Securitas (SECU) Q1 2025 earnings summary

Executive summary

• Achieved 3% organic sales growth and a 40 basis point improvement in operating margin to 6.4% in Q1 2025, with all business segments contributing to margin gains.

• EPS grew 16% year-over-year before items affecting comparability, and operating cash flow improved to 1% of sales, with a strong balance sheet maintained.

• Business optimization and European transformation programs are on track, targeting SEK/MSEK 200 million in annualized savings by end-2025.

• Completed divestment of the French airport/aviation security business and are evaluating strategic options for the U.S. Security as Critical Infrastructure Services (SCIS) unit.

• Net debt/EBITDA ratio reduced to 2.5x from 2.9x, with strong liquidity and no financial covenants.

Financial highlights

• Total sales reached MSEK 39,606, with organic sales growth of 3% year-over-year.

• Operating margin rose to 6.4%, up 40 basis points year-over-year; operating income before amortization was MSEK 2,525, up 7%.

• EPS was SEK 2.29, up 29% year-over-year; EPS before items affecting comparability grew 16%.

• Operating cash flow improved to MSEK 14 (1% of sales), up from minus MSEK 362 last year; free cash flow was MSEK -1,048, mainly due to seasonality and prepayments.

• Net debt reduced to SEK/MSEK 37.3 billion, with net debt/EBITDA at 2.5x, below the target of less than 3x.

Outlook and guidance

• Committed to achieving an 8% operating margin by end of 2025, supported by commercial synergies, portfolio management, and cost efficiency.

• Full-year finance net expected to be around SEK 2 billion, lower than previous guidance.

• Business optimization and transformation program costs forecasted at SEK/MSEK 375 million for the year.

• Savings from the optimization program will ramp up through Q2–Q4, with full impact in 2026.

• CAPEX expected to remain at approximately 2.5% of group sales.