Assa Abloy (ASSA) Q4 2025 earnings summary

Executive summary

• Achieved record full-year sales of SEK 152,409 M, up 1% year-over-year, with strong organic sales growth of 4% in Q4 2025 and notable performance in Global Technologies and Americas; APAC saw a sales decline.

• Completed 23 acquisitions in 2025, including Sargent & Greenleaf, International Door Products, and Kentix, adding SEK 6 billion in annualized sales and strengthening the portfolio.

• Record EBIT margin of 16.8% and EBITDA margin of 17.9% in Q4, with robust operating leverage of 80 bps and cash conversion of 137%.

• Board proposes a dividend of SEK 6.40 per share, up 8–9%, to be paid in two tranches.

• Strong operational execution despite tariffs, high interest rates, and geopolitical uncertainty.

Financial highlights

• Q4 net sales: SEK 38,307 M (down 3% year-over-year due to -10% FX effects); full-year sales: SEK 152,409 M (up 1%).

• Q4 EBIT at SEK 6,448 M (down 1%), EBIT margin 16.8% (+30 bps); full-year EBIT up 2% to SEK 24,664 M.

• EBITDA margin reached 17.9% in Q4 and 17.2% for the full year.

• Net income and EPS both up 2% for the full year; Q4 EPS SEK 3.85, full-year SEK 14.34.

• Cash conversion at 137% in Q4 and 106% for the full year; net debt/EBITDA improved to 2.1–2.2x, gearing at 63%.

Outlook and guidance

• Expect continued FX headwinds, especially from USD/SEK, with negative impact on Q1 2026 sales and margins; FX -11%, M&A +3%.

• Price increases of 1.5%-2% planned for 2026, with further adjustments depending on material cost trends.

• Organic volume growth expected to accelerate, with ideal leverage at 2%-3% volume growth.

• M&A pipeline remains active, aiming for 5% annual growth through acquisitions over the business cycle.

• Focus on innovation, operational excellence, cost discipline, and strategic acquisitions.