#Sweden #Financial Performance #Stockholm #ASSA ABLOY #Q1 2025

ASSA ABLOY's Financial Report for Q1 2025

In the first quarter of 2025, ASSA ABLOY demonstrated notable resilience in the face of challenging market conditions. The company reported a substantial 8% increase in net sales, amounting to SEK 37,940 million, compared to SEK 35,200 million in the prior year. This growth was fueled by a combination of organic growth, which achieved a positive 2%, and the contributions from several acquisitions, accounting for an additional 5% in growth.

The current global economic climate has been difficult, marked by geopolitical uncertainties, tariff concerns, and high interest rates. Despite these challenges, ASSA ABLOY managed to capitalize on its aftermarket presence, which played a vital role in supporting organic sales growth. The report highlighted strong performance in several key areas, particularly within its Global Technologies division, which saw remarkable growth. The Americas region also contributed positively, with organic growth of 2%, although there were declines noted in Asia Pacific due to weak demand, particularly in the Chinese residential market.

Below are some key financial highlights from ASSA ABLOY's Q1 2025 report:

• - Net Sales: SEK 37,940 million (an increase of 8% from SEK 35,200 million)
• - Operating Income (EBIT): SEK 5,645 million, reflecting a 4% increase
• - Net Income: SEK 3,551 million, up by 3% compared to the previous year
• - Earnings per Share: SEK 3.20, a slight increase from SEK 3.12

The company's ability to adapt to market fluctuations was reflected in its operational strategy. ASSA ABLOY advanced with six acquisitions during the quarter, which collectively have annual sales totaling approximately SEK 3,600 million. Additionally, they completed the divestment of a majority stake in Citizen ID, positioning themselves strategically in the market.

A critical initiative launched during the quarter is the Manufacturing Footprint Program, which aims to enhance operational efficiency and reduce costs. The program, expected to incur restructuring costs of approximately SEK 1,332 million, is projected to yield returns within a two-year payback period. This plan encompasses up to 60 projects involving factory, warehouse, and office consolidations aimed at driving further growth within the company.

Operating cash flow witnessed a decline of 22%, landing at SEK 2,424 million, primarily due to an increase in inventory levels in anticipation of tariffs. The corresponding cash conversion rate was noted to be at 51%, reflecting the company's ongoing efforts in cash management amidst rising costs and market adjustments.

Despite the hurdles, the company remains committed to expanding its research and development (R&D) investments while further diversifying its service offerings. Management is enthusiastic about the prospects for accelerated growth, with a robust focus on transitioning from mechanical to electromechanical solutions. This strategy intends to strengthen recurring revenue streams and expand market presence particularly in emerging economies.

In conclusion, ASSA ABLOY's strong performance in the first quarter emphasizes its adaptive strategies and commitment to growth in challenging environments. The ongoing initiatives and recognized strengths indicate a promising outlook as the company maneuvers through complex market dynamics.

For Further Inquiries: For more details, Nico Delvaux, the President and CEO, is available at +46 8 506 485 82. Erik Pieder, Executive Vice President and CFO, can be reached at +46 8 506 485 72. For investor relations, please contact Björn Tibell at +46 70 275 67 68 or via email at [email protected]

ASSA ABLOY will host a telephone and web conference at 09:00 on April 23, 2025, providing insights into future strategies and performance expectations. The conference can be accessed via their official investor relations page.