Sweden's Electrolux says Q1 results weighed down by US tariffs; is negative on N.America markets

Electrolux AB

24/04/2026 06:11

Overview

Sweden home appliance maker's Q1 net sales declined, with organic growth down 0.5%

Company posted Q1 net loss as North America faced weaker demand and higher tariff costs

Electrolux announced SEK 9 bln rights issue and strategic partnership with Midea Group

Outlook

Electrolux revises 2026 North America market outlook from "Neutral to Negative" to "Negative"

Company changes 2026 Brazil market outlook from "Neutral" to "Positive"

Electrolux expects additional costs from extended U.S. Section 232 import tariffs in 2026

Result Drivers

NORTH AMERICA WEAKNESS - Organic sales in North America fell sharply due to weaker market demand and increased U.S. tariff costs, resulting in an operating loss

COST EFFICIENCY - Improved operating income in EMEA APAC and Latin America was mainly driven by increased cost efficiency

NON-RECURRING ITEMS - Operating income was negatively impacted by a change in accounting estimates for customer rebate provisions, price volatility, and a voluntary product recall

Company press release: ID:nWkr672MJ0

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
SEK 29.54 bln
Q1 EPS
-SEK 1.74
Q1 Net Income
-SEK 470 mln
Q1 Adjusted EBIT
SEK 198 mln
Q1 EBIT
-SEK 266 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 SEK70.00, about 16.1% above its April 23 closing price of SEK60.30

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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.)