ASSA ABLOY Issues Quarterly Report for Q1 2025

ASSA ABLOY reported its Q1 2025 results. Net sales increased by 8% to SEK 37,940 million ($3.944 billion), with organic growth of 2% and acquired net growth of 5%. Exchange rates affected sales by 1%. The company noted that organic sales growth was strong in Global Technologies, good in Americas, stable in EMEIA and Entrance Systems, while organic sales declined in Asia Pacific.

In addition, six acquisitions with combined annual sales of about SEK 3,600 million were completed in the quarter, while the divestment of the majority of Citizen ID was completed.

Operating income (EBITA) increased by 5% and amounted to SEK 6,051 million, with an operating margin of 14.9%. Operating cash flow amounted to SEK 2,424 million ($489 million), from SEK 3,096 million.

“The macroeconomic environment remains challenging, with geopolitical uncertainty fueled by tariff concerns and high interest rates,” Nico Delvaux, ASSA ABLOY’s president and CEO, said. “However, our strong exposure to the aftermarket continues to demonstrate its value, contributing to 2% organic sales growth in the first quarter.

“Acquisitions net contributed 5% to sales growth, while currency effects were small at 1%. With our agile organization and strong local presence, we are well-positioned to adapt to changing market conditions and prioritize growth opportunities while taking cost actions where needed,” Delvaux observed.

“Sales were primarily driven by strong organic sales growth of 8% in Global Technologies, supported by strong growth in HID and very strong growth in Global Solutions,” added Delvaux. “Americas had good organic sales growth of 2% with continued strong growth in the North America Non-Residential segment and Latin America. The North America Residential segment saw sales decline, where persistently high interest rates and uncertainty weighed on consumer confidence.

“EMEIA’s organic sales were flat in the quarter, as strong growth in Central Europe and in the Nordics was offset by sales declines in South Europe and the Middle East. Entrance Systems’ organic sales were also flat, impacted by continued weakness in the Industrial and Doors & Automation segments. The Perimeter Security and Pedestrian segments report very strong and good growth, respectively. Asia Pacific’s sales declined by 5% with continued weak demand in the Chinese residential market. The operating cash flow of SEK 2,424 million decreased by 22% versus last year and was affected by inventory build-up in preparation for tariffs.”