Assa Abloy (ASSA) Q1 2026 earnings summary

Executive summary

• Organic sales grew 2% year-over-year in Q1 2026, with net acquired growth of 2%, but a -10% FX impact led to a -6% total sales decline.

• EBIT margin improved by 40 basis points to 15.3%, with strong operating leverage and execution.

• Operating cash flow increased by 30% to SEK 3,141 M, with cash conversion up to 66%.

• Three acquisitions were completed in Q1, including the 400th in company history, adding SEK 550 M in annualized sales.

• The operating environment remains uncertain and rapidly changing.

Financial highlights

• Q1 2026 sales were SEK 35,751 M, with EBITDA margin up to 19.3% and EBIT margin at 15.3%.

• EBIT was SEK 5,461 M, down 3% year-over-year due to currency effects.

• EPS before and after dilution was SEK 3.18, unchanged year-over-year.

• Return on capital employed improved to 14.4%.

• Net debt/equity ratio improved to 0.60; net debt/EBITDA at 2.1x.

Outlook and guidance

• Acquisitions and divestments expected to contribute 2% to Q2 2026 sales, with a dilutive effect on margin.

• Currency effects estimated to reduce Q2 2026 sales by 2% and dilute margin.

• Price increases north of 2% anticipated for the year, with further carryover from tariffs in Q2 and Q3.

• Global Technologies expected to grow higher single digits over the business cycle, despite volatility.

• Organization positioned to address changing market conditions with a decentralized structure.