Lock maker Assa Abloy's Q1 operating profit rises as expected (updated)
28/04/2026 07:23
Recasts with comments on price increases, background, share move By Greta Rosen Fondahn STOCKHOLM, April 28 (Reuters) - Assa Abloy ASSAb.ST is hiking prices as raw material and other costs rise, the world's largest lock maker said on Tuesday, after it reported first-quarter operating profit broadly in line with expectations. "You can name whatever, steel, copper, zinc, aluminium - everything is up. On top of that, we have logistics cost inflation, labour inflation, general inflation," CEO Nico Delvaux told a call with analysts and media. "So yes, we continue to increase prices." • Delvaux said he expected price increases "north of 2%" for 2026. • Operating profit at the group, which competes with Allegion ALLE.N and Dormakaba DOKA.S, rose to 5.46 billion Swedish crowns ($590.47 million) from 4.31 billion a year earlier. Analysts polled by LSEG had on average forecast a profit of 5.47 billion crowns. • Adjusted for one-off items, operating profit fell 3%, missing expectations slightly, analysts said. • "As we wrap up the first quarter of 2026, increased global geopolitical tensions and macroeconomic uncertainty have impacted many customer segments and geographies," Delvaux said in a statement. •Sales rose 2% on an organic basis to 35.75 billion crowns. Analysts had expected 36.16 billion crowns. • Assa Abloy generates roughly half of its revenue in the U.S., where high borrowing and materials costs have hampered home building in recent years. • It said sales in its North America Residential segment had declined in the quarter, impacted by elevated interest rates, a challenging housing market and effects from snow storms. • Last year, Assa Abloy said it was compensating for tariffs with price hikes. • Shares were down around 1% at 0800 GMT, with the stock up 1% year to date and 25% in the past 12 months. ($1 = 9.2468 Swedish crowns) (Reporting by Greta Rosen Fondahn. Editing by Terje Solsvik and Mark Potter) ((greta.rosenfondahn@thomsonreuters.com))