Securitas AB Interim Report Q3 2025 January-September

Core Insights - The company achieved an operating margin exceeding 8% in Q3 2025, indicating strong strategic execution and performance across all business segments [3][4][6] - Organic sales growth was 4% for the first nine months of 2025, driven primarily by security services in North America, while growth in Europe was affected by active portfolio management [4][6] - The company is focused on improving profitability and cash generation, with a net debt to EBITDA ratio of 2.2, down from 2.7 [4][6][7] Financial Performance - Total sales for Q3 2025 were MSEK 38,521, down from MSEK 40,229 in the same period last year, with organic sales growth at 3% compared to 5% previously [4][6] - Operating income before amortization for Q3 2025 was MSEK 3,107, with an operating margin of 8.1%, up from 7.5% year-over-year [4][6] - Earnings per share for Q3 2025 were SEK 1.09, down from SEK 2.03, while earnings per share before items affecting comparability were SEK 3.34, up from SEK 3.05 [4][6] Strategic Initiatives - The company is in the process of closing down its government business within SCIS, which is expected to positively impact long-term profitability and cash generation [6][7] - A disciplined approach to managing underperforming security services contracts is being implemented, with expectations to complete this work across Europe by the first half of 2026 [6][7] - The ongoing business optimization program has been executed successfully, contributing to margin improvements and targeted annualized savings of MSEK 200 [6][7] Long-term Outlook - The company aims for an operating margin of 8% by the end of 2025, with a long-term ambition of over 10% [12] - The focus on technology and digital capabilities is yielding results, with 19 consecutive quarters of operating margin improvement [7][12] - The company is well-positioned to generate long-term value for shareholders, with a resilient business model that adapts to global uncertainties [5][7]