Securitas (SECU) Q4 2024 earnings summary

Executive summary

• Achieved 4% organic sales growth in Q4 2024 and 5% for the full year, with full-year sales reaching MSEK 161,921 and significant margin improvements, especially in Europe and Ibero-America, supported by technology and solutions growth.

• Operating margin improved to 7.3% in Q4 (from 6.8%) and 6.9% for the year (from 6.5%), with Europe leading margin gains and strong support from North America and technology and solutions.

• Operating cash flow reached 153% of operating result in Q4 and 84% for the year, exceeding financial targets and supporting accelerated de-leveraging, with net debt/EBITDA reduced to 2.5x.

• Major transformation programs, including the Stanley integration and Ibero-America transformation, were completed, and a business optimization program was launched targeting MSEK 200 in annualized savings by end of 2025, mainly in Europe.

• The Board proposes a dividend increase to SEK 4.50 per share, an 18% rise, to be paid in two installments.

Financial highlights

• Q4 sales were MSEK 41,794 (up from 39,542), with organic sales growth of 4% and operating income before amortization at MSEK 3,036 (up from 2,683); full-year operating income before amortization was MSEK 11,200 (up from 10,247).

• Q4 free cash flow was SEK 3.7 billion, and full-year free cash flow was MSEK 5,077 (up from 4,938), supported by strong operating cash flow and lower interest payments.

• Q4 EPS was SEK 2.86 (up from 2.11); full-year EPS was SEK 9.01 (up from 2.24), with EPS before items affecting comparability at SEK 10.81.

• Net debt/EBITDA improved to 2.5x (from 2.7x), reflecting accelerated deleveraging.

• CapEx at 2.5% of sales for the year, expected to remain at this level in 2025.

Outlook and guidance

• Committed to achieving an 8% operating margin by end of 2025, with continued focus on technology and solutions growth and cost optimization.

• Business optimization program expected to deliver MSEK 200 in annualized savings by end of 2025, mainly in Europe.

• Finance net expected at SEK 2.1–2.2 billion for 2025, excluding FX and hyperinflation impacts.

• Operating cash flow target remains 70–80% for 2025.

• Investments related to items affecting comparability will be reduced to approximately MSEK 375 in 2025.