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Electrolux AB (SE:ELUX.B)
:ELUX.B
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Electrolux AB (ELUX.B) AI Stock Analysis

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SE:ELUX.B

Electrolux AB

(OTC:ELUX.B)

Rating:42Neutral
Price Target:
kr58.00
▼(-5.26% Downside)
Electrolux AB's overall stock score is primarily impacted by its weak financial performance and technical indicators. Despite some positive developments from the earnings call, such as improved margins and cost efficiencies, the company's high leverage, negative cash flow, and overvaluation present significant risks. The bearish technical trend further underscores the challenges faced by the stock.

Electrolux AB (ELUX.B) vs. iShares MSCI Sweden ETF (EWD)

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 AB generates revenue primarily through the sale of household appliances such as refrigerators, washing machines, ovens, and vacuum cleaners. The company's revenue model is driven by both direct sales to consumers and partnerships with retail distributors worldwide. Key revenue streams include the sale of major appliances, small appliances, and professional appliances for commercial use, each contributing to a significant portion of total income. Additionally, Electrolux invests in research and development to introduce new technologies and products that meet consumer demands while adhering to sustainability standards. Strategic partnerships with retailers and e-commerce platforms further enhance distribution channels, driving sales growth. Furthermore, Electrolux benefits from an after-sales service model, providing maintenance and spare parts, which also contributes to recurring revenue.

Electrolux AB Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: -14.85%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of achievements and challenges. While there were significant improvements in operating margin, organic growth, and product launches, the company faced considerable challenges with the European market, cash flow issues, and external factors like tariffs and currency headwinds.
Q2-2025 Updates
Positive Updates
Improved Operating Margin
The operating margin improved from 1.2% to 2.5%, with a positive operating margin in North America.
Organic Growth Achieved
Reported an organic growth of 1.8%, mainly driven by North America and Latin America.
Cost Efficiency Progress
Achieved cost efficiency of SEK 0.6 billion in Q2, totaling SEK 2 billion for the first half of the year.
Successful Product Launches
Launched a new induction hob and a pizza oven in North America, which received positive market reception.
Sustainability Recognition
Awarded by Financial Times, Newsweek, and received a gold medal from EcoVadis, ranking among the top 5% most sustainable companies globally.
Negative Updates
European Market Challenges
The market in Europe was depressed with a decline of over 1% and 11% lower than 2019 in terms of volume.
Negative Cash Flow
Experienced a negative operating cash flow after investments of SEK 741 million in the quarter.
Tariff and Currency Headwinds
Faced headwinds from tariffs and negative currency impacts, particularly in North America and Latin America.
Antitrust Fine in France
Paid an antitrust fine of approximately SEK 500 million in France.
Company Guidance
During the second quarter of fiscal year 2025, Electrolux reported several key metrics and guidance. The company's operating margin improved from 1.2% to 2.5%, driven by positive performance in North America, where organic growth was 4.1%. Despite a challenging geopolitical environment, the company achieved a SEK 0.6 billion year-over-year cost efficiency, contributing to a total of SEK 2 billion for the first half of the year. Organic growth was 1.8%, with positive contributions from North America and Latin America, though there was a slight decline in Europe, Asia Pacific, Middle East, and Africa. The sale of the Kelvinator brand in India for SEK 180 million was also noted. Looking ahead, Electrolux aims to achieve SEK 3.5 billion to SEK 4 billion in cost efficiencies by the end of 2025, while continuing to navigate currency headwinds and tariff impacts, especially in North America, through strategic price increases. The company maintained a neutral market outlook for Europe and Latin America, while noting uncertainties in North American demand due to inflation and tariffs.

