Securitas AB (publ)

Reported organic sales growth was 0%, or 3% excluding the government business to be closed down within SCIS. Adjusted operating margin improved to 7.5%, or 7.6% excluding that government business, and operating income adjusted for currencies increased 3%. EPS real change growth was 14% in Q2, or 7% excluding IAC, and 11% for the first half excluding IAC. Cash flow in Q2 was SEK 2.5 billion, equal to 87% of operating income; free cash flow was SEK 1.7 billion, and net debt was SEK 32.7 billion with net debt/EBITDA at 2.2x. For 2026, management guided finance net below SEK 1.6 billion, tax rate at 27.5% excluding the capital gain from Global Elite Group, full-year cash flow of SEK 800 million to SEK 850 million, and full-year IAC program cost of SEK 225 million to SEK 250 million.

Magnus Ahlqvist framed the quarter as one with “clear positive developments” and said the company is shifting from heavy transformation work toward profitable growth. He emphasized that technology, digital, and intelligence-led capabilities are increasingly central to winning in the security industry, and said the technology momentum and backlog give him confidence heading into the second half. His tone was constructive and strategic, with a clear focus on commercial execution, mix shift, and capital allocation discipline.

Matteo Dall’Ora said the quarter benefited from improved margins, lower financing costs, and strong cash generation. He highlighted IAC of minus SEK 46 million in the quarter, the full-year 2026 program cost estimate of SEK 225 million to SEK 250 million, finance net of SEK 355 million in Q2, and expected finance net below SEK 1.6 billion for 2026 versus SEK 1.8 billion in 2025. He also pointed to net debt of SEK 32.7 billion, leverage of 2.2x EBITDA, capex around 2.8% of sales, and expected normalization of receivables in Q3 after timing effects in North America and Norway.

Analysts focused on three issues: the U.S. margin, the SCIS close-down, and the strength of technology order intake/backlog. Management said North America margins were mainly hurt by the loss of a large temporary Pinkerton contract, but profitability should remain at a “good level” in the second half; on SCIS, the shutdown is slightly ahead of plan and should be completed by year-end. On technology, management said order entry and backlog strength are broad-based across regions, especially in technology installations, and that conversion to revenue typically takes about 4, 5, or 6 months.