Assa Abloy (ASSA) investor relations material

Executive summary

• Q2 2026 delivered 4% organic sales growth and record EBIT margin of 17%, led by EMEIA and Americas, while APAC declined due to Greater China weakness.

• Five acquisitions completed, including the 400th in company history, and one divestment; total sales reached SEK 39,259 M, up 3% year-over-year.

• Electromechanical products saw 8% organic growth in regional divisions, supporting the transition from mechanical to digital solutions.

• Record EPS at SEK 3.98, up 12%, and net income increased to SEK 4,422 M.

• Strong operating cash flow, up 16% year-over-year, with cash conversion at 106%.

Financial highlights

• EBITA margin reached 18.1% (up from 17.2%), EBIT margin at 17.0% (up from 16.2%), and EBIT increased 9% to SEK 6,680 M.

• EPS at SEK 3.98, up 12%; net income and pre-tax income also up 12%.

• Operating cash flow at SEK 6,300 M, up 16% year-over-year; cash conversion LTM at 110%.

• Net debt/EBITDA at 2.2x; net debt at SEK 68,246 M; net debt/equity at 61%.

• Return on capital employed improved by 40 bps; operational value added surpassed SEK 11 billion.

Outlook and guidance

• Q3 2026 currency effects expected to be neutral on sales but slightly dilutive to margin; acquisitions/divestments to add 2% to sales but dilute margin.

• Pricing for the full year expected to be around 2%, with similar levels anticipated in H2.

• Continued strong momentum in non-residential and commercial segments; residential remains challenging, especially in North America.

• Growth in Greater China expected to remain weak in H2; optimism for acceleration in Global Tech and hospitality segments.

• Organization remains decentralized and empowered to address uncertain and swiftly changing market conditions.