Electrolux Group Interim report Q2 2026

Highlights of the second quarter of 2026 

• Net sales amounted to SEK 31,569m (31,276) with organic sales growth of 2.0% (1.8). Growth was driven by increased sales volumes in Europe, Middle East & Africa and Asia Pacific (EMEA APAC), and Latin America, while North America reported an organic sales decline mainly reflecting weaker market conditions.  

• Operating income excluding non-recurring items (NRIs) was SEK 1,202m (797), corresponding to a margin of 3.8% (2.5), with improvements in EMEA APAC and Latin America. In North America, operating income excluding NRIs benefited from a recognition of USD 34m (SEK 310m) referring to refund claims of IEEPA tariffs related to the first quarter 2026. North America also benefitted SEK 174m from changes in the U.S. traditional retiree group health plan, which impacted cost efficiency in the operating income bridge positively. In total, for the Group, cost efficiency measures contributed SEK 1.4bn to operating income. 

• Operating income of SEK -1,005m (797), corresponding to an operating margin of -3.2% (2.5), included total negative NRIs of SEK -2.2bn for the previously announced restructuring in connection with the strategic partnership with Midea Group in North America, global organization and footprint optimization, and approved claims for refunds of U.S. IEEPA tariffs related to 2025. 

• Income for the period was SEK -1,641m (178) and earnings per share were SEK -3.16 (0.36).  

• Operating cash flow after investments was SEK 1,607m (-741), driven by improved operating income excl. NRIs and lower working capital. Investments continued to be at a low level.  

• The execution of the strategic initiatives announced on April 23 are progressing according to plan. At the end of June the rights issue of approx. SEK 9.1bn was successfully completed. 

President and CEO Yannick Fierling's comment 

Underlying earnings improvement and strategic execution on track 

The second quarter marked an important milestone for Electrolux Group, as we took decisive actions to accelerate our transformation and strengthen the Group's long-term competitiveness. The announced partnership with Midea Group in North America, global organizational and footprint initiatives, and the successful completion of the rights issue are important steps in executing our strategic priorities. With implementation advancing according to plan and some positive impacts from our plan to improve efficiency already coming through, our focus is now on delivering the expected benefits of these initiatives. 

Solid commercial execution in regions EMEA APAC and Latin America resulted in organic sales growth above 4% for both regions in a highly competitive market environment. In Europe, the Electrolux and AEG brands continued to strengthen their market and price position, driven by core categories, such as built-in kitchen, in a continued subdued market. In Latin America, leveraging our strong market position, growth was supported by strong performance in small domestic appliances, driven by an extended product portfolio. In North America, weak market conditions continued to impact demand, with organic sales declining broadly in line with the estimated market contraction of approximately 3%. The newly extended U.S. Section 232 import tariffs valid from April 6, also applicable to Mexico, increased cost pressure across the industry, impacting earnings in the second half of the quarter. This additional cost pressure prompted widespread industry pricing actions. Electrolux Group led these increases, implementing price adjustments during the quarter between 5% and 20% depending on product category, compensating for part of the increased cost pressure from tariffs.  

The earnings improvement was driven by operational improvements in EMEA APAC and Latin America. In North America, weak market conditions and tariff-related cost pressure continued to weigh on performance. The cost pressure from the extended tariffs will remain and impact earnings in the coming quarters. External factors were negative, impacted by tariff costs and the consequences of the Middle East conflict resulting in higher logistics and raw material costs. Cost-efficiency initiatives contributed SEK 1.4bn in improvements during the quarter, supported by procurement savings and the first impacts from our plan to improve efficiency across the organization over the next two years. Cash flow also improved and, together with the successful completion of the approximately SEK 9bn rights issue, strengthened our balance sheet and financial flexibility. 

Market outlook unchanged and business outlook for the full-year partly revised 

Looking ahead, the market environment remains characterized by geopolitical uncertainty and macroeconomic volatility, which may continue to weigh on consumer demand throughout the year. We maintain a Neutral market outlook for Europe and a Negative outlook for North America for the full year. In Brazil, our Positive full-year market outlook remains unchanged, although the cumulative effects of elevated interest rates and inflation continue to affect consumer financing and spending. 

In the business outlook we have revised the capital expenditure outlook from SEK 4bn to approximately SEK 3.0-3.5bn. 

Execution key focus in a challenging market  

Our short-term priorities are clear: execute the transformation of North America, accelerate efficiency improvement across the organization, optimize the global manufacturing footprint and increase agility and performance focus throughout the organization.  

We are reshaping Electrolux Group to become a more competitive, resilient and consumer-centric company. The actions taken during the quarter mark important progress in executing our strategic priorities. While there is more work ahead, these initiatives strengthen our foundation for sustainable value creation over time. 

Webcast and telephone conference 09.00 CEST 

A webcast and simultaneous telephone conference is held at 09.00 CEST today, July 29. Yannick Fierling, President and CEO, and Therese Friberg, CFO, will comment on the report. 

If you wish to participate via webcast, please use the link below. Via the webcast you are able to ask written questions. 

https://edge.media-server.com/mmc/p/eyqknwsu/

If you wish to participate via telephone conference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the telephone conference. 

https://register-conf.media-server.com/register/BI0fd4302d88ba434abbb0aea373ae5433

The press release and presentation material is available for download on the Investor Relations section on electroluxgroup.com.