Securitas sales top SEK 38.566 billion as shares fall 7.04%
Key Facts
Securitas reported third-quarter results for July to September on October 23, 2026, at 08:00, recording total sales of SEK 38.566 billion, compared with SEK 38.521 billion a year earlier. Sales were above the FactSet estimate of SEK 38.320 billion, based on six estimates. But the picture was mixed: operating income before amortization was SEK 3.161 billion, matching the FactSet estimate based on four estimates, while the adjusted operating margin and adjusted earnings per share fell below analyst consensus, according to Investing.com. The company’s website showed that its Class B share fell 7.04% to SEK 153.20 at 9:35 a.m. on the day results were announced. The figures highlight a divergence between revenue growth and stable operating income on one hand, and pressure on margins and cash conversion on the other.
The operating margin was 8.2%, up from 8.1% in the same quarter a year earlier, while the adjusted operating margin was 8.2%, compared with 8.3% a year earlier, below the quarter’s 8.3% consensus, according to Investing.com. Operating income before amortization rose to SEK 3.161 billion from SEK 3.107 billion, but earnings per share before items affecting comparability fell to SEK 3.28 from SEK 3.34. Reported earnings per share were SEK 3.68, compared with SEK 1.09 a year earlier. In the first nine months of the year, sales fell to SEK 112.620 billion from SEK 116.691 billion, while earnings per share before items affecting comparability rose to SEK 8.69 from SEK 8.48. The increase in reported quarterly earnings per share alone therefore does not reflect the trend in the adjusted measure or across the first nine months.
Organic growth varied by region, with North America at 3% and Ibero-America at 5% in the quarter, both above estimates, according to Investing.com. Europe, by contrast, grew 2%, below consensus of 3%. The chief executive said European airport activity weighed on organic growth, adding that the region’s airport security business reduced the group’s adjusted operating margin by 0.2 percentage points during the quarter. Management linked its caution in some markets and sectors to more selective purchasing behavior and longer decision cycles. It said that "demand trends remain somewhat cautious," extending the time needed to make purchasing decisions. These factors put Europe’s weakness and the margin pressure in the broader context of regional performance, without erasing the growth recorded in North America and Ibero-America.
Results in the Technology and Solutions segment point to a shift in the sales mix: its real sales rose 6% in the quarter, compared with 4% a year earlier, and its share of total sales increased to 35% from 33%. This improvement came as the adjusted margin remained below the prior-year level and analyst consensus. Over the first nine months, total sales declined compared with the same period in 2025, while adjusted earnings per share improved modestly. Net debt to EBITDA was 2.1 times at the end of September, compared with 2.2 times a year earlier. The company targets average annual earnings-per-share growth of 10% over the business cycle, a stated goal that extends beyond this quarter’s results.
Cash flow from operating activities fell to 82% of operating income in the third quarter, compared with 106% a year earlier. For the first nine months, the ratio was 71%, versus 74% in the same period of 2025. The company nevertheless said it remained well positioned to meet its full-year cash flow target of between 80% and 90% of operating income before amortization. Management also faces a near-term milestone for the government SCIS business, with the remaining contracts expected to be exited by the end of October 2026. The quarterly report was published on October 23 at 08:00 Central European Time, with presentation slides due at 09:00 and a conference call at 09:30. These dates put progress toward the cash flow target and completion of the contract exits among the key steps announced after the results.