Highlights of the second quarter of 2025

• Net sales amounted to SEK 31,276m (33,819) with an organic sales growth of 1.8% (6.8), driven by growth in North America and Latin America, partly offset by a slight decline in Europe, Asia-Pacific, Middle-East and Africa.
• Operating income improved to SEK 797m (419) corresponding to an operating margin of 2.5% (1.2), driven mainly by an improvement in North America that reported a positive operating income in the quarter. Group operating income included a positive effect from the divestment of the Kelvinator trademark portfolio in India of SEK 180m. 
• Income for the period amounted to SEK 178m (-80) and earnings per share were SEK 0.66 (-0.30).
• Operating cash flow after investments was SEK -741m (1,226), negatively impacted by an increase in working capital and the payment of the previously communicated French antitrust fine.

President and CEO Yannick Fierling's comment

Market outperformance in North America, amid uncertain market conditions

Organic sales growth was slightly positive in the quarter at 1.8%, driven by North America and Latin America. Business area Europe, Asia-Pacific, Middle East and Africa reported a slight organic sales decline, with a negative price development. In Europe, our main brands continued to outperform the market, whereas the general market demand declined somewhat with increased competitive pressure, and replacement driven demand. In North America, market demand declined slightly in the quarter, and we continued to outperform the market. In both Europe and North America, consumers continue to shift to lower price points and demand was impacted by uncertainty due to ongoing geopolitical developments. In Latin America, consumer demand increased slightly. As anticipated, in Brazil, growth was hampered by inflationary pressure and increased interest rates. Business area Latin America reported slight organic sales growth.

Improved operating earnings with positive contribution from North America

Operating margin improved, with a positive contribution from North America where list price increases offset increased costs related to U.S. tariffs introduced in the quarter. The competitive pressure and promotional activity were high in the quarter. Latin America continued to deliver an operating margin above our Group mid-term target of 6%. In Europe, Asia-Pacific, Middle East and Africa, the underlying operating income was lower mainly due to a negative price development. Operating cash flow was negative, impacted by a seasonal increase in working capital, a negative impact related to U.S. tariffs and a payment of the earlier announced French antitrust fine.

Our market and business outlook for the year remains unchanged, and we reiterate our aim to offset tariff-related cost increases in North America through price increases.

Looking ahead, consumer centricity and transformation in focus

In the quarter, we executed well on our long-term strategic priorities. We continued our journey to strengthen our brands, with new marketing campaigns to support recently launched innovations. In the U.S. we are currently launching new Frigidaire ovens with stone-baked pizza mode. North America has been a focus point for improvements, and in the quarter, the business area reported a positive operating income. We continued to make good progress on cost-efficiency measures, delivering cost savings from procurement as well as product engineering. Maintaining a consumer-centric approach, as well as increasing speed and agility, are key components of our strategy. In the coming quarter, we will increase our focus on the major transformation areas and to drive speed and agility.

The second quarter results demonstrate our commitment to deliver on our strategic priorities amid challenging market conditions.

Webcast and telephone conference 09.00 CET

A video webcast and simultaneous telephone conference is held at 09.00 CET today, July 18. 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/oewb55np

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/BIe8ae8b00f3c74d6994d412fbd0737d8c

Presentation material available for download

www.electroluxgroup.com/ir