Quarterly Report Q1 2025: ASSA ABLOY

Quarterly Report Q1 2025: ASSA ABLOY

STOCKHOLM, April 23, 2025 /PRNewswire/ --

Strong performance in challenging market conditions

First quarter

• Net sales increased by 8% to SEK 37,940 M (35,200), with organic growth of 2% (–2) and acquired net growth of 5% (11). Exchange rates affected sales by 1% (0).
• Organic sales growth was strong in Global Technologies, good in Americas, stable in EMEIA and Entrance Systems, while organic sales declined in Asia Pacific.  
• Six acquisitions with combined annual sales of about SEK 3,600 M were completed in the quarter. Divestment of the majority of Citizen ID was completed.     
• A new Manufacturing Footprint Program was launched during the quarter. The expected restructuring cost for the new program is SEK 1,332 M, with a pay-back time, including capital expenditure, of less than two years.        
• Operating income¹ (EBITA) increased by 5% to SEK 6,051 M (5,740) with an operating margin of 15.9% (16.3).
• Operating income¹ (EBIT) increased by 4% and amounted to SEK 5,645 M (5,427), with an operating margin of 14.9% (15.4).
• Net income¹ amounted to SEK 3,551 M (3,462). 
• Earnings per share¹ amounted to SEK 3.20 (3.12).
• Operating cash flow amounted to SEK 2,424 M (3,096).

Sales and income

¹Excluding items affecting comparability. Please see the tabulated figures section in this report, page 12, for further details about the financial effects in 2024 and 2025.

Comments by the President and CEO

Strong performance in challenging market conditions
The macroeconomic environment remains challenging, with geopolitical uncertainty fueled by tariff concerns and high interest rates. However, our strong exposure to the aftermarket continues to demonstrate its value, contributing to 2% organic sales growth in the first quarter. Acquisitions net contributed 5% to sales growth, while currency effects were small at 1%. With our agile organization and strong local presence, we are well-positioned to adapt to changing market conditions and prioritize growth opportunities while taking cost actions where needed. 

Sales were primarily driven by strong organic sales growth of 8% in Global Technologies, supported by strong growth in HID and very strong growth in Global Solutions. Americas had good organic sales growth of 2% with continued strong growth in the North America Non-Residential segment and Latin America. The North America Residential segment saw sales decline, where persistently high interest rates and uncertainty weighed on consumer confidence. EMEIA's organic sales were flat in the quarter, as strong growth in Central Europe and in the Nordics was offset by sales declines in South Europe and the Middle East. Entrance Systems' organic sales were also flat, impacted by continued weakness in the Industrial and Doors & Automation segments. The Perimeter Security and Pedestrian segments report very strong and good growth, respectively. Asia Pacific's sales declined by 5% with continued weak demand in the Chinese residential market.

The operating profit excluding items affecting comparability increased by 4% to SEK 5,645 M, with a corresponding margin of 14.9% (15.4). The operating margin was diluted by 140 bps due to acquisitions and divestments. These effects are largely temporary and mainly related to transaction- and integration costs, seasonal impact and divestment results. This was partly offset by very strong operating leverage of 60% from price realization and cost management. The operating cash flow of SEK 2,424 M decreased by 22% versus last year and was affected by inventory build-up in preparation for tariffs. The corresponding cash conversion was 51%.

Manufacturing Footprint Programs are key enablers for growth
In the first quarter, we launched our 10th Manufacturing Footprint Program (MFP), which will generate annual savings of about SEK 1 bn with a payback period of less than two years. The program comprises almost 60 projects and, similarly to previous programs, includes factory, warehouse and office closures across all divisions.

The efficiency gains and cost savings achieved through footprint consolidation are key growth enablers, fueling our growth accelerators outlined in the year-end report. These enablers allow us to further increase investments in R&D, which are essential to drive the transition from mechanical to electromechanical, among other things. They also allow us to expand our service offering, strengthen recurring revenue streams, and grow our presence in emerging markets. We are confident that our strategy will deliver accelerated growth over time even though the prevailing market conditions are challenging and uncertain.

Thank you for your continued support and trust in ASSA ABLOY.

Stockholm, April 23, 2025

Nico Delvaux
President and CEO

Further information can be obtained from:

Nico Delvaux,
President and CEO, tel. no: +46 8 506 485 82

Erik Pieder,
Executive Vice President and CFO, tel.no: +46 8 506 485 72

Björn Tibell,
Head of Investor Relations, tel. no: +46 70 275 67 68,
e-mail: bjorn.tibell@assaabloy.com 

ASSA ABLOY is holding a telephone and web conference
at 09.00 on April 23, 2025
which can be followed online at assaabloy.com/investors.

It is possible to submit questions by telephone on:
08–505 100 31, +44 207 107 0613 or +1 631 570 5613

This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on April 23, 2025.

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SOURCE ASSA ABLOY