Q4 2025 Assa Abloy AB Earnings Call Transcript
Key Points
- Assa Abloy AB (ASAZF) reported a strong organic sales growth of 4% in Q4 2025, with significant contributions from Global Tech and the Americas.
- The company achieved a record EBIT margin of 16.8% and an EBITA margin of 17.9%, indicating strong operational execution.
- Cash conversion was robust at 137% for the quarter, highlighting effective working capital management.
- The shift from mechanical to electromechanical products continues, with an 8% organic sales growth in electromechanical products.
- Assa Abloy AB (ASAZF) completed seven acquisitions in the quarter, contributing to a net acquisition growth of 3%.
- The company faced a 10% negative impact on sales due to unfavorable foreign exchange rates, particularly the weak dollar against the strong SEK.
- Sales in the APAC region declined by 2%, with significant challenges in Greater China showing high double-digit negative growth.
- The residential market remains challenging, with no immediate recovery expected in new builds due to high interest rates.
- The logistics market in Europe is underperforming, with no signs of recovery, unlike the slower U-shaped recovery seen in North America.
- The Americas division experienced a 50 basis points dilution in EBIT margin due to acquisition-related costs.
Good morning, everyone, and welcome to the presentation of Assa Abloy's Q4 report for 2025. My name is Bjorn 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 will now, as usual, start this conference with a short summary of the report and then open up for your questions.
And with that, I'd like to hand over to you, Nico.
Thanks, Bjorn, and also good morning from my side. We can report a strong end of a very good year for Assa Abloy. We had a good organic sales development in Q4, an organic growth of 4%. We have strong growth in Global Tech and Americas, good sales growth in EMEIA and in Entrance Systems and a sales decline in APAC, mainly again related to depressing market situation in Greater China.
A good organic sales complemented with also good growth through
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