Electrolux (ELUX) Q1 2026 earnings summary

Executive summary

• Strategic partnership with Midea in North America announced to drive growth, profit, and shared CapEx, alongside organizational footprint optimization and product/geographic expansion.

• Fully underwritten SEK 9 billion rights issue launched to finance initiatives and strengthen the balance sheet.

• Q1 showed strong results in EMEA, APAC, and Latin America, but significant decline in North America due to market downturn, tariffs, and external factors.

• Major cost reduction progress with SEK 700 million delivered in Q1, targeting SEK 3.5–4 billion for the year.

Financial highlights

• Net sales for Q1 2026 were SEK 29,543 million, down 9.3% year-over-year; organic sales flat overall.

• Operating income excluding non-recurring items was SEK 198 million (margin 0.7%), down from SEK 452 million in Q1 2025.

• Operating cash flow after investments was negative SEK 4.6 billion, mainly due to reduced EBIT and higher working capital, especially in North America.

• Net debt to EBITDA at quarter-end was 3.8x; pro forma for rights issue, 2.8x.

Outlook and guidance

• North America market outlook for 2026 revised from neutral to negative due to continued downturn and tariff impacts; Brazil upgraded to positive, Europe remains neutral.

• Announced 5%-20% price increases in North America to offset tariffs; expect positive volume, price, and mix in 2026.

• Full-year CapEx expected at SEK 4 billion; cost efficiency to contribute SEK 3.5–4 billion in 2026.