Securitas (SECU) Q1 2026 earnings summary

Executive summary

• Adjusted operating margin improved to 7.0% (6.7%), with all segments contributing to profitability gains and EPS up 22% year-over-year to SEK 2.80.

• Organic sales growth, adjusted for the SCIS government business closure, was 2%, below expectations, with North America impacted by lower technology installation sales.

• Portfolio optimization advanced with divestments in the U.S. and Canada and the acquisition of Liferaft, enhancing intelligence capabilities.

• Client retention remained stable or improved across all segments, with a high retention rate of 90%.

• Cash flow from operating activities rose sharply to 40% of operating income, and net debt/EBITDA improved to 2.2 (2.5).

Financial highlights

• Adjusted operating margin was 7.0% (up 30 bps year-over-year), with reported margin at 6.8% (6.4%).

• Operating income before amortization reached SEK 2,459M, up 8% year-over-year.

• EPS before IAC was SEK 2.47, up 16% year-over-year; reported EPS growth was 34%.

• Operating cash flow was SEK 978 million (40% of operating income); free cash flow improved to SEK 178 million from negative SEK 1,048 million last year.

• Net debt at quarter-end was SEK 32.2 billion, with net debt/EBITDA reduced to 2.2x.

Outlook and guidance

• Expect North America growth to recover in Q2, supported by strong order intake and backlog.

• Full-year 2026 finance net expected below SEK 1.6 billion, down from SEK 1.8 billion in 2025.

• Tax rate for 2026 expected at 27.5%.

• Transformation program in Europe expected to cost SEK 225–250 million for FY 2026.

• Continued focus on margin improvement, profitable growth, and business mix shift toward technology and solutions, with more details at the June Capital Markets Day.