Electrolux (ELUX) Q1 2025 earnings summary

Executive summary

• Achieved 7.9% organic growth in Q1 2025, with net sales at SEK 32,576m and operating margin at 1.4%, mainly driven by North and Latin America.

• Operating income improved to SEK 452m from a loss of SEK -720m, with all business areas showing margin improvement year-over-year.

• SEK 1.4 billion in cost savings delivered, supporting profitability and margin recovery.

• Innovation and marketing investments continued, with new product launches and sustainability leadership recognized.

• Income for the period was SEK 42m, up from a loss of SEK -1,230m; EPS reached SEK 0.16.

Financial highlights

• Net sales rose to SEK 32,576m, up 4.8% year-over-year; organic growth was 7.9%.

• Operating margin improved to 1.4% from -2.3% in Q1 2024, with EBIT (excluding non-recurring items) at SEK 452m.

• Operating cash flow after investments was SEK -3,107m, reflecting normal seasonal outflow.

• Net debt/EBITDA improved to 3.4x from 5.2 year-over-year.

• Return on net assets was 4.7%, up from -7.3% a year ago.

Outlook and guidance

• North America market outlook revised to neutral-to-negative due to tariff and inflation risks; Europe and Latin America remain neutral.

• Expect positive organic EBIT contribution for 2025, mainly from price increases.

• SEK 3.5–4 billion in cost efficiency targeted for 2025; capex expected at SEK 4–5 billion.

• Business outlook: Positive for volume/price/mix and cost efficiency; negative for external factors (tariffs, FX); increased investments in marketing and innovation.