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CEO Comment – Annual Report 2025

Annual and Sustainability Report 2025
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Another step in the right direction to meet the needs beyond tomorrow

This year we took further steps in strengthening Electrolux Professional Group. Our organic sales grew, and our underlying profitability improved, despite strong headwinds from currency effects and tariffs. We launched an efficiency program that not only supports our ongoing transformation but also moves us decisively toward our long-term profitability ambitions.

Major transformational projects

The progress we made in 2025 must be seen in the context of some of the changes that are taking place across the Group. We continued to invest in our new laundry platform and in horizontal cooking – two strategic pillars for our future. And with the efficiency program initiated in September, we are paving the way for significant savings in 2026 and 2027. This program includes streamlining of our manufacturing footprint by bringing production of our coffee machines and food preparation products together under one roof, and moving production of food products from Switzerland to Italy. These actions will strengthen profitability while improving our capabilities in sales, marketing, and digital.

We also took an important step in the US market with the acquisition of assets from Royal Range, a strategic extension of our cooking platform. At the same time, we are accelerating our digital agenda and laying the foundation for an AI ready business. These initiatives are not only investments in technology – they are investments in the future strength and competitiveness of Electrolux Professional Group.

A resilient business

Our industry benefits from powerful long-term global trends: urbanization, a growing middle-class, rising workforce participation, and increasing disposable income. These forces make us more resilient, even when the global environment is challenging.

2025 is a testament to this resilience. Despite a weak US Food & Beverage market in the second half, a soft Japanese market throughout the year, strong negative currency effects, and US tariffs, we continued to improve our financial performance. Having a resilient business also secures reliable delivery to customers even in tough conditions, helping them avoid disruptions.

New products meeting the needs beyond tomorrow

We move forward by continuing to create products that meet the needs beyond tomorrow. In Europe, we lead the field in horizontal cooking. With the launch of the e-XP range, Thermaline free zone induction, and a new multifunctional cooker, we are broadening and strengthening our cooking portfolio even further. Relocating production from Switzerland to Italy will enhance efficiency and unlock new synergies, reinforcing our competitiveness.

Our new laundry platform, launching in 2026, represents a major step forward. Designed as a unified modular system, it reduces energy, water, and detergent consumption while improving connectivity, sustainability, and customer productivity. It also opens doors to market segments where we are not yet present.

Sustainability leader – reaching 2030 targets already in 2025

Electrolux Professional Group is the sustainability leader in our industry, with ambitious goals for the climate, health & safety, and diversity. As a signatory of the UN Global Compact and aligned with the UN SDGs, we take responsibility for accelerating climate action and supporting the Paris Agreement.

TIME and Statista again ranked us among the world’s top 500 companies for sustainable growth. We earned our first EcoVadis Gold Medal, placing us in the top 5% globally and we achieved the highest CDP rating among listed peers in our industry.

We are close to meeting our 2030 climate targets five years ahead of plan, with a 70% reduction in Scope 1 and 2 emissions and a 41% reduction in Scope 3. We are defining new ambitions for 2026 and beyond.

Since around 95% of our climate impact comes from product use, we continue to prioritize energy and water efficiency across all new solutions to help customers operate more easily, profitably, and sustainably. This year, we also partnered with Mimbly, a Swedish cleantech innovator in water recycling, further strengthening our innovation pipeline.

This year’s Annual Report is our first report prepared according to the new European Sustainability Reporting Standards (ESRS), thus offering even deeper transparency into our sustainability strategy and progress.

Creating a stronger, best-in-class company

Over recent years, we have strengthened the company both structurally and financially. Today, we are more geographically balanced, with manufacturing in America, Europe, and Asia. We have improved profitability for several consecutive years, and we stand strong on a solid financial foundation.

As I am preparing to retire in May, after devoting my entire professional life to this company and leading the business since 2009, I look back with pride. It has been a privilege to work with so many talented and dedicated colleagues. I am confident that Paolo Schira, who will take over when I leave, will continue the journey successfully.

Electrolux Professional is a remarkable company. I have always believed in its potential – and I believe even more strongly that its best days lie ahead. Under Paolo’s leadership, I am convinced the company will reach new heights and fully realize the vision of becoming the best-in-class company we know it can be.

Alberto Zanata, President and CEO