Electrolux Professional (EPRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw net sales decline 9.1% year-over-year to SEK 2,793m, with organic sales down 2.5% and EBITA margin falling to 10.0% from 11.8%, mainly due to weak U.S. Food & Beverage, currency headwinds, and tariffs.

• Europe delivered strong growth in Food & Beverage, while the U.S. remained soft but showed signs of recovery in March.

• Efficiency program launched in September is progressing well, generating SEK 90 million in Q1 savings, with further benefits expected throughout the year.

• The Middle East crisis created uncertainty, but business impact was limited so far.

• Paolo Schira appointed new President and CEO, effective May 2026.

Financial highlights

• EBITA was SEK 280m, down 23% year-over-year, with margin at 10.0%; operating income dropped 25.7% to SEK 227m, and EPS was SEK 0.55.

• Currency translation reduced top line and EBITDA by roughly 7%, with organic growth 0.7% higher without currency effects.

• Operating cash flow after investments decreased to SEK 69m from SEK 175m, mainly due to lower earnings and efficiency program outflows.

• Net financial items improved to SEK -15m from SEK -21m due to lower debt.

• Effective tax rate was 25.5% (down from 30.1%).

Outlook and guidance

• Price increases implemented from January are expected to fully offset the negative impact of tariffs and currency for the full year, with benefits expected from Q2 2026.

• Efficiency program savings are expected to increase each quarter, supporting improved profitability and targeting SEK 80m in 2026 and SEK 175m annually from 2027.

• R&D costs peaked last year and are expected to decrease, especially in the second half of the year.

• CapEx will remain above historical averages for the rest of the year to support major product launches.

• Continued macroeconomic and geopolitical uncertainty, especially due to the Middle East crisis.