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1. Company Snapshot

1.a. Company Description

AB Electrolux (publ), together with its subsidiaries, manufactures and sells household appliances in Europe, North America, Latin America, the Asia/Pacific, the Middle East, and Africa.The company offers various appliances, such as refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners, microwave ovens, floor-care products, vacuum cleaners, water heaters, heat pumps, and other small domestic appliances, as well as consumables and accessories.It also provides hobs, ovens, and hoods; and tumble dryers.


The company offers its products under the Electrolux, AEG, and Frigidaire brands through retailers, buying groups, and independent stores.AB Electrolux (publ) was founded in 1901 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on ELUX

The recent 3-month performance of AB Electrolux (publ) was negatively impacted by tariff challenges, which affected the company's growth despite strong organic growth in North and Latin America. The Q1 2025 earnings call highlighted the company's ability to navigate market dynamics, but also underscored the ongoing impact of tariffs. Additionally, a correction in the Q1 2025 interim report press release due to a missing MAR label added to the company's regulatory concerns. Furthermore, the recent marketing campaign launch by Frigidaire, a leading home appliance company owned by Electrolux Group, may have diverted management's attention from core business operations.

1.c. Company Highlights

2. Electrolux Q3 Earnings: Revenue Growth and Margin Expansion

Electrolux reported a 4.6% revenue growth in Q3, driven by North America's expansion and increased market share in the three main regions. The operating margin expanded to 2.8%, with a cost reduction of SEK 2.8 billion year-to-date. The earnings per share (EPS) came in at 0.71, below analysts' estimates of 1.4. The revenue growth was attributed to increased penetration in shop floor spaces and key channels in North America, as well as strong results in Latin America.

Publication Date: Nov -19

📋 Highlights
  • Growth Drivers:: 4.6% sales growth driven by North America expansion and increased market share in three key regions, with Latin America showing strong results despite seasonal weather impacts.
  • Cost Efficiency:: SEK 2.8 billion cost reduction year-to-date, including SEK 760 million saved in Q3 and SEK 800 million added to the SEK 2 billion target for 2025 savings.
  • Margin Performance:: Operating margin of 2.8%, with organic sales growth contributing SEK 384 million and group common costs down SEK 50 million YoY.
  • Cash Flow Impact:: Operating cash flow fell to SEK 600 million due to higher working capital, with non-cash items adding a SEK 500 million negative delta in Q3.
  • Strategic Outlook:: SEK 3.5–4 billion cost savings target by 2025 through product redesign and sourcing, alongside organizational restructurings to boost North America competitiveness.

Regional Performance

The company's regional performance was mixed, with North America showing resilience in consumer demand, while Europe and Asia Pacific faced challenges due to geopolitical uncertainty and decreased consumer demand. Latin America saw consumer demand growth, but competitive pressure was high, especially in Argentina. According to Yannick Fierling, "We're making progress in North America, occupying new shop floor spaces by entering new retailers and expanding in channels like the contract channels."

Cost Efficiency and Cash Flow

The company's cost efficiency initiatives saved SEK 760 million, and the group common cost was SEK 50 million lower than the previous year. However, the operating cash flow was SEK 600 million, lower than the previous year due to increased working capital. Therese Friberg mentioned that the company's cash flow is being affected by the strong September sales, which have tied up a larger amount of receivables.

Valuation Metrics

Electrolux's current valuation metrics indicate that the stock is trading at a P/E Ratio of 107.68, EV/EBITDA of 5.25, and a Net Debt / EBITDA ratio of 3.64. The ROE is 1.54%, and the ROIC is 0.64%. These metrics suggest that the company's profitability is under pressure, and the stock's valuation is sensitive to improvements in earnings.

Outlook

The company's outlook remains neutral for core appliances in Europe and Asia Pacific, while North America is expected to continue its growth momentum. The company is confident in delivering the expected cost savings of SEK 3.5 billion to SEK 4 billion in 2025, driven by product redesign, better component sourcing, and higher efficiency in factories. Analysts estimate next year's revenue growth at 1.4%, indicating a moderate improvement in the company's top-line performance.

