Assa Abloy (ASSA) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered 3% organic growth and 5% acquired net growth, with net sales reaching SEK 38,015 M, offset by an 8% negative currency impact.

• Operating margin reached 16.2% and EBITDA/EBITA margin 17.2%, with strong operational execution and robust cash flow.

• Five acquisitions were completed in Q2, eleven year-to-date, adding SEK 4.4 billion in annualized sales; 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.

• Earnings per share increased 1% to SEK 3.57; operating cash flow was SEK 5,452 M, with a cash conversion of 103%.

Financial highlights

• Q2 2025 net sales: SEK 38,015 M (flat YoY); organic growth 3%, acquired/divested +5%, currency -8%.

• EBITA margin 17.2%, EBIT margin 16.2%; EBITA up 2% to SEK 6,555 M, EBIT up 1% to SEK 6,155 M.

• Net income: SEK 3,962 M (+1% YoY); EPS: SEK 3.57 (+1% YoY).

• Operating cash flow: SEK 5,452 M (-3% YoY); cash conversion: 103%.

• Net debt/equity at 71%; net debt/EBITDA at 2.3x.

Outlook and guidance

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

• Residential recovery in Europe is expected in 2025, with Sweden and New Zealand showing early signs of improvement.

• Market conditions remain uncertain, but strong operating leverage and cash conversion are expected to support performance.