Securitas (SECU) Q4 2025 earnings summary

Executive summary

• Achieved 8% operating margin target in H2 2025, with Q4 margin at 8.0% (8.2% adjusted), and strong performance across all segments, especially North America and Europe, both exceeding 8% margin in Q4.

• Organic sales growth was 4% for the year and 3% in Q4, with technology and solutions real sales growth at 6% in Q4.

• EPS before items affecting comparability increased by 18% year-over-year.

• Robust cash generation, with operating cash flow at 88% of operating income before amortization.

• Announced acquisition of Liferaft, a SaaS-based threat intelligence provider, to accelerate digital risk intelligence and recurring revenue.

Financial highlights

• Full-year sales were SEK 155,113M, with Q4 sales at SEK 38,422M.

• Operating income before amortization was SEK 11,493M for FY 2025, with Q4 at SEK 3,063M.

• Free cash flow for FY 2025 was SEK 6,832M, supported by strong operating cash flow and lower interest payments.

• Net debt reduced to SEK 31.3 billion, with net debt/EBITDA at 2.1, down from 2.5.

• Proposed dividend of SEK 5.30 per share, up from SEK 4.50, with a 59% payout ratio.

Outlook and guidance

• Majority of underperforming security services contracts in Europe expected to be completed by H1 2026, with growth and margin improvement weighted toward H2.

• European transformation program costs estimated at SEK 225-250 million for FY 2026.

• Finance net expected to reduce further in 2026, with limited refinancing needs and focus on maintaining investment grade rating.

• Tax rate for 2026 expected to remain around 27.2% (adjusted for SCIS closure impact).

• Most of the SCIS business closure to be completed by end of 2026.