Electrolux Professional (EPRO) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were SEK 3,036m, down 5.0% year-over-year, with organic sales down 3.8% due to postponed projects in APAC/MEA and lower U.S. volumes, but profitability remained solid, supported by a US tariff refund and cost-saving initiatives.

• EBITA margin held at 12.4% (12.3% last year), aided by a SEK 21m US tariff refund; underlying margin was 11.7%.

• Operating cash flow after investments dropped to SEK 125m from SEK 305m, mainly due to lower earnings and higher working capital.

• CEO transition occurred in May 2026, with a new focus on disciplined execution, efficiency, and commercial excellence.

• Efficiency program is progressing as planned, delivering SEK 45m in YTD savings and targeting SEK 80m for the full year.

Financial highlights

• Net sales for Q2: SEK 3,036m (down 5.0%); H1: SEK 5,829m (down 7.0%).

• Gross profit margin improved to 36.1% from 34.8% year-over-year.

• EPS increased to SEK 0.80 from SEK 0.75 year-over-year, despite lower EBITDA and EBITA.

• Net income Q2: SEK 230m (up 6.2%); H1: SEK 388m (down 6.7%).

• Net debt increased to SEK 1,959m as of June 30, 2026, due to dividend payments and acquisition-related outflows.

Outlook and guidance

• Order intake increased and order stock remains healthy, expected to convert to sales in Q3 and beyond.

• Price increases and surcharges, especially in Laundry, are expected to offset inflationary and tariff pressures through 2026.

• Efficiency program supports profitability, with a path to a 15% EBITA margin over the mid-term.

• R&D spending will decrease year-over-year in H2 as major product launches are completed.

• Management is focused on converting strong order stock into sales in Q3 and beyond.