ASSA ABLOY: Quarterly Report Q2 2025

STOCKHOLM, July 17, 2025 /PRNewswire/ --

Strong overall performance

Second quarter

• Net sales totaled SEK 38,015 M (37,968), with organic growth of 3% (-1) and acquired net growth of 5% (11). Exchange rates affected sales by -8% (0).
• Organic sales growth was strong in Global Technologies and good in Americas. Entrance Systems had a small organic sales growth, while organic sales declined in EMEIA and Asia Pacific.
• Five acquisitions with combined annual sales of about SEK 800 M were completed in the quarter.
• Operating income¹ (EBITA) increased by 2% to SEK 6,555 M (6,434) with an operating margin of 17.2% (16.9).
• Operating income¹ (EBIT) increased by 1% to SEK 6,155 M (6,085), with an operating margin of 16.2% (16.0).
• Net income¹ amounted to SEK 3,962 M (3,927).
• Earnings per share¹ amounted to SEK 3.57 (3.54).
• Operating cash flow amounted to SEK 5,452 M (5,604).

Sales and income

	Second quarter					First half-year
	2024	2025		?		2024	2025	?
Sales, SEK M	37,968	38,015		0 %		73,168	75,955	4 %
Of which:
Organic growth	-349	945		3 %		-1,111	1,552	2 %
Acquisitions and divestments	3,925	1,855		5 %		7,532	3,564	5 %
Exchange rate effects	-83	-2,753		-8%		-118	-2,329	-3%
Operating income (EBIT)1, SEK M	6,085	6,155		1 %		11,512	11,800	3 %
Operating margin (EBITA)1, %	16.9 %	17.2 %				16.6 %	16.6 %
Operating margin (EBIT)1, %	16.0 %	16.2 %				15.7 %	15.5 %
Income before tax1, SEK M	5,236	5,319		2 %		9,852	10,085	2 %
Net income1, SEK M	3,927	3,962		1 %		7,389	7,513	2 %
Operating cash flow, SEK M	5,604	5,452		-3%		8,701	7,876	-9%
Earnings per share1, SEK	3.54	3.57		1 %		6.65	6.76	2 %

¹ Excluding items affecting comparability. Please see the tabulated figures section in this report, page 14, for further details about the financial effects in 2024 and 2025.

Comments by the President and CEO

Strong overall performance

I am proud of the strong operational execution and strong growth momentum in the quarter where we achieved good organic growth of 3% and strong acquired net growth of 5%, despite challenging market conditions. Currency effects posed an important headwind of -8%, resulting in flat total sales growth.

Global Technologies delivered strong organic growth of 8% with positive development in both HID and Global Solutions. Americas achieved good growth of 4% with high single digit sales growth in the North America Non-Residential segment and stable development in the North America Residential and Latin America segments. We see strong growth in the aftermarket, fueled by robust demand for electromechanical upgrades. Entrance Systems had a small organic growth of 1% with growth across all segments except Industrial. Sales declined organically by 1% in EMEIA primarily due to some delays in project businesses and a continued weak residential market, and Asia Pacific's organic sales declined by 1% as the residential markets remain weak here as well, particularly in China.

The operating profit excluding items affecting comparability increased by 1% to SEK 6,155 M despite significant negative currency effects, with a corresponding operating margin of 16.2% (16.0). Although effects from acquisitions net and currency diluted the operating margin by 70bps, this was more than offset by an excellent operating leverage of 53%, supported by price/cost tailwind and savings from our Manufacturing Footprint Programs and continuous efficiency improvements. The operating cash flow remained strong and totaled SEK 5,452 M, corresponding to a strong cash conversion of 103%.

Our agile decentralized organization enables us to invest in opportunities while increasing cost efficiency
Despite ongoing macroeconomic uncertainty, including the tariff situation in the US and mixed market conditions globally, our decentralized structure and agile approach continues to be a great advantage. In this uneven landscape, our local teams are empowered to respond quickly to the specific dynamics of their respective market. By reallocating resources and shifting focus, we can capture growth opportunities while maintaining cost efficiency. For example, even in a softer market environment, we are seeing strong demand for upgrades to electromechanical and digital solutions. Sales in the quarter of electromechanical products and solutions grew 12%, adjusted for currencies. To capitalize on this opportunity and maintain our competitive edge, we are strategically investing in innovation and strengthening our sales organization. At the same time, we are reducing spending in other areas of the business.

We also continue to invest in growth through acquisitions, completing five acquisitions in the quarter. One of these was TeleAlarm, a European provider of integrated remote care technology for independent living. The acquisition strengthens our position in Senior Care, where demand for smart and connected solutions is growing, and supports our broader ambition of increasing our presence in key verticals.

Thank you for your continued trust in ASSA ABLOY.

Stockholm, July 17, 2025

Nico Delvaux
President and CEO

Further information can be obtained from:

Nico Delvaux,
President and CEO, phone: [phone]

Erik Pieder,
Executive Vice President and CFO, phone: [phone]

Björn Tibell,
Head of Investor Relations, phone: [phone],
e-mail: [e-mail]

ASSA ABLOY is holding a telephone and web conference at 09.00 on July 17, 2025 which can be followed online at assaabloy.com/investors.

It is possible to submit questions by telephone on: 08-505 100 31, [phone] or [phone]

This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on July 17, 2025.

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