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1. Company Snapshot

1.a. Company Description

Electrolux Professional AB (publ) provides food service, beverage, and laundry solutions to restaurants, hotels, healthcare, educational, and other service facilities.The company operates in two segments, Food & Beverage and Laundry.It offers slicers and food processors, vegetable washers, spin dryers, planetary mixers, vacuum packers and sealers, multi-purpose peeling machines, fryers, boiling and braising pans, grills and griddles, ventilation equipment, modular cooking ranges, fry tops, combi and convection ovens, refrigerated cabinets and counters, saladettes, cold rooms, blast chillers and freezers, portable mixers, turbo liquidizers, meat mincers, dough kneaders and sheeters, salamanders, wine cellars, ice makers and flakers, and trolleys, as well as stainless steel fabrication solutions.


The company also provides commercial dishwashers and accessories, waste management systems, and handling systems; cabinets, cupboards, worktables, and shelves; and coffee grinders and brewers, espresso coffee machines, coffee urns, hot and cold beverage dispensers, cold juice dispensers, beer dispensing systems, frozen granita and ice cream dispensers, soft serves, and soft ice cream dispensers.In addition, it offers front and side load washers, efficient dosing systems, barrier washers, wash and dry systems, tumble dryers, drying cabinets, semi-professional washers and dryers, ironers, industrial ironers, and finishing machines.The company operates in Europe, the Asia-Pacific, the Middle East, Africa, and the Americas.


The company was incorporated in 1898 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on EPRO

Electrolux Professional AB's recent performance is driven by its potential undervaluation. Despite global market declines, the company's robust GDP growth and retail sales in the US suggest underlying economic strength that could present opportunities for investors. Furthermore, the company's ability to adapt to changing conditions in the evolving investment landscape, such as tariff uncertainties and fluctuating economic indicators, makes it a promising small-cap company with strong potential.

1.c. Company Highlights

2. Electrolux Professional Group's Q3 2025 Earnings: A Strong Performance Amidst Market Uncertainty

Electrolux Professional Group reported a robust third quarter of 2025, with sales growth, improved profitability, and a significant increase in EBITA despite market uncertainty. The company's EPS came in at 0.465, beating analyst estimates of 0.405. The revenue growth was driven by the Food & Beverage segment, while the Laundry segment remained flat. The EBITA margin improved, and the order intake was positive for Food & Beverage, with Laundry showing signs of improvement in October. The company's financial performance was also reflected in its solid cash flow generation of over SEK 400 million.

Publication Date: Dec -02

📋 Highlights
  • Organic Growth & Margin Improvement:: Q3 2025 organic sales growth driven by Food & Beverage, with EBITA margin up despite 0.5pp drag from currency translation.
  • Operational Restructuring:: 350 employees impacted by cost-reduction program, targeting SEK 85M savings in 2026, on track with plans.
  • Geographic Performance:: Europe contributes 50% of sales, with strong regional performance in both Laundry and Food & Beverage segments.
  • R&D & Product Innovation:: R&D at 4.5% of sales, with new product launches (e.g., cooking line in Q1 2027) expected to drive margin expansion and sales growth.
  • Financial Resilience:: Solid cash flow of over SEK 400M, net debt-to-EBITDA reduced to 1.2x, and EBITA expansion anticipated despite FX/tariff headwinds.

Segment Performance and Regional Highlights

The Food & Beverage segment drove organic sales growth, with Europe remaining a strong region, accounting for roughly 50% of sales. Both Laundry and Food & Beverage performed well in Europe. The US market was impacted by tariff announcements, but the company is taking action on pricing to offset FX and tariff impacts, with price increases set to take effect in January and March. The company's acquisition strategy has been successful, as evident from the product innovation award won in the US.

Operational Efficiency and Cost Reduction

The company has launched a program to streamline operations, reduce costs, and change skills, affecting 350 employees, with an expected cost reduction of SEK 85 million in 2026. The program is progressing according to plan, and the company is preparing for new product launches from January 2026, aiming to drive growth and profitability. R&D spending currently stands at 4.5% of net sales, expected to decrease slightly in the first part of 2026.

Valuation and Outlook

With a P/E Ratio of 27.84 and an EV/EBITDA ratio of 10.68, the company's valuation appears to be reasonable, considering its strong financial performance and growth prospects. Analysts estimate revenue growth of 2.0% for next year. The company's net debt-to-EBITDA ratio decreased to 1.2x, and the gearing is currently 1.2x EBITDA, with a target of 2.5. The company's focus on M&A, dividends, buybacks, and organic growth investments is expected to drive shareholder value.

