Assa Abloy (ASSA) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales rose 7% year-over-year to SEK 39,575M, with full-year sales up 7% to SEK 150,162M, mainly driven by acquisitions and currency effects.

• Operating income (EBIT) reached a record SEK 6,529M in Q4, with an operating margin of 16.5% and strong cash conversion at 141%.

• 8 acquisitions were completed in Q4, totaling 26 for the year, contributing close to SEK 8bn in annualized sales.

• The board proposes a dividend of SEK 5.90 per share for 2024, to be paid in two tranches, up from SEK 5.40 last year.

• Earnings per share increased 7% in Q4 to SEK 3.81; full-year EPS up 4% to SEK 14.09.

Financial highlights

• Q4 EBITA margin improved to 17.4% (from 16.2%); EBIT margin at 16.5%; Q4 EBITDA margin reached 19.7%.

• Q4 net income reached SEK 4,214M, up 6% year-over-year; full-year net income was SEK 15,636M, up 4%.

• Organic growth was flat in Q4 and -1% for the full year; acquisitions contributed 6% in Q4 and 10% for the year.

• Net debt/EBITDA at 2.3; net debt slightly above SEK 70bn; net-debt/equity ratio at 0.66.

• Return on capital employed at 14.4% (full year); Group ROCE (annualized, excl. items affecting comparability) at 15.3%.

Outlook and guidance

• Acquisitions/divestments and currency effects expected to add 4% each to Q1 2025 sales; acquisitions may be margin dilutive, currency effects margin accretive.

• Commercial and non-residential segments expected to remain strong, with logistics vertical showing signs of recovery in H2.

• Residential market recovery is expected but timing is less optimistic due to slower-than-expected interest rate cuts.

• Organic and acquisition-driven growth remain key priorities, with a 5% ambition for each over the business cycle.

• Price increases are expected to be between 1% and 2% in 2025, depending on inflation and tariffs.