Sweden · Delayed Price · Currency is SEK ASSA ABLOY AB Earnings Call Transcripts
Fiscal Year 2026
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Organic sales grew 2% with strong EBIT margin improvement and 30% higher cash flow, despite a -10% FX impact. Segment performance was solid in Americas and EMEA, while residential and logistics markets remained challenging. Acquisitions and new product launches supported growth.
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Sustainability is fully integrated, driving growth and cost efficiency, with strong progress on emissions, water, and safety targets. The 2030 program raises ambitions with new targets for operations, product sustainability, and circular economy, while maintaining a focus on people, supply chain, and compliance.
Fiscal Year 2025
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Q4 2025 saw strong organic and acquisition-driven growth, record margins, and robust cash flow, despite FX headwinds. Non-residential and tech segments outperformed, while residential and APAC lagged. Active M&A, new product launches, and a SEK 6.4 dividend proposal highlight the year.
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Aims for 10% growth per cycle, split between organic and inorganic, with a 16%-17% EBIT margin. Focuses on innovation, recurring revenue, and emerging markets, while maintaining strong financial discipline and a robust acquisition pipeline.
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Q3 saw 3% organic growth, record margins, and strong cash flow, with robust non-residential performance offsetting residential weakness, especially in Greater China. Five acquisitions and strong growth in electromechanical and recurring revenues supported results.
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Q2 saw 3% organic growth and strong operational execution, with EBITDA margin at 17.2% and robust cash flow. Non-residential and perimeter security segments outperformed, while residential and Greater China remained weak. Pricing actions and acquisitions are set to support future growth.
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Q1 delivered 8% sales growth, with strong non-residential and global tech performance, but margins diluted by one-off M&A costs and tariff uncertainty. Residential markets remain weak, while acquisitions and operational efficiencies support long-term margin targets.
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Sustainability is fully integrated into operations, innovation, and governance, with strong progress on 2025 and 2030 targets, especially in emissions reduction, supply chain engagement, and product innovation. Financial planning aligns with sustainability, and regulatory compliance is proactive, supporting profitable growth and market leadership.
Fiscal Year 2024
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Q4 saw 7% sales growth driven by acquisitions, record operating income, and strong cash flow. Commercial and non-residential segments remain robust, while residential and logistics face headwinds from slow interest rate cuts. Acquisitions and new product launches continue to drive growth.
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Q3 delivered record EBIT and EBITDA margins, with slight organic growth and strong acquisition activity. Residential markets remain challenging, but non-residential and Global Technologies performed well. Outlook remains cautious, with price increases and cost control supporting margins.
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Q2 delivered 10% sales growth, driven by acquisitions, with record operating profit and strong cash conversion. Residential markets remain challenging but are stabilizing, while non-residential and service segments show resilience. Margin improvements and ongoing acquisitions support a positive outlook.