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Securitas AB Interim Report Q1 2025

Securitas AB has released its interim report for the first quarter of 2025, showcasing a positive start to the year with robust growth across its various business segments. The company reported total sales of MSEK 39,606, a slight increase from MSEK 39,260 during the same period last year. This performance translates to an organic sales growth of 3%, despite a decline in growth from the previous year, and reflects the company's ongoing evolution into more technology and solutions-oriented services.

The report indicates a notable real sales growth of 5% in technology and solutions, driven by a strategic shift toward high-margin offerings. President and CEO Magnus Ahlqvist expressed satisfaction with the results, observing improved operating margins which climbed to 6.4%, up from 6.0% in the prior year. This is particularly encouraging as it demonstrates Securitas' ability to enhance profitability across all segments, including security services and technology solutions.

Strong Cash Flow and Financial Health

Securitas has also reported an operating income before amortization of MSEK 2,525, compared to MSEK 2,357 in Q1 2024. The company has successfully improved cash flow from operating activities to 1%, a significant turnaround from the negative performance experienced last year. The net debt/EBITDA ratio further reflects solid financial health at 2.5, down from 2.9, showcasing Securitas' commitment to maintaining a strong balance sheet.

Resilience in a Complex Risk Landscape

Ahlqvist emphasized the company's resilience amid increased global uncertainty and heightened geopolitical risks. Securitas’ long-term partnership approach, combined with extensive security expertise and AI-enabled digital capabilities, positions the company as a preferred partner in the evolving security market. The firm has focused on delivering localized security services, minimizing exposure to global trade fluctuations and macroeconomic volatility. Although uncertainty persists, the first quarter showed no material negative impact, affirming the company's proactive approach.

The management has concentrated on optimizing its portfolio in security services, leading to improved profitability through strategic adjustments to contract management, particularly focusing on eliminating low-margin contracts across North America and setting sights on European and Ibero-American markets for the future.

Business Optimization and Future Plans

Looking ahead, Securitas has implemented a business optimization program anticipated to yield annual savings of MSEK 200 by the end of 2025. Furthermore, the company is refining its business mix to enhance long-term performance. Notably, the divestment of its airport security business in France marks a strategic shift towards areas with better growth prospects. An evaluation of Securitas Critical Infrastructure Services is underway, with expectations to finalize this assessment within the year.

Shareholder Value and Future Aspirations

The impressive 16% increase in earnings per share aligns with Securitas’ strategy, supporting its ambition of achieving an operational margin of 8% by the end of 2025. Ahlqvist affirmed the company’s commitment to consistently generate long-term value for its shareholders, a guiding principle that continues to shape Securitas' strategies and operational frameworks.

In conclusion, Securitas AB’s performance in Q1 2025 stands as a testament to its strategic planning, adaptation to market changes, and focus on high-margin growth. With a solid foundation and a clear vision for the future, Securitas is aptly positioned to navigate challenges and pursue opportunities in the security landscape.

For further insights and detailed financial information, analysts and media representatives are invited to participate in a conference call scheduled for May 8, 2025, at 9:30 AM (CEST), where executives will discuss the results and respond to queries.

For additional details, visit Securitas Investors.