Electrolux adjusted profit rises to 912 million kronor as company posts net loss

Key Facts

Electrolux's operating profit excluding non-recurring items rose to 912 million Swedish kronor in the third quarter of 2026 from 890 million in the same period a year earlier, according to the company's earnings report. The increase in adjusted profit was accompanied by a decline in its margin to 2.7% from 2.8% a year earlier, as profit rose in absolute terms but fell as a share of sales. Reported operating profit, which includes non-recurring items, fell to 607 million kronor from 890 million in the corresponding quarter. On the bottom line, the company swung to a net loss of 340 million kronor from a profit of 192 million a year earlier. The results came as quarterly net sales rose to 33,919 million kronor from 32,318 million in the third quarter of 2025.

Organic sales growth in the third quarter was 3.5%, compared with 4.6% in the corresponding period a year earlier, according to the company, as sales continued to grow at a slower pace. On costs, efficiency measures contributed 1.4 billion kronor to operating profit during the period, while the company faced higher production input and transport costs. Electrolux attributed the increase in raw material and logistics costs to the Middle East conflict, which added to its operating costs during the quarter. The company had said in its second-quarter report that it raised prices in North America by between 5% and 20%, depending on the product category. It said those increases aimed to offset some of the pressure from tariffs, providing the backdrop to its pricing policy ahead of the third-quarter results and the revision to its annual outlook.

The latest results follow a second quarter that saw year-on-year improvements in both adjusted operating profit and its margin, according to Electrolux's previous report. Operating profit excluding non-recurring items stood at 1,202 million kronor then, compared with 797 million in the second quarter of 2025. The margin was 3.8%, compared with 2.5% in the corresponding period, while both profit and its margin in the third quarter were below their levels in the preceding quarter. In the market reaction to the second-quarter results, Electrolux's Class B shares rose more than 21% during the July 29, 2026 session, according to Investing.com. That rally was linked to the second-quarter earnings announcement, which showed higher adjusted profit and a wider margin year on year.

Meanwhile, the third-quarter results showed an improvement in operating cash flow after investments, which reached 3,608 million Swedish kronor, according to Electrolux's disclosure. This compared with 624 million kronor in the same quarter a year earlier, marking an increase despite the swing to a net loss. The ratio of net debt to earnings before interest, taxes, depreciation and amortisation also improved to 2.2 times at the end of the third quarter of the current year. That compared with 3.5 times at the end of the corresponding period last year, reflecting lower leverage by this measure. Against the backdrop of the balance-sheet improvement, the company had announced in its previous report the completion of a rights issue of about 9.1 billion kronor by the end of June, saying the issue had been "successfully completed".

For 2026, Electrolux lowered its outlook for the contribution of volume, price and mix to operating profit, having previously expected a positive combined contribution from these factors. The company now describes the expected contribution as "neutral", according to its third-quarter report, alongside a revision to its expectations for efficiency gains. It put the expected full-year contribution from cost-efficiency measures at about 4.0 billion kronor, keeping these measures among the factors it is counting on to support operating profit. On production plans, Electrolux had forecast, as part of its partnership announcement with Midea in April, that production of laundry appliances at the Anderson plant would begin in the first half of 2027. The company is scheduled to publish its 2026 full-year earnings report on January 29, 2027, according to its announced investor relations calendar.