Securitas AB (publ) (SECU_B) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to our Q3 report. We continue to develop on a good path, execute on our strategic focus areas, and are glad to report a solid set of results for the third quarter. The organic growth in the quarter was 3%, and North America and Iberia America both contributed with solid growth. And now to a highlight. The operating margin was 8.1% in the quarter. We had solid improvements across all segments, as well as in the services and technology and solutions business lines. And as announced last quarter, we are closing down the government business within critical infrastructure services. And adjusted for this business, the organic sales growth was 4%, and the operating margin was 8.3%. EPS real change was strong at 19%. And the operating cash flow is above 100% in the quarter, and we continued to improve the leverage, and the net debt to EBITDA ratio is now at 2.2. The business optimization program that we initiated at the beginning of this year is contributing, and the vast majority of the cost savings have now been executed. So shifting then to the performance, just for an overview in the business lines and the segments. And as stated, we are recording significant margin improvements in both business lines. Continued strong technology and solutions, margin development with 50 basis points to 11.7. And the real sales growth in technology and solutions was 4% in the quarter. This is below our target, but we have a strong offering, and we have taken actions to increase the focus on client engagement and commercial development, and I expect these actions to generate stronger momentum in the coming quarters. The margin in security services improved 30 basis points to 6.9%, and this was supported by high margin on new sales, portfolio management,...