Tempest Security (TSEC) ABGSC Investor Days summary

Business overview

• Full-service security provider since 2009, operating in Sweden, Denmark, and the UK with a global subcontractor network.

• Two main segments: Guarding (Bevakning) and Special Services (Särskilda Tjänster).

• Workforce of around 1,100 employees, with 650 FTEs.

• Average annual growth of 15–20% since 2017, with 30% growth in Q3 2025 and 17% for 9M 2025.

• Adjusted EBITDA margin dropped to 0 in 2024, prompting strategic changes and cost savings; margin at 3.5% in Q3 2025.

Guarding segment performance

• Nationwide operations based on multi-year contracts with high-profile clients.

• Strong organic growth, but profitability was challenged in 2024/2025 due to high start-up costs from rapid expansion.

• Margins have recovered recently, with high customer satisfaction and proven ability to manage large assignments.

• Stationary guarding typically yields 5–10% margins; mobile guarding can exceed 20%.

• Alarm center services offer high scalability and potential margins above 50%.

Special services segment performance

• Operates locally and internationally, often on short- to medium-term contracts.

• Services include personal protection, investigations, background checks, and specialist roles.

• Potential for higher margins than guarding, but earnings are more volatile without a strong market position.

• Organic growth has varied; US expansion attempts were unsuccessful.

• Danish operations are being restructured in 2025 for more stable, recurring business and improved margins.