Q2 2025 Assa Abloy AB Earnings Call Transcript
Key Points
- Assa Abloy AB (ASAZF) reported a strong overall performance with a 3% organic growth in Q2 2025, driven by a 2% price increase and a 1% volume increase.
- The company achieved a robust EBITDA margin of 17.2% and an EBIT margin of 16.2%, exceeding their target bandwidth of 16% to 17%.
- Strong cash flow was reported at SEK5.5 billion with a cash conversion rate of 103%, indicating efficient cash management.
- Assa Abloy AB (ASAZF) completed five acquisitions in the quarter, contributing to a 5% net growth through acquisitions.
- The company saw strong sales growth in the Global Technologies division and Americas, with significant contributions from non-residential segments in North America and Europe.
- Sales declined in the EMEIA and Asia Pacific regions, with a notable double-digit negative growth in Greater China.
- The residential market remains challenging, particularly in North America, due to high interest rates and slow recovery in Europe despite ECB rate cuts.
- Currency headwinds negatively impacted sales by 8%, affecting overall revenue growth.
- The company faces challenges in the industrial segment of Entrance Systems, with only small sales growth in service due to a shortage of service technicians.
- There is concern over potential impacts from import tariffs in South America, particularly affecting Brazil and Mexico.
Good morning, everyone, and welcome to the presentation of ASSA ABLOY's Q2 report in 2025. My name is Björn Tibell. I'm heading Investor Relations. And joining me here in the studio are ASSA ABLOY's CEO, Nico Delvaux; and our CFO, Erik Pieder.
We'll start now as usual with a summary of the report before we open up for your questions, and then we will round up in about one hour's time. So with that, the floor is yours, Nico.
Thank you, Björn, and also good morning from my side. we can report good numbers for Q2. We had a strong overall performance with a good organic growth of 3%. A low 2% price, high 1% volume. So it's also good to see now that we have for the second quarter in a row, again, positive organic volume growth.
We have seen good organic sales development of strong sales growth in Global Tech, good sales growth in Americas and a small sales
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
