Electrolux Professional AB (publ)

Q2 net sales fell 3.8% year over year, with weakness mainly in the U.S. and in Middle East/Africa/Asia due to postponed project invoicing. EBITDA margin was maintained; reported EPS increased to SEK 0.8 per share from SEK 0.75 per share, helped by lower funding costs and a lower tax rate of 25%. Gross margin and EBITDA benefited from SEK 25 million of cost savings in the quarter, while a SEK 21 million tariff refund supported profitability. Free cash flow/cash generation was positive but lower than last year, and net debt increased in the quarter due to roughly SEK 400 million of cash out, including SEK 270 million for dividend, about SEK 60 million for the final purchase price of Royal Range, and a similar amount for an MTN refund. For 2026, management reaffirmed SEK 80 million of cost savings and said the measures should help offset tariff, logistics and input-cost headwinds; they also expect some additional tariff refund in the second half.

Paolo Schira framed his early agenda as “accelerate and simplify,” meaning fewer priorities, more focus on core strengths, stronger commercial execution, and better customer proximity. He said investments will be funded by subtraction and supported by tighter portfolio and cost discipline. On the quarter, he called the picture mixed: sales were down, but profitability held up, order stock was healthy, and he emphasized that the business has momentum in Laundry, Japan (TOSEI), and in a growing pipeline of new products. He sounded constructive but execution-focused, repeatedly stressing that improving the top line is now a key priority.

Fabio Zarpellon said Q2 profit was hit by lower volumes, tariffs and higher logistics costs, but the company still maintained EBITDA margin. He noted currency translation reduced EBITDA by roughly SEK 10 million, while currency transaction was slightly positive, and the SEK 21 million tariff refund plus price increases offset higher tariff costs. He highlighted SEK 25 million in restructuring savings in Q2, confirmed SEK 80 million for the full year, and reiterated prior guidance of SEK 175 million in 2027, equal to about 1.4 margin points. He also pointed to a stronger balance sheet and said the increase in working capital was mainly temporary, driven by inventory tied to delayed project deliveries and receivables from longer-payment-term countries; he said he has no concern about receivable quality.

Analysts focused on whether tariff refunds will continue, with management saying an additional refund request has been submitted and that there could be more positive refund in the second half, but no magnitude was given. They also pressed on the U.S. Food & Beverage weakness; management said the market is not booming but remains positive, that the company has underperformed, and that several chain-rollout tests are ongoing which could convert into sales later in the year. On pricing and surcharges, management said more price actions are coming, mainly in Laundry and selectively in Food & Beverage, and does not expect a share-loss impact so far. Management also said Q2 improved sequentially through the quarter, with June stronger than the start, and that early customer feedback on upcoming Laundry and Food product launches is encouraging.