ASSA ABLOY Ends 2025 with Record Sales Amid Currency Headwinds

Event summary

  • ASSA ABLOY reported Q4 2025 net sales of SEK 38.3 billion, down 3% YoY due to -10% currency effects, despite 4% organic growth.
  • Full-year 2025 sales reached SEK 152.4 billion, up 1% YoY, with EBIT margin expanding to 16.2% from 15.3% in 2023.
  • Completed seven acquisitions in Q4 2025, including InVue and Sargent & Greenleaf, totaling SEK 1.2 billion in annual sales.
  • Operating cash flow declined 2% YoY to SEK 7.8 billion, with cash conversion at 137% of EBIT.
  • Board proposes 8.5% dividend increase to SEK 6.40 per share for 2025.

The big picture

ASSA ABLOY's record 2025 results highlight its ability to expand margins through acquisitions and operational discipline, even amid tariffs and geopolitical uncertainty. The company's strategic focus on digital access solutions and global scale positions it well in a consolidating security market, though currency volatility and regional disparities present near-term challenges. With 23 acquisitions in 2025 and a target EBIT margin of 16-17%, execution on integration and pricing power will be critical.

What we're watching

Geographic Disparities
How ASSA ABLOY will address the -2% organic decline in Asia Pacific, particularly the weak Chinese residential market, while sustaining 9% growth in Global Technologies.
Integration Challenges
Whether the company can maintain its 39% organic drop-through rate while absorbing 23 acquisitions in 2025, given the ~60 bps annual margin dilution from acquisitions since 2023.
Currency Hedging
The pace at which ASSA ABLOY can mitigate -10% currency headwinds in Q4 2025, particularly in EMEIA and Americas where organic growth was strong.