Securitas (SECU) Q2 2025 earnings summary

Executive summary

• Organic sales growth accelerated to 5% in Q2, with operating margin improving to 7.3% year-over-year, supported by all business segments.

• EPS increased by 25% in Q2, driven by solid operating results and improved finance net.

• Operating cash flow rose to 106% of operating income, strengthening the balance sheet and supporting long-term value creation.

• Strategic decision to close the government business within SCIS, expected to complete by end of 2026, to sharpen focus and improve long-term profitability.

• Business optimization program on track, targeting $200 million in annualized savings by year-end 2025.

Financial highlights

• Q2 sales were SEK 38,564 million, down 5% due to FX, but organic growth was 5% year-over-year.

• Operating income before amortization was SEK 2,798 million, up 10% year-over-year, with adjusted operating margin at 7.5%.

• Free cash flow improved to SEK 2,191 million from SEK 429 million in Q2 last year.

• Net debt at SEK 35,969 million, down from SEK 41,867 million year-over-year; net debt to EBITDA at 2.4x.

• Items affecting comparability reduced to SEK 166 million, down nearly SEK 80 million year-over-year.

Outlook and guidance

• Committed to achieving an 8% operating margin (adjusted for SCIS closure) by year-end 2025.

• Full-year finance net expected slightly below $2 billion, a decrease from $2.3 billion in 2024.

• CapEx guidance set at around 2.5% of sales, reflecting reduced needs from transformation and IT.

• Full-year cash flow target remains at 70%-80% of operating income, aiming for the upper end.

• Full-year items affecting comparability for business optimization and transformation estimated at approximately SEK 375 million.