TOSEI Acquisition and Synergies

The TOSEI acquisition is experiencing different dynamics in Laundry and Vacuum, with synergies emerging. The company launched Electrolux-produced products in TOSEI, with a positive impact on sales. The acquisition is expected to contribute to the company's growth and profitability.

3. NewsRoom

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3 European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 39.3%

Nov -06

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Electrolux Professional AB (FRA:4KK1) Q3 2025 Earnings Call Highlights: Navigating Challenges ...

Oct -30

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Undiscovered Gems in Europe Featuring 3 Promising Small Caps

Oct -08

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Lisi And 2 Other Undiscovered European Gems To Consider

Jun -25

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Exploring Europe's Undiscovered Gems In May 2025

May -27

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European Small Caps With Insider Buying: 3 Undervalued Picks

May -13

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cBrain And 2 Other Undiscovered Gems in Europe

Apr -24

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Exploring Electrolux Professional And 2 Other Undiscovered European Gems

Mar -20

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.64%)

6. Segments

Catering and Drinks

Expected Growth: 3%

Electrolux Professional AB's Catering and Drinks segment growth is driven by increasing demand for commercial kitchen equipment and beverage solutions, particularly in the hospitality and foodservice industries. Additionally, the trend towards outsourcing food services and the need for energy-efficient equipment are contributing to the segment's 3% growth.

Laundry

Expected Growth: 2%

Electrolux Professional's 2% laundry segment growth is driven by increasing demand for energy-efficient and sustainable laundry solutions, particularly in the hospitality and healthcare industries. Additionally, the company's focus on innovative product design, digitalization, and customer-centric services contributes to its growth momentum.

7. Detailed Products

Cooking Ranges

Electrolux Professional's cooking ranges offer a wide range of cooking solutions for commercial kitchens, including gas, electric, and induction cooking options.

Dishwashers

Electrolux Professional's dishwashers are designed for heavy-duty use in commercial kitchens, providing fast and efficient cleaning of dishes and utensils.

Refrigeration Units

Electrolux Professional's refrigeration units offer a range of solutions for commercial kitchens, including refrigerators, freezers, and cold rooms.

Ice Machines

Electrolux Professional's ice machines provide a convenient and efficient way to produce ice for commercial kitchens and bars.

Food Preparation Equipment

Electrolux Professional's food preparation equipment includes mixers, slicers, and other appliances designed to streamline food preparation in commercial kitchens.

Washing Systems

Electrolux Professional's washing systems provide a comprehensive solution for cleaning and sanitizing utensils, equipment, and surfaces in commercial kitchens.

Beverage Equipment

Electrolux Professional's beverage equipment includes coffee machines, blenders, and other appliances designed for commercial kitchens and bars.

8. Electrolux Professional AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Electrolux Professional AB (publ) faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Electrolux Professional AB (publ) has a high bargaining power of customers due to the presence of large and established customers in the market.

Bargaining Power Of Suppliers

Electrolux Professional AB (publ) has a low bargaining power of suppliers due to the presence of multiple suppliers in the market.

Threat Of New Entrants

Electrolux Professional AB (publ) faces a moderate threat of new entrants due to the presence of barriers to entry and the need for significant investment in the industry.

Intensity Of Rivalry

Electrolux Professional AB (publ) operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.89%
Debt Cost 10.85%
Equity Weight 70.11%
Equity Cost 10.85%
WACC 10.85%
Leverage 42.64%

11. Quality Control: Electrolux Professional AB (publ) passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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2G Energy

A-Score: 5.0/10

Value: 2.8

Growth: 8.1

Quality: 6.9

Yield: 1.9

Momentum: 8.5

Volatility: 2.0

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Grenergy Renovables

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Value: 4.2

Growth: 9.9

Quality: 4.3

Yield: 0.0

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Beijer Alma

A-Score: 4.7/10

Value: 2.4

Growth: 5.4

Quality: 5.3

Yield: 2.5

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Electrolux Professional

A-Score: 4.2/10

Value: 4.0

Growth: 4.7

Quality: 5.7

Yield: 1.9

Momentum: 3.5

Volatility: 5.3

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Komax

A-Score: 2.7/10

Value: 6.3

Growth: 2.9

Quality: 2.6

Yield: 1.2

Momentum: 0.0

Volatility: 3.0

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Feintool

A-Score: 2.3/10

Value: 6.2

Growth: 1.1

Quality: 1.9

Yield: 1.2

Momentum: 0.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.2$

Current Price

65.2$

Potential

-0.00%

Expected Cash-Flows