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Electrolux AB Class B (ELUXY)
OTHER OTC:ELUXY
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Electrolux AB
(OTC:ELUXY)
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Rating:52Neutral
Price Target:
$13.00
▼(-1.44% Downside)
Action:ReiteratedDate:02/01/26
The score is held back primarily by weak financial quality—high leverage and pressured cash flow despite a modest profit rebound. Technicals are a clear positive with strong upward trend and momentum, while valuation appears only moderate (P/E ~23.8) given the still-fragile recovery. Earnings-call guidance is mixed: strong cost-efficiency execution and liquidity, but significant tariff and pricing headwinds for 2026.
Positive Factors
Organic Sales Growth
Hitting near the mid‑term ~4% organic growth target indicates sustainable demand and better product/market fit. Persistent organic growth supports revenue resilience, enables scale benefits, and underpins medium‑term margin recovery if maintained across cycles.
Sustained Cost Efficiency
Achieving the upper end of cost‑savings targets via procurement, value engineering and conversion shows structural productivity gains. Repeatable SEK 3.5–4.0bn targets improve operating leverage, help protect margins under pricing pressure and free cash for strategic investment.
Improved Liquidity & Capital Actions
Marked improvement in leverage and a large liquidity buffer demonstrate stronger short‑term resilience to shocks and reduce near‑term refinancing risk. Amortization of borrowings and active funding (EIB draw) show management focus on stabilizing capital structure.
Negative Factors
High Leverage
Very high leverage sharply reduces financial flexibility and increases exposure to earnings volatility. With a thinner equity cushion, weaker profits or further cash pressure could force asset sales, divestitures, or costly refinancing, constraining strategic optionality.
Weak Cash Generation
Material decline in operating cash flow and persistent negative FCF limit the firm's ability to deleverage organically, fund higher capex, or absorb shocks. Reliance on external funding raises refinancing and interest risks, especially around upcoming maturities.
Structural Tariff & Pricing Headwinds
Large tariff exposure and sustained promotional pricing compress margins and are hard to fully pass through in competitive markets. Such structural cost shocks, especially in North America, can erode realized prices and profitability over multiple quarters.
Electrolux AB (ELUXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.74B
Dividend YieldN/A
Average Volume (3M)12.00
Price to Earnings (P/E)9.2
Beta (1Y)0.99
Revenue Growth4.10%
EPS GrowthN/A
CountryUS
Employees41,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.39
Shares Outstanding137,442,800
10 Day Avg. Volume0
30 Day Avg. Volume12
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)1.97
Price to Sales (P/S)0.13
P/FCF Ratio-16.24
Enterprise Value/Market Cap26.58
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit2.15
Enterprise Value/Ebitda5.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.84
Revenue Forecast (FY)$14.51B
Electrolux AB Business Overview & Revenue Model
Company DescriptionAB 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.
How the Company Makes MoneyElectrolux primarily makes money by selling appliances and related products to end customers and professional users through a mix of retailers, distributors, builders/contractors, and direct channels (including e-commerce where applicable). Its main revenue stream is product sales across major appliance categories (kitchen and laundry) and, where offered, professional equipment for commercial customers (e.g., foodservice and professional laundry). In addition to upfront product revenue, Electrolux earns revenue from aftermarket activities tied to its installed base, including spare parts, accessories, maintenance, and repair/service offerings (often delivered via authorized service networks). Profitability is influenced by product mix (premium vs. mass-market), pricing and promotional intensity with large retailers, manufacturing scale and productivity, input costs (materials/components), logistics, and foreign-exchange movements due to its global footprint. Information on specific partnerships and the quantitative breakdown of revenue by stream is null.
Electrolux AB Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Neutral
The call highlighted clear operational progress — organic growth near target, improved operating margin, SEK 4 billion cost savings achieved and a very strong Q4 cash flow — alongside substantive strategic and sustainability advances. However, the company faces meaningful external headwinds (tariffs, currency and sustained promotional pressure), a difficult North American quarter with negative Q4 EBIT, ongoing price pressure in several regions, and a still-elevated net debt position. Management has reiterated cost-savings targets and organisational changes to offset these challenges, but uncertainty remains about the pace of industry pricing adjustments and tariff passthrough.Q4-2025 Updates
Positive Updates
Organic Sales Growth Near Target
Organic sales of SEK 131 billion, representing organic sales growth of 3.9% (close to the midterm 4% target).
