Electrolux Group is tracking in the right direction under new management, with the owner of Westinghouse, AEG and Vintec in Australia reporting a lift in both revenues and profits in the June quarter.

Operating profit excluding non-recurring items rose US$124 million in the April-June period from a year earlier, beating analysts’ forecasts, with the business delivering organic sales growth of 2%.

The result is an early vindication for President and CEO Yannick Fierling, who took office on January 1, 2025, succeeding long-serving boss Jonas Samuelson.

Since his appointment Fierling has visited Australia, restructured several divisions, placed a heavy emphasis on R&D and cut deals with Chinese appliance giant Midea that will lower costs across the Group.

Electrolux President and CEO Yannick Fierling,

Regional Performance

Electrolux does not report Asia-Pacific as a standalone segment, with the Australian and New Zealand operations bundled into a combined EMEA APAC region alongside Europe, the Middle East and Africa.

EMEA APAC net sales came in at $2.01 billion in Q2, up 4% on the prior year, with organic growth of 4.5% driven by higher revenues.

Earnings for the region rose 40% to A$79 million at a 3.9% margin, and EMEA APAC is now the group’s biggest region, accounting for 43% of Q2 sales.

Full year 2025 regional sales were around A$8.4 billion.

Asia-Pacific consumer demand is estimated to have been largely unchanged year on year, with competitive pressure remaining high across markets, according to sources.

The big growth engine was Europe, where the Electrolux and AEG brands kept gaining value and volume share in built-in kitchen appliances despite industry volumes sitting at a more than 10-year low.

Transformation On Track

Fierling claims his transformation plan is on track, with the Midea partnership, global organisational and footprint initiatives, and completion of the roughly A$1.35 billion rights issue at the end of June the key strategic steps. Efficiency benefits are already coming through, he said.

According to management, cost discipline is Fierling’s core lever, with the Group looking to save tens of millions in 2026 via value engineering, sourcing changes and a review of all manufacturing operations, a move that could affect Australian product sourcing.

The plan also includes factory closures, workforce reductions and the end of production at the Jászberény plant in Hungary.

During the quarter, Electrolux also announced an expansion of its strategic partnership with Midea Group in the USA, a key growth market for the business, a move seen as part of a wider transformation programme designed to improve long-term competitiveness.

Outlook

Looking ahead, Electrolux said its outlook remains unchanged, with the company continuing to expect a broadly neutral market for the remainder of 2026.

However, it warned that geopolitical uncertainty, inflationary pressures and weaker consumer confidence could continue to weigh on demand.

Fierling said the group’s immediate priorities are to accelerate efficiency improvements, optimise its manufacturing footprint and complete the transformation of its US business while continuing to invest in its core brands.