Securitas AB's Positive Q2 2025 Report: Growth and Profitability Insights

Securitas AB's Interim Report for Q2 2025

Securitas AB has released its interim report for the second quarter of 2025, illustrating a resilient performance amid challenging global conditions. For the period of April to June, total sales reached MSEK 38,564, a slight decrease from MSEK 40,638 in the previous year. However, the company achieved an organic sales growth of 5%, consistent with prior results, and recorded a real sales growth of 4% in its technology and solutions sector.

The operating income before amortization stood at MSEK 2,798, reflecting a modest decline from MSEK 2,801 the previous year. Notably, the operating margin was reported at 7.3%, an increase from 6.9%, demonstrating effective management and operational efficiency across the various business units.

Throughout the first half of the year, total sales amounted to MSEK 78,170, down from MSEK 79,898 year-over-year. Nonetheless, the organic sales growth was recorded at 4% with a 5% real sales growth in technology and solutions. The operating income before amortization for this period increased to MSEK 5,323, up from MSEK 5,158, showcasing a positive trend in profitability and cost management.

In the report, President and CEO Magnus Ahlqvist emphasized the strong results across all segments, stating, “We delivered a strong operating margin of 7.3%, and performance was bolstered by various business segments.” The company acknowledged that the improved operating cash flow is a significant factor that solidifies its current advantageous position in the market, with a substantial cash flow from operational activities at 106%, compared to last year's 60%.

A Resilient Business Model

In light of an unpredictable global landscape and geopolitical uncertainties, Securitas maintains a steadfast approach to client relations and risk management. This proactive strategy, combined with a comprehensive understanding of security needs and the use of advanced AI-digital capabilities, enhances Securitas's standing as a reliable partner in the security field. The company’s model focuses on local service delivery, reducing the risks associated with global trading shifts.

Despite the ongoing global trade volatility, Securitas reported no significant impacts in the second quarter, illustrating the model's strength. “We remain vigilant, closely monitoring developments together with our clients,” Ahlqvist stated.

Focus on Profitability

Efforts to enhance profitability in technology and solutions as well as security services have yielded promising outcomes. Emphasis on optimizing commercial offerings and maintaining cost efficiency has resulted in significant improvements.

The security services division has witnessed better margins on new sales, aided by active portfolio management. The company is poised to continue its efforts to revamp non-performing contracts, with plans to intensify these initiatives throughout Europe.

Renewals of key airport security contracts have further bolstered their profitability, affirming the strength of Securitas's enhanced offerings to clients. An ongoing business optimization program is projected to deliver MSEK 200 in annualized savings by the close of 2025, aligning with their goals for sustainable growth.

Ahlqvist noted the decision to shut down the government business within Securitas Critical Infrastructure Services (SCIS), a move aimed at refocusing their long-term strategy. This closure is expected to foster improved profitability and is anticipated to be largely finalized by the end of 2026.

Commitment to Shareholder Value

In the context of these positive developments, Securitas reported a 25% increase in earnings per share, underlining their concentration on shareholder returns. The aim to achieve an operating margin of 8% remains a pivotal objective as the company heads into the latter half of 2025.

The upcoming telephone conference scheduled for July 30, 2025, at 9:30 a.m. CEST will allow analysts and media representatives to discuss the report in detail. A recorded version will be accessible on the company’s website post-conference.

In conclusion, Securitas AB's interim report confirms its resilience and positive trajectory within a complex market landscape, preparing for a strong second half of 2025 and beyond. As always, the company remains dedicated to protecting what matters most – the safety and security of its clients' people and assets.