Q1 2025 Securitas AB Earnings Call Transcript
Key Points
- Securitas AB (SCTBF) reported a 3% organic growth in the first quarter, with an operating margin improvement of 40 basis points to 6.4%.
- The company achieved a 16% EPS growth in the first quarter, indicating strong financial performance.
- Securitas AB (SCTBF) completed the divestment of its aviation business in France, aligning with its strategic focus on higher-margin segments.
- The business optimization program is on track to achieve SEK200 million in savings by the end of the year.
- The company recorded a positive net change in its Guarding portfolio in North America, expecting stronger top-line momentum in the coming quarters.
- The performance of Paragon and Pinkerton negatively impacted the results, with Pinkerton showing weak performance in the quarter.
- The growth rate in technology and solutions was below target, with a need to rebuild commercial momentum.
- The termination of a large aviation contract in North America negatively impacted growth in the Guarding segment.
- The Securitas Critical Infrastructure Services (SCIS) business in the US has a deteriorating margin profile, prompting strategic reassessment.
- Active portfolio management in Europe and Ibero-America led to negative temporary impacts on growth and profitability due to addressing low-performing contracts.
Good morning, everyone, and welcome to our first quarter results presentation that Andreas and I are doing from our headquarter in Stockholm today. We're off to a good start to the year. So let us go straight to some of the highlights of the first quarter.
We delivered 3% organic growth in the quarter, and the operating margin improved 40 basis points to 6.4%. All business segments supported and we have realized improvements in operating margin in the security services and technology and solutions business lines. On the negative side, Paragon and Pinkerton hampered the results, and I will comment on those units later in the presentation. By looking at results growth, the EPS growth was 16% in the first quarter. Operating cash flow was 1% and the balance sheet remains strong.
Commenting a little bit on the business optimization program that we announced last quarter that is running according to plan, and we expect to achieve savings of SEK200 million by the end of this year. And also wanted to comment a little bit in
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