Electrolux booked refunds on one set of American tariffs and raised its prices by up to 20 percent because of another
Two American tariff regimes, one set of books, opposite signs.
Electrolux Group published its second-quarter report in Stockholm on Wednesday morning, and its North American business carries both. Operating income excluding non-recurring items was SEK 1,202m against SEK 797m a year earlier, lifting the margin on that measure to 3.8 percent from 2.5 percent. Inside the North American contribution is USD 34m, which the company gives as SEK 310m, recognised for refund claims of IEEPA tariffs relating to the first quarter of 2026. A second tranche, described as approved claims for refunds of US IEEPA tariffs relating to 2025, sits in a different place entirely: inside the non-recurring items.
Those items were negative SEK 2.2bn in total, driven by the previously announced restructuring connected to the strategic partnership with Midea Group in North America and to global organisation and footprint changes. Reported operating income was therefore negative SEK 1,005m, a margin of minus 3.2 percent, against a positive SEK 797m a year earlier. Income for the period was negative SEK 1,641m, against a positive SEK 178m, and earnings per share were negative SEK 3.16 against SEK 0.36.
The cost side
The company attributes rising cost pressure to the newly extended US Section 232 import tariffs, effective from April 6 and, it says, now also applicable to Mexico. It says these increased cost pressure across the industry and hit earnings in the second half of the quarter, and that the pressure prompted widespread industry pricing actions.
Electrolux says it led those increases. Chief executive Yannick Fierling's comment in the report states that the company implemented price adjustments during the quarter of between 5 and 20 percent depending on product category, compensating for part of the increased cost pressure from tariffs. Part, not all.
The rest of the quarter
Net sales were SEK 31,569m against SEK 31,276m, with organic sales growth of 2.0 percent against 1.8 percent. Europe, Middle East and Africa with Asia Pacific, and Latin America, each grew organic sales by more than 4 percent. North America declined, which the company says was broadly in line with an estimated market contraction of about 3 percent. Group cost efficiency measures contributed SEK 1.4bn to operating income, and North America took a further SEK 174m benefit from changes to the US traditional retiree group health plan.
Operating cash flow after investments was SEK 1,607m, against negative SEK 741m a year earlier. The rights issue of approximately SEK 9.1bn completed at the end of June. Across the first six months, net sales were SEK 61,113m against SEK 63,852m, a fall of 4 percent, while operating income excluding non-recurring items rose 12 percent to SEK 1,400m.
