Assa Abloy (ASSA) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong overall performance with 3% organic growth and 5% net growth from acquisitions, offset by an 8% negative currency impact; net sales reached SEK 38,015 M.

• Operating margin reached 16.2% and EBITDA/EBITA margin 17.2%, with EBIT up 1% to SEK 6,155 M.

• Cash flow was robust at SEK 5,452–5,500 M, with a cash conversion rate of 103%.

• Five acquisitions were completed in Q2, including TeleAlarm and Kingspan Door Components; divestment of the Citizen ID business outside the US was finalized.

• Global Technologies and Americas led segment growth, while EMEIA and Asia Pacific saw declines.

Financial highlights

• Q2 2025 net sales were SEK 38,015 M, with 3% organic growth, 5% acquired/divested growth, and -8% currency impact.

• EBITA margin was 17.2% and EBIT margin 16.2%, both above prior year levels.

• Net income and EPS increased by 1% to SEK 3,962 M and SEK 3.57, respectively.

• Operating cash flow was SEK 5,452 M, down 3% year-over-year.

• Gross margin improved to 42.9% from 41.8% year-over-year.

Outlook and guidance

• Continued strong momentum expected in non-residential/commercial segments, especially in North America and Europe, but residential markets remain challenging.

• Acquisitions/divestments expected to add 6% to Q3 2025 sales YoY, with slightly dilutive margin impact.

• Currency effects projected to reduce Q3 2025 sales by 8% YoY and dilute operating margin.

• Price increases to offset tariffs are expected to add about 1% to group-level pricing in H2, with a full-year price component around 2.5% if tariffs remain unchanged.

• Margin accretion from price vs. cost expected to fade as inflationary effects normalize.