Electrolux rallies in Stockholm with Q4 much better than expected

(Il Sole 24 Ore Radiocor) - Electrolux is flying on the Stockholm Stock Exchange, thanks to a much better-than-expected fourth-quarter profit in 2025 on the back of strong sales and cost reductions. According to traders at current levels, the appliance manufacturer's stock is on track to post its best stock market performance since 2007.

Electrolux, which is in the midst of restructuring, posted an operating profit of SEK 1.52 billion (around EUR 144 million) in the fourth quarter, up 44%, while analysts had forecast SEK 1.18 billion. Profit for the period jumped to 466 million from 150 million. Sales declined by eight per cent on a historical basis to 35.1 billion kronor, but increased by two per cent on an organic basis. SB1 Markets analysts note that results exceeded expectations, particularly in Europe and Latin America, while North America fell short of expectations. The year 2025 ended with a turnover of 131.3 billion kronor (-4%), an operating profit of 3.7 billion (from 1.1 billion) and a net profit of 878 million against a loss of 1.4 billion in 2024. "High sales volumes and a positive mix contributed favourably to profits. Cost-saving measures had a positive impact of DKK 4 billion,' the company pointed out. However, the board decided not to propose a dividend.

Regarding the market environment in 2026, CEO Yannick Fleming said that demand in North America is expected to be neutral to negative, reflecting continuedgeo-economic uncertainty and because of the current tariffs structure, which may have a negative impact on demand. In Europe, demand is expected to be neutral, with signs of recovery thanks to lower inflation and interest rates, but in the context of weak demand due to geopolitical uncertainty. Overall, the group, which has a strong manufacturing presence in Italy, "expects external factors to be significantly negative, particularly due to rising costs from tariffs. The impact from currencies and raw materials is expected to be neutral overall," said the CEO, adding that cost-saving and efficiency measures "are critical to the competitiveness" of the group, which expects "a profit contribution of 3.5-4 billion from cost efficiency" in 2026. Electrolux is also aiming to increase capital expenditure this year. In a meeting with analysts, the Electrolux CFO further stated that 'if the industry reacts rationally, we will see price increases in the US in the coming weeks'. However, the Electrolux group, with its strong overseas manufacturing presence, should 'benefit from its status as a North American manufacturer'.