ASSA ABLOY Reports Strong Q3 Performance with Significant Growth at 3% and 5% Amid Mixed Market Conditions

ASSA ABLOY Reports Strong Q3 Results

On October 21, 2025, ASSA ABLOY released its quarterly report for the third quarter of 2025, illustrating robust growth and strong profit margins amidst fluctuating market conditions.

In the third quarter, the company recorded net sales of SEK 38,146 million, an increase from SEK 37,418 million in the previous quarter. This reflects an organic growth rate of 3% compared to zero growth in the same quarter a year ago, alongside an acquired net growth of 5%. However, the exchange rates posed a challenge, impacting sales negatively by 6%.

The organic sales growth was particularly encouraging in EMEIA, Entrance Systems, Global Technologies, and Americas, while sales saw a decline in the Asia Pacific region. Five acquisitions completed during the quarter contributed to an annual sales total of approximately SEK 500 million. The operating income, defined as EBITA, rose to SEK 6,815 million, displaying a 3% increase from SEK 6,609 million, with an operating margin of 17.9%.

Net income also showed a significant rise, accounting for SEK 4,144 million, up from SEK 4,033 million in the previous year. Furthermore, earnings per share edged up to SEK 3.73 from SEK 3.63, and operating cash flow surged to SEK 6,969 million, indicating a strong cash conversion rate of 125%.

Growth by Regions

In examining the sales growth by regions, EMEIA reported a commendable organic growth of 4%, buoyed by strong performances in the Nordics and Central Europe. Entrance Systems also contributed a significant 4% organic growth, especially in Perimeter Security and Pedestrian segments, while the Industrial segment reported a rebound.

Global Technologies experienced good organic growth of 3%, driven by strong contributions from its Global Solutions and HID segments. On the flip side, while the Americas region saw an organic growth of 3%, the North American residential market faced challenges primarily due to high interest rates that dampened demand in new constructions. In contrast, Asia Pacific experienced a 4% decline in organic sales, with notable sales downturns in China overshadowing growth in other areas.

Operational Highlights

Despite continuous currency challenges and rising tariffs, the operating profit showed resilience, increasing by 3% to SEK 6,416 million. The company managed to improve its operating margin to 16.8%, marking the highest it has seen for a single quarter in ten years, thanks to effective operational leverage and targeted cost-saving initiatives. ASSA ABLOY's strong cash flow and strategic investments into rule-based efficiency solidified its financial standing.

The Electromechanical Transition

ASSA ABLOY is proactively leading the industry's shift from mechanical to electro-mechanical solutions, a move driven by growing demands for enhanced safety and cybersecurity, along with advancements in digital technologies. This transition emphasizes the need for more accessible and reliable solutions amidst demographic shifts of an increasingly digital-savvy younger generation and an aging population requiring greater care.

Year-to-date, electromechanical products from ASSA ABLOY have experienced a substantial currency-adjusted growth of 12%. The company's ongoing commitment to innovation and technological integration has fueled these impressive results, although the mechanical sector remains crucial to their overall success, as many electromechanical solutions are grounded in solid mechanical platforms.

Strategic Acquisitions

The company's growth strategy has also been significantly bolstered by recent acquisitions, allowing ASSA ABLOY to expand its product and service range while tapping into new technologies. In the third quarter alone, five new businesses were acquired, indicating a strong pipeline for future growth prospects.

With three quarters of the year behind them, ASSA ABLOY is poised for another powerful year as it navigates through the upcoming quarter with confidence, supported by its strong operational foundations and strategic initiatives.

Reflecting on Company Performance

Nico Delvaux, President and CEO of ASSA ABLOY, expressed his satisfaction with the company's performance, highlighting their ability to thrive in a mixed market environment and thanking stakeholders for their continued trust in the corporation.

Conclusion

With its steady growth trends and strategic moves towards innovation, ASSA ABLOY is set to continue its trajectory of success as it leads the market into a new era of technological integration and enhanced security solutions.