3. NewsRoom

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Electrolux Group hosts Capital Markets Update: Presents updated strategy and reconfirms financial targets, with focus on organic sales

Dec -04

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United States Washing Machine Market Trends & Forecast Report 2025-2033 Featuring Whirlpool, Samsung, LG, IFB, Panasonic, Haier, Godrej, General Electric, and Electrolux

Dec -03

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United States Kitchen Appliance Market Analysis Report 2025: Overviews, Key Persons, Recent Developments, SWOT Analysis, Revenue Analysis of Key Players

Dec -03

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Assessing AB Electrolux (OM:ELUX B) Valuation After Recent Share Price Momentum

Nov -13

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Electrolux Professional Group to acquire the assets of Royal Range - a US Cooking company

Nov -11

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Electrolux shares surge as North America pick-up drives strong third quarter profit

Oct -30

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Electrolux Group Interim report Q3 2025

Oct -30

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Invitation to Electrolux Group Capital Markets Update, December 4, 2025

Oct -22

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.23%)

6. Segments

Europe

Expected Growth: 3.5%

In Europe, AB Electrolux (publ) achieves 3.5% growth driven by increasing demand for energy-efficient appliances, rising consumer spending on premium products, and strategic partnerships with retailers to expand market share. Additionally, the company's focus on innovative product design and digitalization also contributes to its growth in the region.

North America

Expected Growth: 2.8%

In North America, AB Electrolux (publ) achieved 2.8% growth driven by increasing demand for premium appliances, particularly in the cooking and refrigeration segments. Strong brand recognition, innovative product offerings, and strategic partnerships with retailers contributed to the growth. Additionally, the company's focus on sustainability and energy-efficient products resonated with environmentally conscious consumers, further boosting sales.

Latin America

Expected Growth: 3.2%

In Latin America, AB Electrolux's 3.2% growth is driven by increasing middle-class disposable income, urbanization, and government initiatives promoting household electrification. Additionally, the company's focus on innovative and energy-efficient products resonates with environmentally conscious consumers, contributing to market share gains.

Asia-Pacific, Middle East and Africa

Expected Growth: 3.8%

In Asia-Pacific, growth is driven by increasing demand for premium appliances in China and Southeast Asia, while in the Middle East and Africa, growth is fueled by infrastructure development and rising consumer spending power, particularly in the Gulf Cooperation Council (GCC) countries.

7. Detailed Products

Refrigerators

Electrolux refrigerators are designed to keep your food fresh and your drinks cold, with advanced features like automatic ice makers and through-the-door ice dispensers.

Ovens and Cooktops

Electrolux ovens and cooktops offer advanced cooking technology, including induction cooking and precision temperature control, for perfect cooking results.

Dishwashers

Electrolux dishwashers are designed to make cleaning up after meals easy and efficient, with features like quiet operation and steam cleaning.

Washing Machines

Electrolux washing machines offer advanced cleaning technology, including high-efficiency washers and dryers, for clean and fresh laundry.

Vacuum Cleaners

Electrolux vacuum cleaners are designed to make cleaning floors and surfaces easy and efficient, with features like cordless operation and advanced filtration.

Air Conditioners

Electrolux air conditioners offer advanced cooling technology, including inverter technology and energy-efficient designs, for comfortable indoor climates.

Hoods and Cooker Hoods

Electrolux hoods and cooker hoods are designed to remove cooking fumes and odors from the air, with features like advanced filtration and quiet operation.

8. AB Electrolux (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for AB Electrolux is medium due to the presence of alternative products and services in the market. While the company's products are well-established, there are other options available to customers, which could potentially erode market share.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of customers and the ease with which they can switch to alternative products. This gives customers significant negotiating power, which could impact AB Electrolux's pricing and profitability.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large size and global presence. AB Electrolux has a significant amount of negotiating power, which allows it to secure favorable terms with its suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the significant barriers to entry in the industry. The high capital requirements, regulatory hurdles, and established brand recognition of incumbent players make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry. The market is highly competitive, with companies competing on price, quality, and innovation, which could lead to downward pressure on prices and profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.39%
Debt Cost 4.91%
Equity Weight 21.61%
Equity Cost 10.10%
WACC 6.03%
Leverage 362.74%

11. Quality Control: AB Electrolux (publ) passed 1 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

Stock-Card
De'Longhi

A-Score: 6.2/10

Value: 5.4

Growth: 5.7

Quality: 6.8

Yield: 6.9

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Howden Joinery

A-Score: 5.4/10

Value: 4.6

Growth: 5.7

Quality: 6.9

Yield: 4.4

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
CCC

A-Score: 3.9/10

Value: 5.0

Growth: 6.6

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
SEB

A-Score: 3.6/10

Value: 5.8

Growth: 3.3

Quality: 2.3

Yield: 6.9

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Volvo Car

A-Score: 3.1/10

Value: 7.3

Growth: 4.9

Quality: 3.3

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Electrolux

A-Score: 2.6/10

Value: 6.6

Growth: 1.9

Quality: 1.4

Yield: 3.8

Momentum: 0.0

Volatility: 2.0

1-Year Total Return ->

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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

60.54$

Current Price

60.54$

Potential

-0.00%

Expected Cash-Flows