#Sustainability #Sweden #Stockholm #Electrolux #2025 report

AB Electrolux Unveils Comprehensive Insights in Its 2025 Annual Report

AB Electrolux has officially released its Annual Report for the year 2025, available for perusal on the Group's website. This report encapsulates a year of remarkable achievements, strategic advancements, and a renewed commitment to sustainability, showcasing the company’s efforts to adapt to changing market dynamics.

Highlights of the 2025 Annual Report

One of the standout achievements highlighted in the report is the organic sales growth of 3.9%, primarily driven by strong performance in North America and Latin America. This growth signals Electrolux's robust market presence and its ability to navigate through various challenges.

The company reported an operating income of SEK 3.7 billion with an operating margin of 2.8%, reflecting strong operational efficiency despite facing significant hurdles including tariffs and currency fluctuations. A noteworthy contribution to the Group's earnings was made through cost efficiency, amounting to SEK 4.0 billion, primarily achieved through strategic product cost reductions and streamlined production processes.

In addition to financial highlights, AB Electrolux launched a new vision aimed at leading the home appliance industry in customer satisfaction. The vision emphasizes delivering superior lifetime experiences through innovative solutions that continuously enhance performance.

Renewed Strategy for Growth

The report outlined a renewed strategy focused on driving growth, structured around four key pillars:

1. Consumer Preference: In 2025, Electrolux enhanced brand positioning for its three main brands – Electrolux, AEG, and Frigidaire. New product launches received excellent ratings from consumers across diverse regions, reinforcing the company's promise of delivering premium quality and reliable appliances aligned with sustainability goals.

2. Lifetime Value Creation: A significant number of new products are now enabled with connectivity features, which allow for remote upgrades and enhancements. By fostering connected ecosystems, Electrolux aims to expand service offerings and improve product reliability, thus ensuring consumer engagement and satisfaction throughout the ownership experience.

3. Cost Leadership: 2025 marked a pivotal advance in embedding cost excellence within the Group. Key priorities underscore product cost reductions, value engineering, and streamlined supplier strategies. Efficiency enhancements across the board, including technology deployment and process optimization, are set to diminish overall costs.

4. Cash Generation: The initiatives outlined in the renewed strategy aim to foster organic growth and healthy margins, supporting solid cash generation. AB Electrolux maintained disciplined management of its financial resources throughout 2025, focusing on effective working capital management, cash flow monitoring, and strategic capital expenditures that promise measurable returns.

Sustainability Efforts

The report also presents comprehensive insights into the Group’s sustainability initiatives. Significant highlights include:

• - Resource-Efficient Products: The Group's most resource-efficient products constituted 26% of total units sold and accounted for 36% of overall gross profit.
• - Emissions Reduction: By the end of 2025, the Group successfully achieved a 45% reduction in Scope 1 and 2 emissions and a 33% reduction in Scope 3 emissions when compared to 2021.
• - Renewable Energy Usage: A remarkable 97% of the electricity and 67% of total energy used in operations were sourced from renewable sources in 2025.
• - Recycled Materials: The Group utilized 23% of recycled steel and plastic in its manufacturing processes, reiterating its commitment to sustainable manufacturing practices.
• - Health and Safety Record: Electrolux reported a commendable total case incident rate of 0.33, showcasing its commitment to health and safety standards within the industry.

The comprehensive Annual Report, replete with financial data and sustainability statements, is accessible in both Swedish and English on Electrolux's official website. Furthermore, the Annual Report is available in the European Single Electronic Format (ESEF). This publication serves as a public disclosure under the Securities Markets Act, ensuring transparency and adherence to regulatory standards.

For further information, stakeholders and interested parties can reach out to AB Electrolux's Investor Relations team. This includes An-Sofi Jönsson, the Head of Investor Relations, along with Maria Åkerhielm and Henry Sjölin who manage investor relations, providing insights into the Group’s achievements and future direction.