Assa Abloy (ASSA) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered 3% organic sales growth and 2% total sales growth, with record operating margin of 16.8% and strong cash flow up 10% year-over-year.

• Five acquisitions were completed in the quarter, contributing to a 5% net acquired growth and expanding technology and product offerings.

• Non-residential segments in North America, Europe, and Oceania showed strong momentum, while residential markets remained challenging, especially in Greater China.

• Electromechanical products grew 12%-13% organically, with recurring revenue close to 6% of sales.

• New digital product launches and sustainability initiatives supported strategic growth.

Financial highlights

• Q3 sales reached SEK 38,146 M, up 2% year-over-year, with 3% organic growth and 5% acquired net growth, offset by a -6% currency impact.

• EBIT and EPS both increased by 3% year-over-year; EBIT margin hit a record 16.8% (SEK 6,416 M), and EBITDA margin reached 17.9%.

• Operating cash flow was SEK 6,969 M, up 10% year-over-year, with cash conversion at 1.25 (125%).

• Net income for Q3 was SEK 4,144 M, up 3%; EPS increased 3% to SEK 3.73.

• Gross margin improved to 43.1% (+0.9 pts year-over-year).

Outlook and guidance

• Q4 is expected to see a higher negative FX impact (-9%) due to SEK/USD movements, diluting margins.

• Acquisitions and divestments are expected to add 3% to Q4 2025 sales, with a slightly accretive effect on operating margin.

• Management maintains a positive outlook based on strong operating leverage, cash flow, and a robust acquisition pipeline.

• Continued investment in growth areas and cost adaptation in challenging markets.