Electrolux AB Financial Statement Overview

Summary
Electrolux AB is facing a challenging financial landscape with modest revenue growth and profitability under strain. The company shows operational efficiency with strong gross margins and positive operating cash flow, but high leverage and negative net income indicate financial instability.
Income Statement
55
Neutral
Electrolux AB's income statement reflects a challenging financial period. The TTM (Trailing-Twelve-Months) data shows a slight revenue growth of 1.10%. However, profitability remains under pressure with a negative net profit margin of -0.09% and an improving yet still modest EBIT margin of 1.54%. The gross profit margin is fairly strong at 15.64%, indicating cost management efficiency despite the net losses reported in recent years. The company is on a recovery path with EBITDA margin improving to 6.12% from previous periods.
Balance Sheet
45
Neutral
The balance sheet of Electrolux AB shows some concerns regarding financial stability. The debt-to-equity ratio is high at 5.17, indicating significant leverage which may pose risks under adverse conditions. The equity ratio stands at 7.19%, reflecting a relatively low proportion of equity financing. Return on equity is negative, aligning with the net losses. These metrics suggest a need for careful financial management to enhance equity and reduce debt reliance.
Cash Flow
60
Neutral
Electrolux AB demonstrates resilience in cash flow management, despite net losses. The operating cash flow to net income ratio is favorable at -27.77, indicating strong cash generation relative to net income losses. Free cash flow remains negative, but the free cash flow to net income ratio shows improvement over prior years. While free cash flow growth is negative, high operating cash flow is a positive sign for liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue135.11B136.15B134.45B134.88B125.63B115.96B
Gross Profit21.60B20.30B17.14B17.70B23.98B22.27B
EBITDA8.75B7.67B3.22B5.29B11.31B10.42B
Net Income135.00M-1.39B-5.23B-1.32B4.68B3.99B
Balance Sheet
Total Assets113.62B125.39B120.05B127.10B107.61B99.60B
Cash, Cash Equivalents and Short-Term Investments10.68B16.34B15.50B17.73B11.09B20.37B
Total Debt42.40B43.63B40.87B41.38B18.82B18.07B
Total Liabilities105.52B115.67B108.78B110.65B89.00B80.89B
Stockholders Equity8.09B9.72B11.27B16.44B18.60B18.70B
Cash Flow
Free Cash Flow-3.02B-451.00M-1.70B-9.66B1.02B6.59B
Operating Cash Flow892.00M4.20B4.00B-2.27B7.06B11.93B
Investing Cash Flow-3.05B-4.28B-4.36B-6.96B-6.82B-5.12B
Financing Cash Flow-1.61B1.27B-1.55B15.60B-9.79B2.02B

Electrolux AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price61.22
Price Trends
50DMA
64.70
Negative
100DMA
65.60
Negative
200DMA
78.98
Negative
Market Momentum
MACD
-1.18
Negative
RSI
49.48
Neutral
STOCH
64.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ELUX.B, the sentiment is Neutral. The current price of 61.22 is above the 20-day moving average (MA) of 59.89, below the 50-day MA of 64.70, and below the 200-day MA of 78.98, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 64.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:ELUX.B.

Electrolux AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.16B12.39-5.32%3.05%1.51%-15.30%
56
Neutral
kr17.78B
2.39%-14.48%-311.20%
42
Neutral
$16.22B122.731.52%0.86%
$1.12B81.9425.72%1.41%
€973.99M16.8513.75%
€1.10B21.9813.24%
€1.28B16.9013.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ELUX.B
Electrolux AB
61.22
-38.36
-38.52%
SE:DOM
Dometic Group AB
58.20
-10.16
-14.86%
MPZAF
MIPS AB
43.04
-4.95
-10.31%
DE:BHJC
Bilia AB Class A
10.39
-0.18
-1.70%
DE:3AJ
SkiStar AB Class B
13.67
-0.33
-2.36%
DE:NWG0
New Wave Group AB Class B
9.57
0.22
2.35%

Electrolux AB Corporate Events

Electrolux AB Reports Improved Q2 2025 Performance Amid Market Challenges
Jul 18, 2025

Electrolux AB reported a slight organic sales growth of 1.8% in Q2 2025, driven by positive performance in North and Latin America, despite a decline in other regions. The company’s operating income improved significantly due to positive contributions from North America and strategic divestments, although operating cash flow was negatively impacted by increased working capital and a French antitrust fine. The company remains focused on its strategic priorities, including cost efficiency and consumer-centric innovations, amid challenging market conditions.

The most recent analyst rating on ($SE:ELUX.B) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Electrolux AB stock, see the SE:ELUX.B Stock Forecast page.

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.Date of analysis: Aug 11, 2025