Electrolux Group Interim report Q3 2026

Highlights of the third quarter of 2026

• Net sales increased to SEK 33,919m (32,318) with organic sales growth of 3.5% (4.6). All regions contributed to the growth, driven mainly by increased sales volumes in Europe, Middle East & Africa, Asia Pacific (EMEA APAC), and Latin America, as well as positive price development in North America.
• Operating income excluding non-recurring items (NRIs) was SEK 912m (890), corresponding to a margin of 2.7% (2.8). Cost efficiency contributed SEK 1.4bn to operating income, offsetting the significant negative impact from external factors, primarily from increased raw material and logistics cost as a consequence of the Middle East conflict, and U.S. tariff costs.
• Operating income of SEK 607m (890), corresponding to an operating margin of 1.8% (2.8), included negative NRIs of SEK -305m referring to previously announced restructuring costs related to the strategic partnership with Midea Group in North America, and global organization and footprint optimization costs. In the quarter, the factory in Rosario, Argentina, was closed.
• Income for the period was SEK -340m (192) and earnings per share were SEK -0.46 (0.39).
• Operating cash flow after investments was SEK 3,608m (624), mainly driven by improved working capital, and U.S. tariff refunds. Investments continued to be at a low level.
• Net debt/EBITDA improved to 2.2x (3.5).
• Manufacturing joint venture in Anderson, U.S., for Fabric Care, with Midea Group in North America, became operational on September 1.

Events after the close of the period:

• Sales joint venture, U.S., and manufacturing joint venture in Juarez, Mexico, with Midea Group in North America related to Food Preservation products became operational on October 1.

President and CEO Yannick Fierling's comment

Strong strategic execution and resilient performance

The third quarter marked strong progress in the transformation of Electrolux Group. We continued to execute the strategic priorities and delivered resilient performance in a challenging market environment. Competitive pressure remained high, alongside significant cost headwinds from external factors, including raw material, logistic costs and U.S. tariffs.

In North America, we reached an important milestone as our strategic partnership with Midea Group became operational. All three joint ventures have been established, including the sales joint venture for Food Preservation and the manufacturing joint ventures in Juarez, Mexico, and Anderson, U.S. The closure of the Anderson factory contributed positively to earnings in the quarter. The repurposing of the site for laundry production is progressing according to plan. The sale of the Juarez assets to Midea Group was completed on October 1.

Across the Group, we continued to progress on the global organization and manufacturing footprint optimization. We are creating a leaner organization, with fewer employees and a greater share of resources closer to consumers and markets. In the third quarter, we closed the factory in Rosario, Argentina. In Italy, discussions with trade unions and institutions regarding the optimization plan are progressing according to plan.

Navigating diverse regional challenges

In North America, inflation concerns continued to weigh on consumer confidence. Demand shifted towards lower price points as consumers are impacted by inflation and prioritize affordability. Higher tariffs added significant cost pressure, forcing the industry to further increase prices in the quarter. In Europe, consumer confidence deteriorated as geopolitical uncertainty increased and inflation weighed on purchasing power and demand. In Brazil, market demand remained positive, although growth slowed significantly as elevated interest rates continued to affect consumers' financing and household spending.

Organic sales growth and strong cash generation

Organic sales grew in the quarter, with resilient performance across all regions. Strong commercial execution enabled us to increase our value market share for both the Electrolux and the AEG brands in Europe. In Latin America, growth was driven by higher volumes. In North America, organic sales growth mainly reflected the price increases implemented to mitigate higher tariff costs.

Operating income excluding non-recurring items was positively impacted by cost efficiency. This was offset by significant external headwinds, with the Middle East conflict impacting with full effect, leading to substantially higher raw material and logistics costs. U.S. tariff costs also had a negative impact in the quarter. We expect the pressure from external factors to remain in the coming quarters. Operating income benefited from a positive effect related to a recovery claim for overpaid tax, included in cost efficiency. This more than offset the negative effect from a customer-related provision in Brazil.

Operating cash flow after investment improved to SEK 3.6bn, supported by improved operating working capital and U.S. tariff refunds. The leverage ratio improved to 2.2x.

Full-year 2026 business and market outlook

We now expect volume, price and mix combined to have a neutral operating income contribution, compared with previously positive, reflecting the challenging market environment across regions. The expected contribution from cost efficiency is changed to about SEK 4.0bn, reflecting the strong traction in our cost efficiency initiatives. The business outlook for investments in consumer experience innovation and marketing, external factors and capital expenditure remains unchanged, as does our regional market outlook.

Building long-term competitiveness

We remain focused on what we can control to win in the marketplace: resetting North America operations, optimizing our organization and manufacturing footprint, and capturing growth opportunities.

We are reshaping Electrolux Group into a more agile, competitive and consumer-centric company. I am proud of the performance in the third quarter and the commitment and drive across Electrolux Group as we continue our transformation.

Webcast and telephone conference 09.00 CEST

A video webcast and simultaneous telephone conference is held at 09.00 CEST today, October 23. 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/pb2vmwpk/

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/BI00fde9a3778945cbb8a8c2c1c778f2cb

The press release and presentation material is available for download on the Investor Relations section on electroluxgroup.com.