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 and record EBIT margin of 16.8%.

• Global Technologies and Americas segments delivered strong growth, while EMEIA and Entrance Systems saw good sales increases; APAC experienced a sales decline.

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

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

• Strong cash flow and cash conversion, with 137% in Q4 and 106% for the full year.

Financial highlights

• Q4 organic sales growth of 4%, net acquisition growth of 3%, but -10% FX impact led to -3% reported sales; Q4 sales were SEK 38,307 M.

• Record EBITDA margin of 17.9% and EBIT margin of 16.8% in Q4; full-year EBIT up 2% to SEK 24,664 M.

• Q4 EPS was SEK 3.85 (up 1%); full-year EPS SEK 14.34 (up 2%).

• Cash conversion above 100% for the third consecutive year.

• Net income for the year increased 2% to SEK 15,939 M.

Outlook and guidance

• Expect continued FX headwinds, especially in Q1 2026, with negative impact on both top and bottom lines; FX -11%, M&A +3% for Q1.

• Price increases of 1.5%-2% planned for 2026, depending on material costs and inflation.

• Organic volume growth expected to accelerate, with ideal drop-through at 30% if volume growth is 2%-3%.

• 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.