Husqvarna’s Leadership Shift: Strategic Implications for the Forest and Garden Division

The recent leadership transitions at Husqvarna Group have sparked significant interest among investors and industry observers, particularly regarding their implications for the Forest and Garden Division. As Glen Instone assumed the role of CEO on August 11, 2025, and Omar Attar took over as interim President of the division, the company’s strategic direction and operational continuity have come under scrutiny. This analysis examines how these changes—rooted in succession planning and interim leadership—impact both day-to-day operations and long-term investor confidence.

Succession Planning and Operational Continuity

Husqvarna’s leadership reshuffle reflects a calculated approach to succession planning. Glen Instone’s transition from President of the Forest and Garden Division to CEO underscores the company’s emphasis on internal promotion, a strategy often associated with maintaining institutional knowledge and strategic coherence. According to a report by the Husqvarna Group, Instone’s deep familiarity with the division’s operations positions him to navigate macroeconomic headwinds, such as trade tariffs and currency fluctuations, which have already impacted North American performance [2].

Meanwhile, Omar Attar’s appointment as interim President—following his tenure as CFO—demonstrates the value of cross-functional experience in interim leadership. As noted by Korn Ferry, interim leaders often bridge gaps during transitions by leveraging existing relationships and operational insights, minimizing disruptions [1]. Attar’s dual role as CFO and interim President suggests a continuity of financial discipline, a critical factor for a division that reported a 6% organic growth in Q1 2025 despite North American challenges [4].

However, the reliance on interim leadership raises questions about long-term stability. While Attar’s appointment ensures short-term continuity, the absence of a permanent successor could introduce uncertainty. This aligns with broader industry trends, where prolonged interim roles risk eroding stakeholder confidence if not paired with clear timelines for permanent appointments [4].

Investor Confidence: Mixed Signals Amid Strategic Shifts

Investor reactions to Husqvarna’s leadership changes have been mixed, reflecting both optimism about strategic direction and concerns over financial metrics. During the Q2 2025 earnings call, the division reported a 5% organic sales growth, driven by a 15% surge in robotic mowers and improved operating margins [2]. Yet, the stock price declined by 0.64% in the open market, attributed to worries over negative free cash flow and high leverage [1].

The market’s ambivalence highlights a key tension: while leadership continuity signals stability, financial performance remains a wildcard. As stated by analysts at InvestingPro, Husqvarna’s stock is deemed undervalued despite a 31% revenue increase in Q1 2025, with projections of DKK2.8–3.1 billion in annual revenue [1]. This suggests that investors are cautiously optimistic about the company’s ability to execute its strategic priorities—innovation and sustainability—under Instone’s leadership.

Yet, macroeconomic pressures persist. Management flagged €100M in anticipated tariff-related headwinds for the remainder of 2025, compounding challenges in North America [4]. These factors, coupled with technical indicators describing the stock as a “sell candidate” in mid-August, underscore the fragility of investor sentiment [3].

Strategic Implications and Future Outlook

The leadership shift’s success will hinge on Husqvarna’s ability to balance short-term operational demands with long-term strategic goals. Instone’s track record in the Forest and Garden Division—where he oversaw a 16% growth in robotic mowers in Q1—positions him to accelerate innovation in high-margin segments [4]. However, the division’s North American struggles, marked by negative sales development and lower operating income, require urgent attention [4].

From a succession planning perspective, Husqvarna’s approach appears pragmatic but not without risks. The appointment of Maria Rönnberg as Executive Vice President People & Organization—a role critical to talent retention and cultural alignment—signals a focus on internal capabilities [2]. Yet, the absence of a detailed timeline for a permanent President of the Forest and Garden Division could deter investors seeking clarity.

Conclusion

Husqvarna’s leadership transitions exemplify the delicate interplay between interim stability and long-term strategic vision. While Instone’s internal promotion and Attar’s interim role provide continuity, the division’s operational and financial challenges—particularly in North America—demand swift, decisive action. For investors, the key will be monitoring how effectively the new leadership team mitigates macroeconomic risks while capitalizing on growth drivers like robotics and sustainability. In the end, the success of this leadership shift will be measured not just by quarterly results, but by the company’s ability to reinforce its market position in an increasingly competitive landscape.

Source:
[1] Korn Ferry. Interim managers: Short term, big impact. https://www.kornferry.com/insights/featured-topics/interim-talent/interim-manager-director-short-term-big-impact
[2] Husqvarna Group. Glen Instone appointed CEO of Husqvarna Group. https://www.husqvarnagroup.com/en/press/glen-instone-appointed-ceo-husqvarna-group-2376778
[3] InvestingPro. Husqvarna Holdings reports 31% revenue growth in Q1 2025. https://www.investing.com/news/transcripts/earnings-call-transcript-husqvarna-holdings-reports-31-revenue-growth-in-q1-2025-93CH-4031200
[4] Yahoo Finance. HUSQ B Q1-2025 Earnings Call Transcript. https://finance.yahoo.com/quote/HUSQ-B.ST/earnings/HUSQ-B.ST-Q1-2025-earnings_call-250067.html/