• Operating income is the primary lever for cash generation.
  • Flexibility and data-driven decisions are vital to manage operating working capital as direct-to-consumer channels expand.
  • Investments level has normalized after a period 
of high investments in automation and new product architectures.
  • Focus on strengthening the balance sheet, targeting net debt/EBITDA below 2.0x to support organic growth.

Cash generation is a key strategic driver for strengthening 
Electrolux Group’s financial position and to support long-term growth and shareholder value creation. The primary lever is operating income improvement, complemented by initiatives in operating working capital and disciplined capital allocation.

 

Sustainability highlights

  • Access to sustainable finance – accounting for approximately 29% of the Group’s outstanding long-term borrowings, which include both bond loans and loans.
  • Investments in value creating sustainability initiatives.

Operating working capital has been gradually reduced following the disruptions of the COVID and post-COVID supply chain crises. The inventory ratio remains above pre-pandemic levels, reflecting mainly volatility in consumer demand in Europe and Latin America as well as timing effects related to U.S. tariffs. Going forward, enhanced flexibility and data driven decision making will be critical, particularly as the Group expands direct-to-consumer channels, requiring agile inventory management to secure consumer satisfaction, product availability and lifetime value creation. This underlines the importance of clear working capital accountability close to the markets.

Capital expenditure has normalized following a high investment cycle in global common product architectures and automation. From SEK 7.4bn in 2022, investments have gradually been reduced to 
SEK 4.6bn in 2024 and declined further to SEK 3.4bn in 2025. With a very modern product portfolio and architecture, investments are now focused on innovation, cost reduction projects, expansion in main channels and product categories, as well as sustainability and digitalization initiatives.

By driving cash generation, the aim is to strengthen the balance sheet, safeguard the investment grade rating and support organic growth. Over time, it is the Board’s objective that the net debt/EBITDA should not exceed 2.0x. This focus on earnings improvement, working capital discipline, and optimized capital allocation provides a solid platform for cash generation and long-term value creation.

The Group’s target is for the dividend to correspond to approximately 50% of the annual income. No dividend was paid for the financial year 2024. In 2025, net debt/EBITDA was at 3.0x, hence the Board of Directors has proposed to the Annual General Meeting that no payment of dividend shall be made for 2025.