Home Article An uncertain political climate

An uncertain political climate

An uncertain political climate ASSA ABLOY maintains growth despite challenging conditions

Residential

By Ken Showers, Managing Editor

Updated 2:29 PM CST, Thu February 13, 2025

An uncertain political climate

STOCKHOLM — ASSA ABLOY CEO Nico Delvaux believes the company’s “decentralized organization” will help it weather an uncertain political climate that includes U.S. tariffs on steel imports. 

“I would say we also continue to live in an uncertain political climate where potential tariffs come and go,” Delvaux said during a recent conference call to discuss the company’s fourth quarter financial results. “That's something we have to live with and therefore we are still convinced that our decentralized organization helps us to really take decisions on at a local level. We believe (that) gives us a competitive advantage and we are ready to continue to invest there where we see opportunities and we are ready to cut costs where we don’t see the market recovering.” 

Examining the fourth quarter financial results at a glance: Net sales increased by 7% to SEK 39,575 M (36,970), with organic growth of 0% and acquired net growth of 6%. Organic sales growth was strong in Global Technologies, good in the Americas, and stable in EMEIA. However organic sales declined in Entrance Systems and declined significantly in Asia Pacific. 

Other challenges facing ASSA ABLOY stem from market conditions, including a soft housing market. Delvaux says.  

“Residential is still challenging with interest rates not going down fast enough, and then also the logistic vertical still on a lower level, affecting our industrial segment business for loading docks in entrance systems,” he said. 

A big highlight in the fourth quarter: Eight acquisitions with combined annual sales of more than SEK 1 bn, including Lawrence Doors and Premier Steel Doors and Frames, an acquisition in the Americas that adds complementary products for ASSA ABLOY’s core business.  

Additional financial stats for the quarter: 

  • Operating income1 (EBITA) increased by 15% to a record SEK 6,898 M (6,008) with an operating margin of 17.4% (16.2). 

  • Operating income1 (EBIT) increased by 14% and amounted to a record of SEK 6,529 M (5,722), with an operating margin of 16.5% (15.5). 

  • Net income1 amounted to a record SEK 4,214 M (3,969). 

  • Earnings per share1 amounted to SEK 3.81 (3.56). 

  • Record operating cash flow of SEK 8,010 M (7,315). 

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