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AB Electrolux Annual Report 2025 Overview

AB Electrolux has announced the release of its Annual Report for 2025, reflecting a notable performance despite challenging market conditions. The report reveals a 3.9% organic sales growth, predominantly fueled by expanding operations in North America and Latin America. This growth led to an operating income of SEK 3.7 billion and an operating margin of 2.8%, demonstrating resilience against tariffs and currency fluctuations.

Key Highlights of the Report

The Group has made significant strides in enhancing cost efficiency, contributing SEK 4.0 billion to earnings through rigorous product cost reduction efforts. A major component of the report is the introduction of a new vision: “To be the home appliance industry leader in consumer satisfaction – delivering outstanding lifetime experiences with solutions that always get better.” This vision is part of a renewed strategy focusing on four critical pillars that will drive growth and profitability:

1. Consumer Preference: Electrolux has refined its brand positioning for its main product lines, including Electrolux, AEG, and Frigidaire. The launch of new products in 2025 received excellent ratings from consumers, reiterating the Group's commitment to delivering high-quality, reliable, and sustainable appliances.

2. Lifetime Value Creation: Emphasizing connectivity, the majority of new Electrolux products now feature smart technology that allows for remote upgrades and increased durability. This innovation aims to enrich consumer engagement throughout the entire ownership journey.

3. Cost Leadership: The Group has made substantial progress in embedding cost-excellence principles across its operations. Strategies focused on product cost-outs, optimized processes, and utilizing technology for automation aim to enhance efficiency and reduce costs further.

4. Cash Generation: The strategic priorities outlined are tailored to create organic growth while maintaining healthy margins, which supports robust cash generation. Electrolux has implemented disciplined financial management to monitor cash flows, reduce capital expenditure, and ensure measurable returns on investments.

Sustainability Efforts

The sustainability section of the report emphasizes Electrolux's commitment to eco-friendly initiatives:

• - The Group's most resource-efficient products constituted 26% of total units sold and contributed 36% to gross profit in 2025.
• - By the end of the year, Electrolux successfully reduced emissions in Scope 1 and 2 by 45% and in Scope 3 by 33% compared to 2021 levels.
• - A remarkable 97% of the electricity and 67% of the total energy used in operations came from renewable sources in 2025.
• - Recycled materials, including steel and plastic, accounted for 23% of all materials used in manufacturing.
• - The Group maintained a strong safety performance within the industry, reporting a total case incident rate of 0.33.

The complete Annual Report is available in both Swedish and English on the Electrolux Group website. This publication reveals important information that AB Electrolux is obliged to disclose in accordance with the Securities Markets Act, and further details are available through Electrolux's investor relations team.