Improved Operating Income and Margin
Operating income of SEK 3.7 billion, equal to 2.8% of net sales, an improvement of 0.8 percentage points versus prior year.
Achievement of Cost Reduction Target
Delivered SEK 4.0 billion in cost reductions (upper end of guided SEK 3.5–4.0 billion) driven by procurement, value engineering and conversion efficiencies; guidance for SEK 3.5–4.0 billion again in 2026.
Very Strong Q4 Cash Flow
Operating cash flow in Q4 of SEK 5.2 billion, bringing full-year operating cash flow to SEK 2 billion and supporting liquidity (SEK 32.7 billion including revolver).
Market Share Gains and Regional Strengths
Gained market share in Europe, Asia Pacific, Middle East & Africa and Brazil; flat market share in North America. Europe APACMEA region grew organically 3.6% in Q4 while the market declined 1%.
Sustainability and Product Innovation Progress
Progress on sustainability targets: reported 45% (toward declared 85% Scope 1 & 2 reduction target), Scope 3 progress 33%, 23% recycled material in products (target 35%), incident rate ~0.33. Launched product innovations (new oven pizza feature, new kitchen lines, new dishwasher) supported by increased marketing.
Improved Leverage and Capital Structure Actions
Net debt/EBITDA improved to ~3.0x; amortized ~SEK 2 billion long-term borrowing in Q4 and drew down EIB loan USD 230 million; full-year CapEx expected to increase to ~SEK 4 billion in 2026 while maintaining solid liquidity and no financial covenants.
Negative Updates
North America: Promotional Pressure and Negative Q4 EBIT
High promotional activity and competitive pressure forced rollback of earlier price increases, contributing to a negative EBIT in Q4. Significant tariff exposure (15–20% for SE Asia, 55–60% for China) and U.S. dollar depreciation weighed on results.
Significant External Headwinds (Tariffs & Currency)
External factors were a major drag in Q4 with the majority of the impact concentrated in North America (management referenced significant tariff-driven and FX headwinds). External factors expected to be 'significantly negative' for 2026, mainly due to tariffs.
European Market Weakness
European market volumes remain subdued: market down ~1% in Q4 and ~10% below Q4 2019 (described as a 10-year low); Western Europe down ~1%, representing >80% of volume and keeping demand weak.
Ongoing Price Pressure Across Regions
Price pressure noted in Europe, APAC and Latin America, driven by new low-end entrants and promotional activity; overall guidance indicates price development may be negative and will partially offset volume/mix gains in 2026.
Temporary Boost in LatAm Earnings from Supplier Rebate
Latin America performance was strong but partly supported by a one-time supplier rebate in Q4 (management said relevant for the region though not material for the group), which inflated the quarter's EBIT impact in the region.
High Net Debt Level and Upcoming Maturities
Although leverage improved to ~3.0x, net debt remains relatively high and a notable maturity (SEK 5.5 billion) is due in October 2026, prompting continued attention to capital structure.
Uncertainty Around Raw Materials and Pricing Pass-Through
While management expects currency and raw material impact to be 'relatively neutral' in 2026 given hedging, steel/upstream cost pressure (notably in North America due to tariffs) and uncertain passthrough of tariffs into market prices create risk.
Group Cost Phasing and Potential Increase
Group common costs were lower in 2025 partly due to timing; management indicated these were 'on the low side' and signaled that 2026 costs may be higher, reducing some near-term margin flexibility.
