Assa Abloy (ASSA) investor relations material

Executive summary

• Record Q3 sales of MSEK 40,771, up 7% year over year, with 4% organic growth; acquisitions contributed 2% and currency 1%.

• Record adjusted EBIT of MSEK 7,102, up 11%, with a record 17.4% EBIT margin.

• Americas and EMEIA led organic growth; APAC declined. Management remained confident of delivering another strong year amid geopolitical and macroeconomic uncertainty.

Financial highlights

• Q3 net income rose 14% to MSEK 4,718 and EPS increased 14% to SEK 4.24 on the stated adjusted comparison basis.

• Q3 operating cash flow increased 6% to MSEK 7,405; 9M operating cash flow rose 13% to MSEK 16,847.

• Q3 gross margin was 43.8%, versus 43.1% a year earlier; adjusted gross margin excluding acquisitions improved 1.0 point to 44.1%.

• 9M sales rose 1% to MSEK 115,781; adjusted EBIT increased 6% to MSEK 19,242 and net income reached MSEK 12,678.

• Acquisition transaction and integration costs diluted Q3 adjusted EBIT margin by 0.4 points at group level.

Outlook and guidance

• Q4 sales run-rate effects as of September 30: currency +5% and M&A +2%; currency effects are expected to be slightly margin-accretive, while acquisitions and divestments are expected to dilute operating margin.

• Management expected price-versus-cost to remain a Q4 tailwind, but below Q3's 60 bps as input-cost inflation rises.

• Demand was stable through Q3 and continued into October; specification business grew at a high-single-digit rate.

• MFP 11 was planned for Q4, with facility and office closures expected over roughly two years; detailed charges and savings were due at the next call.

• Sustainability Compass 2.0 was planned for early 2027, emphasizing circular-economy principles and alignment with the 2030 sustainability program.