Electrolux (ELUX) Q1 2026 earnings summary

Executive summary

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

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

• Q1 performance showed strong results in EMEA, APAC, and Latin America, but significant decline in North America due to a market drop of over 10% and external factors.

• SEK 700 million in cost reductions achieved in Q1, on track for SEK 3.5–4 billion target by year-end.

• Net sales declined 9% year-over-year to SEK 29,543m, with flat organic sales growth.

Financial highlights

• Operating margin for Q1 was SEK 198 million, excluding non-recurring items; SEK -463 million included for Chile factory closure.

• Operating cash flow after investments was negative SEK 4.6 billion, impacted by reduced EBIT, higher inventory in North America, and seasonal working capital.

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

• High liquidity maintained at SEK 27.6 billion, including revolving credit facilities.

• Income for the period was SEK -470m; EPS was SEK -1.74.

Outlook and guidance

• North America market outlook for 2026 revised from neutral to negative due to continued downturn and tariff impacts.

• Brazil outlook upgraded to positive; Europe remains neutral amid 12-year low volumes and subdued demand.

• Price increases of 5%-20% announced in North America to offset tariff costs; volume, price, and mix expected to be positive in 2026.

• Full-year capital expenditure expected at SEK 4 billion; cost efficiency contribution to earnings anticipated at SEK 3.5–4 billion in 2026.

• Business outlook: positive for volume/price/mix and cost efficiency, negative for external factors and increased investments.