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AB Electrolux (OM:ELUX B) just released fourth quarter 2025 results, with lower sales but higher net income, supported by cost efficiency gains, market share improvement, and new restructuring plans that could reshape its cost base.
See our latest analysis for AB Electrolux.
The SEK71.78 share price has reacted sharply to the earnings update, with a 1-day share price return of 14.59% and a 90-day share price return of 15.89%. However, the 1-year total shareholder return is a 28.93% loss, so recent momentum contrasts with longer term weakness.
If this earnings driven move has you rethinking your watchlist, it could be a good moment to broaden your search with auto manufacturers as another way to spot consumer-focused manufacturers.
With the share price jumping, analysts’ target sitting close by at SEK77, and intrinsic value estimates suggesting a larger discount, the real question is whether Electrolux is still mispriced or if the market is already baking in future growth.
With AB Electrolux closing at SEK71.78 against a most followed fair value of about SEK76.38, the current share price sits below that narrative anchor, putting the focus on what has to go right in the next few years.
The company’s accelerated cost efficiency program and substantial investments in automation and digitalization are expected to further enhance operational efficiency, supporting higher net margins and earnings resilience over time.
Curious what kind of margin lift and earnings profile sit behind that fair value number. The narrative leans on steadier top line, fatter margins, and a lower future P/E than many peers. Want to see how those moving parts fit together and what they imply for the share price path mapped out to the late 2020s.
Result: Fair Value of SEK76.38 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to factor in the risk that pricing pressure in Europe or weaker demand in Latin America could challenge the margin and earnings story.
Find out about the key risks to this AB Electrolux narrative.
If you look at the numbers and reach a different conclusion, or simply prefer to work from your own assumptions, you can build a tailored story in just a few minutes, starting with Do it your way.
A great starting point for your AB Electrolux research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
If Electrolux has sharpened your focus, do not stop here. Broaden your opportunity set with a few high quality stock ideas filtered by clear, simple criteria.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ELUX-B.ST.
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