Sweden's Electrolux Q2 net loss widens on tariff impact
Sweden's Electrolux Q2 net loss widens on tariff impact
Overview
Sweden appliance maker's Q2 organic sales grew 2%, led by EMEA APAC and Latin America
Company posted adjusted operating profit, but net loss due to restructuring and tariff-related charges
Electrolux completed SEK 9.1 bln rights issue and advanced cost efficiency initiatives
Outlook
Electrolux maintains neutral market outlook for Europe and negative outlook for North America for 2026
Company revises 2026 capital expenditure outlook to SEK 3.0-3.5 bln from SEK 4 bln
Electrolux sees positive market outlook for Brazil for 2026 despite elevated rates and inflation
Result Drivers
REGIONAL PERFORMANCE - Organic sales growth in EMEA APAC and Latin America, driven by higher volumes and strong brand positions, supported overall group growth
COST EFFICIENCY - Cost-efficiency measures, including procurement savings and organizational initiatives, contributed SEK 1.4bn to operating income
TARIFF AND EXTERNAL COST PRESSURE - Extended U.S. tariffs and higher logistics and raw material costs increased cost pressure, prompting price increases in North America
Company press release: ID:nWkr9Y6tZQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 31.57 bln |
|
Q2 Loss Per Share |
| SEK 3.16 |
|
Q2 Net Loss |
| SEK 1.64 bln |
|
Q2 Adjusted EBIT |
| SEK 1.20 bln |
|
Q2 EBIT |
| -SEK 1.005 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the appliances, tools & housewares peer group is "buy."
Wall Street's median 12-month price target for Electrolux AB is SEK30.00, about 22% above its July 28 closing price of SEK24.59
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)