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Electrolux Group Interim Report Q2 2026

Electrolux Group recently released its quarterly report for the second quarter of 2026, showcasing pivotal developments in its financial status and strategic direction. The company reported net sales of SEK 31,569 million, a slight increase from SEK 31,276 million in the same period last year, reflecting an organic sales growth of 2.0% compared to 1.8% in Q2 2025. The growth can be attributed to an uptick in sales volumes across various global regions including Europe, the Middle East, Africa, Asia Pacific, and Latin America. However, the North American market presented challenges, with a reported decline in organic sales primarily driven by adverse market conditions.

Operating income, excluding non-recurring items (NRIs), was recorded at SEK 1,202 million, resulting in a margin of 3.8%, a notable improvement from last year’s 2.5%. The increase was largely enabled by successful cost efficiency measures that collectively contributed SEK 1.4 billion to the operating income of Electrolux Group. Furthermore, North America experienced a temporary financial boost due to the recognition of refunds related to U.S. tariffs, easing some of the operational strains.

Despite the evident improvements, the report also highlighted areas of concern. The operating income, when accounting for NRIs, dipped to SEK -1,005 million due to previously disclosed restructuring costs linked to the strategic partnership with Midea Group in North America and adaptations for optimizing global operations. The total impact of these non-recurring items on the financial outcome amounted to SEK -2.2 billion. The current income for this quarter stood at SEK -1,641 million, a stark contrast compared to earnings of SEK 178 million in Q2 2025, with earnings per share adjusting to SEK -3.16 from SEK 0.36.

Another positive highlight was the operating cash flow following investments, which surged to SEK 1,607 million, a significant turnaround from the SEK -741 million reported in the previous year. This result underscored the beneficial impacts of improved operational performance combined with efficient working capital management during this quarter.

In his commentary on the report, President and CEO Yannick Fierling expressed optimism about the company’s strategic execution and the ongoing transformation initiatives intended to bolster Electrolux’s competitiveness in the market. He emphasized that the strong commercial performance in EMEA APAC and Latin America, with organic sales growth exceeding 4%, showcases the brand's resilience, particularly in the face of heightened competition.

Electrolux remains strategically focused on enhancing operational efficiency across organizational sectors. In North America, the market has continued to exhibit sluggish demand, primarily attributed to market contractions of approximately 3% and external cost pressures, particularly from extended U.S. Section 232 tariffs, which have significantly impacted profitability. In response to these challenges, Electrolux has managed pricing strategies, effectuating increases varying between 5% and 20% across different product categories to counterbalance heightened costs stemming from tariffs.

Looking ahead, Electrolux maintains a cautious outlook, highlighting geopolitical uncertainties and economic fluctuations that are likely to influence consumer demand. The company holds a neutral market outlook for Europe but a negative perspective for North America. In contrast, predictions for Brazil remain positive despite ongoing challenges posed by high-interest rates and inflation affecting consumer financing. Moreover, capital expenditure estimates have been revised downward from SEK 4 billion to approximately SEK 3.0-3.5 billion, reflecting a strategic pivot aligned with current market dynamics.

The upcoming strategic priorities for Electrolux focus on executing transformation in North America, improving operational efficiencies, and optimizing its global manufacturing footprint. This ongoing transformation aims to position Electrolux as a more competitive and consumer-centric entity, where the advancements made in Q2 serve as a foundational step towards sustainable long-term value creation.

For further engagement, a webcast and telephone conference is scheduled for today at 09:00 CEST, allowing stakeholders to participate in discussions regarding the report.

For more in-depth insights, stakeholders are encouraged to access the full report available on the Investor Relations section of Electrolux Group's website.