Electrolux Group increased sales in the third quarter of 2026, but rising external costs and restructuring charges continued to put pressure on profitability as the appliance manufacturer pursued its global efficiency programme.
Net sales reached SEK 33.9 billion, up 5% from SEK 32.3 billion in the same period last year. Organic sales growth was 3.5%, supported by higher sales volumes in Europe, the Middle East and Africa, Asia-Pacific and Latin America, alongside positive pricing in North America.
Adjusted operating income rose to SEK 912 million from SEK 890 million a year earlier. However, the adjusted operating margin edged down to 2.7%, compared with 2.8% in the third quarter of 2025.
Rising costs offset efficiency savings
The group generated SEK 1.4 billion in operating income benefits from cost-efficiency initiatives during the quarter. These savings helped offset higher raw material and logistics costs, as well as the impact of US tariffs.
Reported operating income fell to SEK 607 million, including SEK 305 million in restructuring and other exceptional charges associated with the group’s organisational and manufacturing changes.
Electrolux recorded a net loss of SEK 340 million for the quarter, compared with a profit of SEK 192 million a year earlier.
Market conditions remain challenging
Consumer confidence and purchasing power continued to affect demand across key markets. In Europe, rising economic uncertainty and inflation weighed on consumer sentiment, while North American shoppers increasingly prioritised lower-priced products amid cost-of-living pressures.
Electrolux is continuing to reshape its North American operations through its strategic partnership with Midea Group. The associated joint ventures covering sales and manufacturing became operational during September and October.
The group also closed its Rosario factory in Argentina during the quarter. In Italy, discussions with trade unions and institutions are continuing as part of a wider manufacturing and organisational optimisation programme.
Cash flow improves
Despite the pressure on profitability, Electrolux reported a significant improvement in cash generation. Operating cash flow after investments increased to SEK 3.6 billion, compared with SEK 624 million in the third quarter of 2025, supported by improved working capital and US tariff refunds.
The group’s net debt-to-EBITDA ratio also improved to 2.2 times, from 3.5 times a year earlier.
Looking ahead, Electrolux expects the combined impact of sales volumes, pricing and product mix on operating income to be neutral for the full year, revising its previous positive outlook. The company now expects cost-efficiency measures to contribute approximately SEK 4 billion in 2026.
The results underline the challenge facing major appliance manufacturers: growing sales and delivering operational savings while managing persistent cost inflation, competitive pricing and uncertain consumer demand.
