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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 Posts Mixed Q4 Results Amidst Tariff Pressures

Electrolux reported organic sales growth of 3.9% in 2025, with revenues reaching SEK 131 billion. However, the company's operating income margin was 2.8%, an improvement of 0.8 points versus last year. The actual EPS came out at '1.69', below estimates of '2.08'. The company's cash flow was robust, delivering SEK 5.2 billion in the fourth quarter, bringing the entire year to SEK 2 billion. As Yannick Fierling noted, "We had one of the strongest quarters ever in Electrolux in terms of cash flow."

Publication Date: Feb -22

📋 Highlights
  • Organic Sales Growth: Achieved 3.9% growth, reaching SEK 131 billion in Q4 2025.
  • Operating Income Improvement: Increased to 2.8% of net sales (SEK 3.7 billion), up 0.8 percentage points YoY.
  • Record Cash Flow: Generated SEK 5.2 billion in Q4, with annual cash flow hitting SEK 2 billion, reducing leverage to 3.0x.
  • Cost Efficiency Target Met: Achieved SEK 4 billion in cost reductions in 2025 through a cross-functional program.
  • Sustainability Progress: Reduced Scope 1&2 emissions by 45%, Scope 3 by 33%, and incorporated 23% recycled materials in products.

Regional Performance

The company gained market share in Europe, Asia Pacific, Middle East, and Africa, and Brazil. Europe grew organically by 3.6% in the quarter, despite a 1% decline in the overall market. However, the company faced challenges in North America due to U.S. tariffs and currency fluctuations, with dollar depreciation affecting the numbers.

Cost Efficiency and Profitability

Electrolux achieved its target of SEK 4 billion in cost reduction in 2025, driven by a cost excellence program implemented in 2023. The company expects to continue leveraging this approach moving forward. However, external factors, including tariffs, are expected to have a significantly negative impact in 2026.

Outlook and Valuation

Electrolux expects market demand to be neutral in 2026, with signs of recovery due to low inflation and interest rates. The company anticipates positive volume, price, and mix growth in 2026, driven by volume growth and growth in focus categories. With a P/E Ratio of 23.81 and an EV/EBITDA of 5.42, the market is pricing in a certain level of growth. The Net Debt / EBITDA ratio stands at 3.25, indicating a relatively high level of leverage.

Challenges Ahead

The company faces challenges in North America due to geoeconomic uncertainty and the tariff structure. Price pressure is expected to continue in Europe, mainly on the low-end segment and entry price point segment. However, Electrolux is defending its value in the core plus and premium segment.

3. NewsRoom

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AB Electrolux publishes 2025 Annual Report

Feb -19

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Electrolux Reshapes Product Organization As Share Price Recovery Draws Focus

Feb -17

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Is American Public Education (APEI) Outperforming Other Consumer Discretionary Stocks This Year?

Feb -16

Source: zacks.com

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Notice convening the Annual General Meeting of AB Electrolux

Feb -13

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Electrolux (ELUXY) Upgraded to Strong Buy: Here's What You Should Know

Feb -02

Source:

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Why AB Electrolux (OM:ELUX B) Is Up 10.4% After Q4 Profit Rebound And Restructuring Push

Feb -01

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Assessing Electrolux (OM:ELUX B) Valuation After Earnings Jump And Restructuring Plans

Feb -01

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Electrolux AB (ELRXF) Q4 2025 Earnings Call Highlights: Strong Cash Flow and Market Gains ...

Jan -30

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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: 5.6/10

Value: 4.2

Growth: 5.7

Quality: 6.8

Yield: 6.2

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

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Howden Joinery

A-Score: 5.6/10

Value: 4.6

Growth: 5.7

Quality: 7.1

Yield: 5.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Volvo Car

A-Score: 4.1/10

Value: 7.1

Growth: 4.9

Quality: 3.3

Yield: 0.0

Momentum: 8.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
SEB

A-Score: 3.7/10

Value: 5.9

Growth: 3.3

Quality: 2.3

Yield: 6.9

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
CCC

A-Score: 3.5/10

Value: 5.8

Growth: 6.6

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Electrolux

A-Score: 3.0/10

Value: 7.1

Growth: 1.9

Quality: 2.9

Yield: 3.1

Momentum: 1.0

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

75.9$

Current Price

75.9$

Potential

-0.00%

Expected Cash-Flows