Electrolux (ELUXb.ST): Operating profit beats driven by narrower underlying losses in North America

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Electrolux (ELUXb.ST): Operating profit beats driven by narrower underlying losses in North America

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29 Jul 2026 03:00:54 ET │ 11 pages

Electrolux (ELUXb.ST)

Operating profit beats driven by narrower underlying losses in North

America

CITI'S TAKE Neutral / High Risk

Price (28 Jul 26 17:30) SKr24.59 Operating profit (excluding non-recurring items) of SEK1.2bn includes

Target price SKr39.61 some benefits of one-offs, including higher IEEPA refunds and a US

healthcare one-off in North America. Nonetheless, the narrower Expected share price return 61.1%

underlying loss in North America (-3% margin underlying versus -6% Expected dividend yield 0.0%

expected) is a sequential improvement, and drives the >100% beat at the Expected total return 61.1%

group level versus expectations. Against the backdrop of recent share Market Cap SKr20,273M

price weakness this should be well received, although the benefits of the US$2,092M

US JVs from Q3 will be a more important determinant of mid-term profit.

The key focus for the call will likely be the price/cost dynamics following

s232 tariffs from April, and the expected net impacts into H2. Nonetheless

we’d expect to see a positive share price reaction and double digit % Martin WilkieAC

increases (from a low base) to consensus operating profit. +44-207-986-4077

martin.wilkie@citi.com

Inside the numbers — Overall performance was above expectations, with net sales Avinash Mundhra

of SEK31.6bn beating consensus of SEK31.0bn and supported by positive volume- +44-20-7986-6230

led growth. Organic growth of 2.0% came in above consensus of 0.5%. Adj. EBITA of avinash.mundhra@citi.com

SEK1.2bn materially exceeded consensus of SEK495m. Adj. EBITA margin of 3.8%

Vivek Midha, CFAwas well above consensus of 1.4%.