“Good quarter across all segments” reports Securitas for Q2 2025

April-June 2025

• Total sales: MSEK 38 564 (40 638)
• Organic sales growth: 5% (5)
• Real sales growth within technology and solutions: 4% (7)
• Operating income before amortisation: MSEK 2 798 (2 801)
• Operating margin: 7.3% (6.9)
• Earnings per share: SEK 2.56 (2.28)
• Earnings per share before IAC: SEK 2.79 (2.60)
• Cash flow from operating activities: 106% (60)
• The Government business within SCIS is to be closed down. Group operating margin adjusted for this business: 7.5% (7.1)

January-June 2025

• Total sales: MSEK 78 170 (79 898) 
• Organic sales growth: 4% (6) 
• Real sales growth within technology and solutions: 5% (7) 
• Operating income before amortisation: MSEK 5 323 (5 158) 
• Operating margin: 6.8% (6.5) 
• Earnings per share: SEK 4.86 (4.12) 
• Earnings per share before IAC: SEK 5.15 (4.72) 
• Net debt/EBITDA ratio: 2.4 (2.9)
• Cash flow from operating activities: 56% (26)
• The Government business within SCIS is to be closed down. Group operating margin adjusted for this business: 7.1% (6.7)

Magnus Ahlqvist observed: “We delivered a strong operating margin of 7.3% (6.9) in the second quarter, which is in line with our plan. The performance was supported by all business seg­ments and the operating margin improved in both security services and technology and solutions.”

Ahlqvist continued: “Organic sales growth was 5% with improved growth in North America. Real sales growth in technology and solutions was 4%, which was below our expectations. Operating cash flow improved signifi­cantly compared to last year and our balance sheet remains strong.”

Resilient business

Further, Ahlqvist noted: “In a time marked by global uncertainty and geopolitical risks, clients navigate a complex risk landscape. Securitas’ long-term partnership approach, supported by deep security expertise, a global presence and Artificial Intelligence-enabled digital capa­bil­ities, sets us apart as the preferred partner in the market.”

According to Ahlqvist, Securitas’ business model has consistently demonstrated its strength by delivering local security services close to its clients, which limits exposure to global trade shifts and macro volatility. Despite ongoing uncertainty, there was no material impact from shifts in the global trade landscape in the second quarter. “We remain vigilant,” asserted Ahlqvist, “closely monitoring developments together with our clients.”

Solid cost leverage

Securitas has “materially improved” prof­itabil­­ity in both technology and solutions, as well as security services. In tech­nol­ogy and solutions, the company has enhanced its commercial offer, engendering solid cost leverage on decent growth and continued cost efficiency gains.

“In our security services business,” affirmed Ahlqvist, “profitability was supported by active portfolio management and substantially better margins on new sales from our improved client offer. We have consistently addressed non-performing contracts over the past several years. We’re intensifying these efforts to complete this work across Europe in the coming quarters. In the second quarter, we renewed several significant airport security contracts in Europe with healthy profitability thanks to our strengthened offer.”

Margin development

The ongoing business optimisation programme has contributed towards margin development in the second quarter and is on track to achieve MSEK 200 in annualised savings by the end of 2025.

“After having assessed different strategic options,” stated Ahlqvist, “we have decided to close down the Government business within SCIS as the business is not aligned with our long-term strategy. The process will positively impact the Securitas Group’s long-term profitability and we estimate that the process will be largely completed by the end of 2026. We remain committed to continuously refine our business portfolio in order to sharpen our long-term performance and competitive position.”