Electrolux (ELUX) Q4 2025 earnings summary

Executive summary

• Organic sales reached SEK 131,282m in 2025, up 3.9% year-over-year, close to the 4% midterm target, despite currency effects and divestments.

• Operating income improved to SEK 3.7bn (2.8% of net sales), up from SEK 1.1bn, driven by SEK 4bn in cost reductions.

• Q4 2025 net sales were SEK 35,112m, with organic growth of 2.0% and the strongest Q4 cash flow ever at SEK 5.2bn, mainly from inventory reduction.

• Financial position strengthened, with net debt/EBITDA at 3.0x and no dividend proposed for 2025.

• Market share gains in Europe, Asia Pacific, Middle East, Africa, and Brazil; flat in North America.

Financial highlights

• Q4 sales grew 2%, driven by volume and positive mix in Europe, Middle East, Asia Pacific, and Latin America.

• Full-year sales growth of 3.9% with volume growth in all business areas and positive group mix.

• Q4 EBIT (excluding non-recurring items) increased 21.5% to SEK 1,517m, with margin up to 4.3% from 3.3%.

• SEK 4bn in cost reductions achieved in 2025, at the top end of the targeted range.

• Return on net assets improved to 9.4% for FY 2025.

Outlook and guidance

• 2026 market demand expected to be neutral in Europe and Brazil, and neutral to slightly negative in North America.

• Volume, price, and mix expected to be positive in 2026, but negative price development and external headwinds, mainly tariffs, will partly offset gains.

• SEK 3.5–4bn in cost efficiency targeted for 2026; capital expenditure to increase to approximately SEK 4bn.

• Mid-term targets: annual organic sales growth ≥4%, operating margin ≥6%, return on net assets >20%.

• External headwinds, mainly tariffs, expected to be significant; currency and raw material impact seen as neutral.