Electrolux Group Interim report Q1 2026
STOCKHOLM, April 24, 2026 /PRNewswire/ --
Highlights of the first quarter of 2026
- Net sales amounted to SEK 29,543m (32,576) with flat organic sales of -0.5% (7.9). Organic sales growth was +3.6% in Europe, Middle East & Africa and Asia Pacific (EMEA APAC) and +8.0% in Latin America, driven mainly by higher volumes. North America reported an organic sales decline of -11.6%, mainly reflecting weaker market conditions.
- Operating income excluding non-recurring items was SEK 198m (452), corresponding to a margin of 0.7% (1.4). The decline was driven by an operating loss in North America, mainly due to increased costs for U.S. tariffs and a significant slowdown in market demand. Also, a change in accounting estimates for customer rebate provisions reflecting price volatility in prior months and a voluntary recall of a limited number of Frigidaire gas ranges, jointly impacted operating income negatively with approximately SEK 0.3bn. Regions EMEA APAC and Latin America reported improved operating income excluding non-recurring items, with an operating margin of 4.1% and 7.9%, respectively. Increased cost efficiency contributed approximately SEK 0.7bn to Group operating income.
- Operating income of SEK -266m (452), corresponding to an operating margin of -0.9% (1.4) included a negative non-recurring item of SEK -463m related to previously announced actions in region Latin America.
- Income for the period amounted to SEK -470m (42) and earnings per share were SEK -1.74 (0.16).
- Operating cash flow after investments was SEK -4,566m (-3,107), negatively impacted by an operating loss in North America and a seasonal increase in working capital.
- Events after the close of the period: Electrolux Group announced on April 22, it will end production at the Jászberény, Hungary factory. Production is expected to cease by the end of 2026.
- Electrolux Group on April 23 announced that it has entered into agreements with Midea Group to establish a highly complementary long-term strategic partnership in North America.
- Electrolux Group on April 23 announced that it accelerates its profitable growth strategy through a partnership with Midea, global organization and footprint optimization, and a fully underwritten rights issue of approx. SEK 9 billion.
President and CEO Yannick Fierling's comment
In recent months we have taken decisive steps to accelerate our profitable growth strategy. Yesterday initiatives were announced that will fundamentally strengthen Electrolux Group. We are forming a highly complementary, strategic partnership with Midea Group in North America. It will accelerate growth, improve profitability and form a strong platform moving forward. We have also initiated efforts to optimize our global manufacturing footprint and improve efficiency across the organization. In addition, the Board of Directors have resolved on a fully underwritten rights issue of approximately SEK 9bn to finance our profitable growth initiatives and strengthen the Group's balance sheet.
The home appliance industry is undergoing rapid change, with an increasingly dynamic market environment. In the first quarter I am pleased we strengthened our market positions in Europe and Brazil. Regions EMEA APAC and Latin America grew sales and improved operating income and margin, adjusted for non-recurring items. However, North America reported weaker sales reflecting a 10% decline in market demand, and an operating loss in the quarter. The Group's ambition for cost reductions remains high and with SEK 0.7bn in the first quarter, we are on track to reach the cost efficiency outlook of SEK 3.5-4.0bn for full-year 2026.
Europe, Middle East & Africa and Asia Pacific
Despite a flat European core appliance market in the quarter, organic sales increased. Operating income and margin improved, mainly driven by cost efficiency. Volume and mix improved, with increased market shares for the AEG and Electrolux brands and a further strengthened position in the important built-in kitchen segment.
Latin America
In Brazil, growth in consumer demand continued and Latin America reported good organic growth, with improved operating income and a higher margin, adjusted for non-recurring items. The competitive pressure was strong and the improvement in operating income was mainly driven by cost efficiency.
North America
Market demand in the U.S. declined significantly and price levels are estimated to have been up slightly, year-over-year, however not reflecting the year-over-year cost increase of implemented U.S. tariffs. Significant negative external factors, mainly related to tariff costs, and the organic sales decline were the main contributors to the operating loss. In addition, a change in accounting estimates for customer rebate provisions reflecting price volatility in prior months, and a voluntary recall of a limited number of Frigidaire gas ranges jointly impacted operating income negatively with approximately SEK 0.3bn.
As a result of a review of our global manufacturing footprint, the decision was announced earlier this week to cease production in Jászberény, Hungary, by the end of 2026. Also, a decision was taken during the first quarter to cease manufacturing in Santiago, Chile, by the end of April, and downsizing measures were implemented in Argentina.
Revisions to market outlook for 2026
Following the downturn in the U.S. home appliances market in the first quarter, the market outlook for North America in 2026 is revised from 'Neutral to Negative' to 'Negative'. The Brazilian home appliance market developed positively in the first quarter and although growth rates may slow somewhat throughout the year the market outlook for Brazil in 2026 is changed from 'Neutral' to 'Positive'. The market outlook for Europe remains 'Neutral'.
Our business outlook for 2026 remains overall unchanged, despite expected additional costs related to extended U.S. Section 232 import tariffs on products that contain steel and aluminum, applicable since April 6, 2026. Sizeable price increases have already been announced in North America with the ambition to offset the negative impact from tariffs.
A major milestone in the transformation journey of Electrolux Group
The strategic initiatives announced yesterday will be instrumental to our long-term profitable growth. It will enable us to invest in innovations and consumer experiences that will define the future of home appliances, leverage global scale, significantly reduce costs and increase efficiency.
Webcast and telephone conference 09.00 CEST
A video webcast and simultaneous telephone conference is held at 09.00 CEST today, April 24. Yannick Fierling, President and CEO, and Therese Friberg, CFO, will comment on the report.
If you wish to participate via webcast, please use the link below. Via the webcast you are able to ask written questions.
https://edge.media-server.com/mmc/p/ky4p5vf7/
If you wish to participate via telephone conference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the telephone conference.
https://register-conf.media-server.com/register/BId8cf6e47bcbc4ba880de8a08b333c2d3
Presentation material available for download on the Investor relations section on electroluxgroup.com
This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 24-04-2026 07:00 CET.
sFor more information:
Ann-Sofi Jönsson, Head of Investor Relations & Sustainability Reporting, [email protected], +46 73 025 1005
Maria Åkerhielm, Investor Relations Manager, [email protected], +46 70 796 3856
Henry Sjölin, Investor Relations Manager, [email protected], +46 76 863 51 85
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Interim report - ENG - Q1 2026 |
SOURCE Electrolux Group
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