Electrolux Shares Surge After Beating Operating Income Forecast

Electrolux shares surged up to 11.5% on Friday following the release of third-quarter financial results that beat operating income and net sales forecasts. The company reported operating income excluding non-recurring items of 912 million Swedish crowns, surpassing the 867 million forecast, while net sales reached 33.92 billion crowns.

Despite the operating beat, the company posted a surprise net loss of 340 million Swedish crowns, missing the expected profit of 63.6 million crowns. This loss resulted from high income taxes and net financial costs. The company also faced headwinds from U.S. tariffs and rising raw material and logistics costs linked to the Middle East conflict, though it recovered roughly 1 billion crowns in tariff refunds.

Electrolux achieved 1.4 billion crowns in cost-efficiency gains during the period but downgraded its full-year outlook for volume, price, and mix contribution to neutral. To offset these challenges, the company raised its annual cost-efficiency target to approximately 4 billion crowns. Non-recurring charges included 151 million crowns for a factory closure in Argentina and 154 million crowns related to its North American partner, Midea Group.