Analysis of Securitas AB's Interim Report for Q2 2025
Securitas AB is pleased to present its interim report for the second quarter of 2025, marked by notable achievements in both operational performance and overall financial stability.
Q2 2025 Key Financial Highlights
April to June 2025
- Total sales reached MSEK 38,564, showing a slight decrease from MSEK 40,638 previously.
- Organic sales growth remained steady at 5%.
- Real sales growth within technology and solutions stands at 4%, slightly below expectations.
- Operating income before amortization is reported at MSEK 2,798, similar to the previous year.
- The operating margin improved to 7.3% compared to 6.9% last year.
- Earnings per share climbed to SEK 2.56, showing a positive trend from SEK 2.28 in the same period.
- Cash flow from operating activities exhibited a remarkable increase to 106%, up from 60%.
- The decision to close the government business within Securitas Critical Infrastructure Services (SCIS) is expected to positively influence future margins.
January to June 2025
- Total sales for the first half were MSEK 78,170, which is slightly down from MSEK 79,898.
- Organic sales growth achieved was 4%, down from 6%.
- Real sales growth in technology and solutions reached 5%, matching the previous year's performance.
- Operating income before amortization was MSEK 5,323, an increase from MSEK 5,158 last year.
- The operating margin sat at 6.8%, an improvement from 6.5% year-over-year.
- Earnings per share grew to SEK 4.86 from SEK 4.12.
- The net debt/EBITDA ratio strengthened to 2.4 from 2.9.
- The cash flow from operating activities significantly improved to 56% as compared to 26% last year.
This quarter marks a strategic adjustment as the government business within SCIS will be phased out, facilitating enhanced profitability moving forward.
Leadership Insights
Comments from the President and CEO
A good quarter across all segments.
Magnus Ahlqvist, President and CEO of Securitas, highlighted that the second quarter performance demonstrated a robust operating margin supported by all business segments. This performance reflects a dedicated approach and clear strategic direction yielding substantial results.
Growth in organic sales, particularly in North America, highlights the company's progress, although the anticipated real sales growth in technology undershot expectations. Nevertheless, the company reports a healthier operating cash flow, reinforcing its stable financial standing.
Addressing Global Challenges
In an era characterized by global uncertainties, Securitas executes a long-term partnership approach, fortified with significant security expertise and cutting-edge technologies. This strategy positions Securitas as a trusted partner in addressing complex risk landscapes for clients.
The organizational strength lies in delivering localized services, thereby minimizing the impact of global market fluctuations. The second quarter saw no major disruptions, allowing for consistent and reliable service delivery.
Profitability and Strategic Focus
Substantial improvements in profitability were noted in the technology, solutions, and security services sectors. The strategy embraces enhancing the commercial offerings, achieving cost efficiencies, and actively managing service contracts.
Renewal of key airport security contracts in Europe during the quarter has also contributed to maintaining strong profit margins. Furthermore, a business optimization program is in progress, aiming for MSEK 200 in annualized savings by 2025.
Importantly, the strategic closure of the SCIS government business aligns with Securitas's long-term vision, steering the company toward greater profitability. Full completion of this transition is expected by late 2026.
Commitment to Shareholder Value
The company is committed to creating long-term value for its shareholders, as evidenced by a remarkable 25% increase in earnings per share for the quarter. Securitas is steadfast in its target of achieving an operating margin of 8% as it heads into the latter part of 2025.
Magnus Ahlqvist, President and CEO
Invitation to Analysts and Investors
We invite analysts and media representatives to join a conference call to discuss the interim report. The conference will feature insights from President and CEO Magnus Ahlqvist and CFO Andreas Lindback.
Contact Information
For any inquiries, please reach out to Micaela Sjökvist, Vice President of Investor Relations at +46 76 116 7443.
About Securitas
Securitas is a prominent global provider of safety and security solutions, distinguishing itself with layered technology and a client-centered approach. With a dedicated workforce of approximately 336,000 employees across 44 markets, Securitas is committed to safeguarding client interests and adapting to evolving security needs.
Financial Goals
Ensuring sustainable growth, Securitas aims for:
- 8–10% annual growth in technology and solutions sales.
- 8% group operating margin by end of 2025.
- Maintain a net debt to EBITDA ratio below 3.0x.
- Operating cash flow efficiency of 70–80% of operating income before amortization.
Frequently Asked Questions
What were the total sales for Securitas AB in Q2 2025?
Total sales for the second quarter reached MSEK 38,564.
How did organic sales growth perform in H1 2025?
Organic sales growth was 4% for the first half of 2025.
What is Securitas's operating margin goal?
Securitas aims for an operating margin of 8% by the end of 2025.
Who is the CEO of Securitas AB?
Magnus Ahlqvist serves as the President and CEO of Securitas AB.
How many employees does Securitas have globally?
Securitas has approximately 336,000 employees working in 44 markets worldwide.
