Securitas beats quarterly earnings forecast, on track to hit its margin target (updated)

Securitas AB

06/11/2025 07:23

Adds shares in paragraph 2, details on margin and optimization plan in paragraphs 4-5, government business closure and economic environment in paragraphs 7-9

Nov 6 (Reuters) - Sweden's Securitas SECUb.ST, one of the world's largest security services providers, said it was on track to meet its 8% margin target in the second half of 2025 after third-quarter core earnings beat market expectations on Thursday.

Its shares rose 4.7% by 0807 GMT, on track for their biggest one-day rise since early February if the gains hold.

Securitas' operating earnings before amortization (EBITA) rose to 3.11 billion Swedish crowns ($330.3 million) in the quarter, above the 3.04 billion crowns expected by analysts in a company-provided poll.

That corresponded to a margin of 8.1%, which was supported by its business optimization programme.

Securitas is targeting annualized savings of 200 million crowns under the programme, with all measures to achieve this having been executed as of the end of the third quarter, it said.

"This is the result of strong strategic execution and performance across all business segments," CEO Magnus Ahlqvist said in a statement, highlighting the "important milestone" of exceeding an 8% margin in the third quarter.

The company began to close down its government business within Securitas Critical Infrastructure Services during the quarter, as announced in July. The process, which is progressing according to plan, should have a positive impact on long-term profitability and cash generation, it said.

Despite global economic uncertainty, Securitas saw no material impact from shifts in the global trade landscape in the quarter.

Around 40% of its revenue came from North America last year, but little of it was from imports that would be affected by U.S. tariffs, as the majority of its business is staff-driven.

($1 = 9.4155 Swedish crowns)

Sweden's Securitas sales per segment, 2024 https://reut.rs/48XBt8Z

(Reporting by Tomasz Kanik in Gdansk, editing by Milla Nissi-Prussak)

((Tomasz.Kanik@thomsonreuters.com))