Assa Abloy (ASSA) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered net sales of SEK 39,259 M, up 3% year-over-year, with 4% organic growth and 2% from acquisitions, while APAC declined due to Greater China weakness.

• Five acquisitions completed, including the 400th in company history, and one divestment; robust acquisition pipeline and innovation focus.

• Record EBIT margin of 17% (16.5% excluding one-offs), EBIT up 9% to SEK 6,680 M, and EPS at SEK 3.98, up 12%.

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

• Strong operating cash flow, up 16% to SEK 6,300 M, with cash conversion at 106%.

Financial highlights

• EBITA margin at 18.1% (+90 bps), EBIT margin at 17% (+80 bps), and profit margin at 15.1%.

• Net income for Q2 was SEK 4,422 M, up 12% year-over-year; EPS at SEK 3.98.

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

• Net debt at SEK 68,246 M; net debt/equity at 0.61; net debt/EBITDA at 2.2x.

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

Outlook and guidance

• Acquisitions and divestments expected to have a 2% positive effect on Q3 2026 sales, but slightly dilutive to margin; currency effects neutral.

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

• Non-residential/commercial momentum expected to continue; residential remains challenging, especially in the U.S.

• Global Tech and hospitality segments expected to accelerate in H2 as project pipelines convert.

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