Electrolux Professional (EPRO) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 reached SEK 3,073m, up 0.6% year-over-year, with organic sales down 0.4% and the Adventys acquisition contributing 0.7%.

• EBITA increased to SEK 363m (11.8% margin), up from SEK 326m (10.7%) in Q1 2024, reflecting improved profitability despite flat sales.

• Operating cash flow after investments was SEK 175m, slightly down from SEK 183m last year, as investments in new Laundry product lines continued.

• Strong order intake in Food & Beverage, while Laundry order intake was lower compared to a strong prior year.

• US tariffs announced in April create uncertainty, but impact is expected to be limited in 2025 after mitigation.

Financial highlights

• EBITDA margin approached 12%, driven by price execution, lower material costs, and improved mix in Laundry.

• EBITA margin rose to 11.8% (Q1 2024: 10.7%), with operating income at SEK 306m (9.9% margin, up from 8.9%).

• Earnings per share increased to SEK 0.69 from SEK 0.60 year-over-year.

• Net debt/EBITDA improved to 1.3x, reflecting higher EBITDA and reduced borrowing.

• Operating working capital as a percentage of net sales improved to 16.1% from 17.7%.

Outlook and guidance

• CapEx is expected to remain above historical levels due to innovation projects but should not materially affect cash generation.

• Tax rate guidance for the year is around 26%, after a Q1 peak of 30% due to one-off costs.

• Management expects limited impact from new US tariffs in 2025 after mitigation, but visibility on future market development is low.