest decliners after its loss-making quarter.

Both the broad OMXSPI index and the large-cap OMXS30 were down just 0.1% shortly after the open, underscoring that the selloff in Husqvarna was driven almost entirely by company-specific factors rather than any macro or market-wide deterioration.

The stock touched a new 52-week low of SEK 31.20 intraday, well below its 52-week high of SEK 48.75.

The combination of a headline operating loss, a gross margin that fell well short of forecasts, and a cautious forward outlook proved too much for investors to absorb.

The report arrived after DNB Carnegie had already cut its price target from SEK 41 to SEK 36 on October 9, citing weaker demand, unfavorable weather, and higher costs — meaning sentiment was already fragile heading into today’s release, amplifying the market’s reaction to what turned out to be results even worse than the most pessimistic pre-report estimates.