Sweden · Delayed Price · Currency is SEK ASSA ABLOY AB Earnings Call Transcripts
Fiscal Year 2026
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Q2 saw 4% organic sales growth, record EBIT and EPS, and strong cash flow, driven by EMEA and Americas, while APAC lagged due to Greater China. Five acquisitions and robust innovation supported growth, with non-residential segments outperforming residential.
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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 segments outperformed, while residential markets remain challenging. Five acquisitions and a key divestment were completed, and pricing actions are set to offset tariff impacts.
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Q1 saw 8% sales growth, driven by acquisitions and stable organic gains, but margins were diluted by one-off M&A costs. Commercial and non-residential segments performed well, while residential and Greater China remained weak. Tariff volatility and FX headwinds pose ongoing risks.
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Revised summary: Sustainability is integrated into strategy, operations, and innovation, with strong progress on 2025 and Science Based Targets. Growth is driven by sustainable products, digital solutions, and supplier engagement for Scope 3 reductions. The company leads in regulatory compliance, CSRD reporting, and prioritizes people, safety, and improvement.
Fiscal Year 2024
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Q4 saw a 7% sales increase year-over-year, driven by acquisitions and strong execution, with record operating income and cash flow. Commercial and non-residential segments remain robust, while residential and logistics face headwinds. The outlook is positive for continued acquisition-driven growth and margin improvement.
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Q3 delivered record EBIT and margins, with positive organic growth and strong acquisition activity. Residential and logistics markets remain challenging, but price realization and cost control support profitability. Outlook anticipates gradual recovery as interest rates decline.
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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.