Sweden's Electrolux posts Q3 net loss on high costs and US tariffs
Sweden's Electrolux posts Q3 net loss on high costs and US tariffs
Overview
Sweden appliance maker's Q3 net sales rose 5%, with 3.5% organic sales growth
Adjusted operating income rose, as cost efficiency offset higher raw material and logistics costs
Company posted a net loss in Q3, reflecting restructuring costs and external headwinds
Outlook
Electrolux expects volume, price and mix to have a neutral operating income impact in 2026
Company expects about SEK 4.0 bln contribution from cost efficiency in 2026
Electrolux expects external cost pressures to remain in coming quarters
Result Drivers
COST EFFICIENCY - Co said SEK 1.4bln in cost efficiency gains helped offset higher raw material, logistics and tariff costs
JOINT VENTURES - Strategic partnership with Midea Group in North America became operational, with new manufacturing and sales joint ventures established
REGIONAL DEMAND SHIFTS - Demand in North America shifted to lower price points due to inflation, while growth in Latin America slowed as high interest rates affected consumer spending
Company press release: ID:nWkrxZnC0
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| SEK 33.92 bln |
|
Q3 Loss Per Share |
| SEK 0.46 |
|
Q3 Net Loss |
| SEK 340 mln |
|
Q3 Adjusted EBIT |
| SEK 912 mln |
|
Q3 EBIT |
| SEK 607 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 2 "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 SEK29.00, about 11.7% above its October 22 closing price of SEK25.97
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Oct 22 - Sweden's Essity slightly misses Q3 net sales estimates
Oct 22 - Sweden's Sandvik Q3 revenue beats estimates on order growth
Oct 22 - As Americans eat out less, paper towel maker Essity feels the pinch
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.)