Company Guidance
Guidance for 2026: Electrolux expects market demand to be roughly neutral in Europe, neutral–to–negative in North America and neutral in Latin America, with volume, price & mix overall expected to be positive (driven by focus categories) but partly offset by negative price development; management anticipates SEK 3.5–4.0 billion in cost‑efficiency contributions, full‑year capex of about SEK 4 billion, increased investment in innovation and marketing to support new launches, and external factors to be “significantly negative” mainly from tariffs (cited import duties ~15–20% from SE Asia and ~55–60% from China), while currency and raw‑material effects are expected to be relatively neutral; balance‑sheet metrics to note include year‑end liquidity (incl. RCF) SEK 32.7 billion, an October 2026 maturity of SEK 5.5 billion and net debt/EBITDA ~3.0x, and management reiterates a mid‑ to‑long‑term organic growth target of about 4%.Electrolux AB Financial Statement Overview
Summary
Earnings are rebounding (2025 back to a small profit with improved EBIT/EBITDA margins), but the recovery looks fragile: revenue is slightly down, leverage is very high (debt-to-equity ~5.0), and cash generation is weak with negative free cash flow and sharply lower operating cash flow versus 2024—limiting flexibility to deleverage.Income Statement
Profitability has improved meaningfully versus the prior two years, with 2025 returning to a small profit (net margin ~0.7%) and higher operating profitability (EBIT margin ~2.6%, EBITDA margin ~6.7%) versus 2024. However, revenue has been slightly declining recently (2025 revenue down ~1.8%), and margins are still far below the 2020–2021 level (net margin ~3–4% historically), suggesting the recovery is not yet fully durable.48
Neutral
Balance Sheet
Leverage is the key weakness. Total debt remains very high relative to equity, with debt-to-equity rising to ~5.0 in 2025 (up from ~4.5 in 2024 and well above ~1.0 in 2020–2021), reflecting a much thinner equity cushion. While 2025 shows a return to positive return on equity (~10%), the balance sheet has less flexibility than earlier years and is more exposed if earnings soften again.34
Negative
Cash Flow
Cash generation is mixed and recently pressured. Operating cash flow fell sharply in 2025 (~1.1B vs ~4.2B in 2024), and free cash flow remained negative in both 2024 and 2025 (with 2025 more negative), indicating weaker cash conversion and ongoing funding needs. The company did generate strong cash flow in 2020–2021, but the last several years show inconsistent cash performance and limited capacity to deleverage through internally generated cash.27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 131.28B | 136.15B | 134.45B | 134.88B | 125.63B |
| Gross Profit | 21.70B | 20.30B | 17.14B | 17.70B | 23.98B |
| EBITDA | 9.34B | 7.67B | 3.22B | 5.29B | 11.15B |
| Net Income | 825.31M | -1.39B | -5.23B | -1.32B | 4.68B |
Balance Sheet | |||||
| Total Assets | 114.63B | 125.39B | 120.05B | 127.10B | 107.61B |
| Cash, Cash Equivalents and Short-Term Investments | 15.82B | 16.34B | 15.50B | 17.73B | 11.09B |
| Total Debt | 43.50B | 43.63B | 40.87B | 41.38B | 18.82B |
| Total Liabilities | 105.92B | 115.67B | 108.78B | 110.65B | 89.00B |
| Stockholders Equity | 8.70B | 9.72B | 11.27B | 16.44B | 18.60B |
Cash Flow | |||||
| Free Cash Flow | -1.05B | -451.00M | -1.70B | -9.66B | 1.02B |
| Operating Cash Flow | 1.12B | 4.20B | 4.00B | -2.27B | 7.06B |
| Investing Cash Flow | -2.52B | -4.28B | -4.36B | -6.96B | -6.82B |
| Financing Cash Flow | 1.83B | 1.27B | -1.55B | 15.60B | -9.79B |
Electrolux AB Technical Analysis
Negative
13.19
Price Trends
15.69
Negative
14.18
Negative
13.38
Negative
Market Momentum
-0.79
Positive
29.12
Positive
0.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELUXY, the sentiment is Negative. The current price of 13.19 is below the 20-day moving average (MA) of 15.84, below the 50-day MA of 15.69, and below the 200-day MA of 13.38, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 29.12 is Positive, neither overbought nor oversold. The STOCH value of 0.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELUXY.
Electrolux AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.13B | 22.49 | 30.07% | ― | 18.87% | 58.76% | |
70 Outperform | $212.81M | 2.98 | 15.70% | 2.99% | -6.24% | 24.18% | |
67 Neutral | $6.30B | 18.35 | 4.50% | ― | -0.82% | -23.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.29B | 11.21 | -1.98% | 4.16% | 4.34% | -141.36% | |
52 Neutral | $1.74B | 9.18 | 10.45% | ― | 4.10% | ― | |
47 Neutral | $3.25B | 9.33 | 12.72% | 7.40% | -11.36% | -133.01% |
* Consumer Cyclical Sector Average
ELUXY
Electrolux AB
12.90
-5.05
-28.14%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.