In This Article:
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Organic Growth: 4% for the Group, 6% in Technology and Solutions.
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Operating Margin: Improved to 7.3% for the quarter.
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Operating Cash Flow: 153% for the quarter, 84% for the full year.
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Net Debt-to-EBITDA Ratio: Reduced to 2.5 times.
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Dividend Proposal: Increase to SEK4.50.
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Security Services Growth: 3% in Q4.
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EBITDA Margin: 5.5% for the Group.
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Technology and Solutions Sales Growth: 6% in Q4.
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Operating Margin in Technology and Solutions: Improved to 11.6%.
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North America Organic Sales Growth: 2% in Q4.
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Operating Margin in North America: 9.3%.
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Europe Organic Sales Growth: 5% in Q4.
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Operating Margin in Europe: 7% in Q4.
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Ibero-America Organic Sales Growth: 3% in Q4.
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Operating Margin in Ibero-America: 7.5%, highest achieved in the region.
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Net Debt: SEK37.9 billion at quarter end.
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Free Cash Flow: SEK3.7 billion in Q4.
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CapEx: 2.4% of sales in Q4, 2.5% for the full year.
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EPS Real Change: 39% in Q4.
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Tax Rate: 26.3% for the full year.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Securitas AB (SCTBF) achieved 4% organic growth for the Group and 6% sales growth in Technology and Solutions, with an improved operating margin of 7.3%.
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The company reported a strong operating cash flow of 153% in the quarter and 84% for the full year, contributing to a net debt-to-EBITDA ratio of 2.5 times.
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The Board of Directors proposed a dividend increase to SEK4.50, reflecting confidence in the company's financial health.
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Securitas AB (SCTBF) successfully completed the STANLEY integration, enhancing its technology capabilities and enabling a focus on commercial development.
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The company initiated a business optimization program expected to generate annual savings of approximately SEK200 million, leveraging AI and digital platforms for efficiency.
Negative Points
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The termination of an Aviation contract in North America negatively impacted growth in services, with client retention slightly lower at 87%.
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System implementation challenges in Pinkerton affected Q4 results, though improvements are expected in future quarters.
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The hyperinflationary environment in Turkey contributed significantly to growth, indicating reliance on price-driven growth rather than volume.
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The divestment of the Aviation business in France is underway due to limited strategic opportunities, with the business performing below average margins.
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The company faces macroeconomic challenges in Europe, with potential impacts on organic growth and margins, particularly in Germany and France.