Q4 2025 Securitas AB Earnings Call Transcript
Key Points
- Securitas AB (SCTBF) reported strong results for Q4 and the full year 2025, with organic growth of 3% in the quarter.
- The operating margin improved to 8% and 8.2% adjusted, marking 20 consecutive quarters of improvement.
- North America achieved a record 10% operating margin, driven by good portfolio development and price increases.
- The company announced the acquisition of Life Raft, a leading provider of threat intelligence, to enhance its strategic capabilities.
- Securitas AB (SCTBF) delivered strong cash flow, with operating cash flow at 88% for the full year and a net debt to EBITDA ratio improved to 2.1.
- The growth in security services was negatively impacted by the closure of the SEAS business, affecting overall growth figures.
- The European segment faced challenges with active portfolio management negatively impacting growth.
- The company is still in the process of closing down the government business within SEIS, which is expected to continue impacting results until the end of 2026.
- There are concerns about the sustainability of the positive working capital impact on free cash flow as the company moves into 2026.
- The technology and solutions growth, while improved, is still below the 8-10% target, indicating room for further improvement.
Good morning and welcome everyone. Andreas and I are proud to report strong results for Q4 and for the full year 2025.
So let us go straight to some of the performance highlights.
The organic growth in the quarter was 3%, and this was supported by 6% growth in technology and Solutions. We had a good finish to the year in technology and solutions with 2% improvement sequentially, and the adjusted organic growth for the group, and that means when you exclude the close down of the SCAS business was 4%.
And now to something important. The operating margin was 8% and 8.2% adjusted in the quarter thanks to strong delivery across the entire business.
North America achieved a 10% operating margin in the quarter, and Europe delivered another quarter with more than 8%.
And we have improved the operating margin now 20 quarters in a row and are delivering on the 8% target that we communicated 3.5 years ago.
EPS real exchange, excluding ISC was also strong at 18%.
And we had continued
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