Securitas AB (publ)

Reported Q2 organic sales growth was 0%, or 3% excluding the government business to be closed down; adjusted sales growth was 3%. Adjusted operating margin improved to 7.6% (7.5% on the reported income statement), up 10 basis points year over year excluding the closure business. Operating income adjusted for currencies increased 3%, and EPS real change grew 14% in Q2, or 7% excluding items affecting comparability; first-half EPS was up 11%. Revenue figures in SEK were not stated. Forward-looking guidance: management reiterated a full-year 2026 finance net below SEK 1.6 billion versus SEK 1.8 billion in 2025, a full-year tax rate of 27.5% excluding the capital gain, cash flow of SEK 800 million to SEK 850 million for 2026 related mainly to the SCIS close-down, and free cash flow conversion of 80% to 90% of operating income. At the CMD, the company also set a long-term ambition of around 4% to 6% organic growth, a 10% operating margin, and 10% average annual EPS growth over a cycle to 2030.

Magnus Ahlqvist framed the quarter as mixed but strategically encouraging: growth was below plan in some areas, yet Technology momentum and backlog were strengthening. He said the company has completed major portfolio actions and is now shifting from transformation toward profitable growth, with more focus on commercialization, cross-selling, upselling, and intelligence-led services. He also emphasized that the security industry is changing quickly and that the company believes it is well positioned with its technology and digital capabilities.

Matteo Dall’Ora highlighted that reported organic sales growth was 0%, but 3% excluding the government business to be closed down, with adjusted operating margin at 7.6% and operating income up 3%. He cited IACs of minus SEK 46 million in the quarter, a reduction of SEK 120 million year over year, and said full-year 2026 program costs are expected to be SEK 225 million to SEK 250 million. He also pointed to finance net of SEK 355 million, down SEK 124 million year over year, cash flow at SEK 2.5 billion and 87% of operating income, net debt of SEK 32.7 billion, and net debt-to-EBITDA of 2.2x. He said the AR build was temporary and should normalize in Q3, with capex around 2.8% of sales.

Analysts focused on three themes: the margin drag from Pinkerton in North America, the pace and cash effects of the SCIS closure, and the strength and timing of the Technology and Solutions backlog. Management said Pinkerton’s main issue was the loss of a large temporary contract, which hurt both revenue and profitability, and that they are working on both commercial recovery and cost optimization. On SCIS, they said the close-down is proceeding according to plan, slightly ahead of plan, with the majority of the expected SEK 800 million to SEK 850 million cash cost tied to that wind-down. On technology, management said order entry and backlog are broad-based across regions, especially in installation, and typically convert to revenue over about 4 to 6 months.