#Sweden #Stockholm #ASSA ABLOY #financial report #Q4 2025

ASSA ABLOY's Fourth Quarter Financial Report of 2025

ASSA ABLOY has concluded another remarkable fiscal year with its fourth quarter results showcasing significant financial growth and strategic advancements. In the fourth quarter, net sales reached a substantial SEK 38,307 million, compared with SEK 39,575 million in the previous year. Despite a 10% adverse effect from exchange rate fluctuations, the company achieved an organic growth rate of 4%. Noteworthily, the acquired net growth contributed an additional 3%.

The company’s operational efficiency was reflected in its operating income, known as EBITA, which stood at SEK 6,869 million with an impressive operating margin of 17.9%. In detail, the EBIT decreased slightly by 1% to SEK 6,448 million, demonstrating robust overall profitability amidst a challenging market landscape. The net income showed a marginal increase, totaling SEK 4,281 million compared to SEK 4,214 million in the previous period, with earnings per share rising to SEK 3.85.

Strategic Acquisitions Fueling Growth

In a bold move to enhance its market position, ASSA ABLOY completed seven acquisitions during the quarter, worth an estimated SEK 1,200 million in annual sales. This aggressive acquisition strategy aims to fortify its global presence and expand its diverse product range across the access solutions industry. Notable acquisitions in recent years, including the significant HHI deal, have allowed ASSA ABLOY to break into the U.S. residential market, amplifying its foothold in key regions.

The diversified performance notes commendable organic sales growth across certain segments, particularly in Global Technologies and the Americas, where robust organic sales increases of 9% and 5% were reported, respectively. Conversely, Asia Pacific faced challenges with a 2% decline in organic sales, attributed mainly to a sluggish residential market in China. Despite this setback, major strides were made in other sectors, maintaining a balance in overall growth.

Resilience Amidst Market Challenges

Nico Delvaux, the President and CEO, expressed satisfaction regarding the record financial performance despite existing market volatility, which includes high-interest rates and geopolitical uncertainties. He noted, “The record results are a testament to our team's strong operational execution and our commitment to adding value through strategic acquisitions.” The CEO emphasized that ASSA ABLOY aims for continuous improvement in profitability, gearing towards an EBIT margin target between 16% and 17%.

The operating cash flow for the quarter was reported at SEK 7,815 million, underscoring ASSA ABLOY's strong cash generation ability and a healthy conversion rate of approximately 137%. This cash flow provides a sturdy base for future investment and steady dividend proposals to shareholders, with the Board recommending a dividend of SEK 6.40 per share distributed in two equal installments.

Looking Ahead to 2026

Entering 2026, ASSA ABLOY is confident in navigating diverse market conditions. The strategic focus on innovation, operational excellence, cost discipline, and scalable acquisitions lays a strong foundation for sustainable long-term growth and value creation. Delvaux noted that while facing a continuously evolving market landscape, maintaining a commitment to excellence and efficiency remains pivotal.

With strong prospects and a clear vision for future growth, the company is set to enhance its market share further while ensuring profitability and shareholder value creation. This aligns well with ASSA ABLOY's broader objectives to innovate and lead within the global access solutions market, reinforcing its reputation as a forward-thinking industry leader.