Electromechanical and access-related solutions remained a key contributor to ASSA ABLOY’s results.
ASSA ABLOY (OTCMKTS: ASAZY) closed out 2025 with a strong fourth quarter, underscored by continued momentum in electromechanical security, access control technologies and non-residential markets, even as residential demand and certain global regions remained under pressure.
Reporting on the company’s Q4 2025 earnings call, President and CEO Nico Delvaux highlighted a 4% organic sales increase for the quarter, complemented by 3% net growth from acquisitions. “The shift from mechanical to electromechanical continues, and we have seen an electromechanical organic sales growth of 8% in our regional divisions,” Delvaux said, reinforcing the company’s long-term security technology strategy.
Technology and commercial markets lead
Security-oriented technology businesses were a major contributor to results. The Global Technologies division posted 9% organic growth, driven by strong performance in HID and Global Solutions, and delivered an 18.9% EBIT margin.
Delvaux described the quarter as “extremely good” for Global Technologies, noting that performance came despite significant currency headwinds. Recent acquisition InVue, which focuses on secure display solutions for retail environments, contributed positively to margins.
Non-residential security demand also remained robust. Delvaux said ASSA ABLOY continued to see “good momentum on the non-residential side, on the commercial side… as well on the institutional side” across North America, Europe, and Oceania. In contrast, residential security markets remained subdued, particularly in regions where interest rates stayed elevated.
Regional security market trends
In the Americas, organic sales grew 5%, with “strong high single-digit sales growth for the North America non-residential segment,” according to Delvaux. Latin America also delivered strong growth, while North American residential sales were stable.
Europe posted 3% organic growth, supported by strength in the Nordics and Central Europe. However, the U.K. and France weighed on results due to delayed commercial projects and a weak residential environment. In Asia-Pacific, results were mixed: strong growth in Southeast Asia and the Pacific was offset by high double-digit declines in Greater China.
The logistics and industrial verticals showed early signs of recovery in North America, though Delvaux cautioned it was “more a U-kind of recovery, slower recovery,” while Europe’s logistics market remained weak.
Product innovation and security projects
ASSA ABLOY continued to emphasize innovation within mature security categories. Delvaux highlighted a new range of garage door openers integrated with digital door locks and home automation ecosystems. “Our R&D team still found ways to really differentiate… with a unique security feature,” he said.
The company also cited several notable security-centric project wins, including a large service contract for industrial doors at Circle K facilities in Germany, a major U.S. retail deployment of secure electronic display units following the InVue acquisition, and a public transportation access project in Stockholm that demonstrated equipment reliability in extreme weather conditions.
Security-focused M&A strategy continues
ASSA ABLOY remained active on the acquisition front, completing 23 acquisitions in 2025, representing approximately SEK 6 billion in annualized sales. Two U.S. acquisitions were particularly relevant to security professionals.
Sargent and Greenleaf, a manufacturer of high-security mechanical and electronic locking solutions and safe hardware, strengthens ASSA ABLOY’s access control portfolio in the Americas. “Really strengthening our access portfolio for the Americas,” Delvaux said.
International Door Products adds fire-rated steel door frames and doors, expanding ASSA ABLOY’s ability to deliver more complete, compliant security openings for commercial and institutional projects.
CFO Erik Pieder emphasized disciplined execution and investment in security technologies. Operating leverage remained strong, supported by pricing, volume growth, and operational efficiencies, while the company continued investing in R&D and sales.
“SG&A is negative with 50 basis points, but this comes from investment in R&D as well as investments in our sales organization,” Pieder said, underscoring the company’s commitment to long-term security innovation.
Cash conversion reached 137% in Q4 and 106% for the full year, giving ASSA ABLOY flexibility to continue acquisitions and technology investments. The board proposed a dividend of SEK 6.4 per share, reflecting confidence in sustained performance.
Despite uneven global conditions, Delvaux expressed confidence in ASSA ABLOY’s decentralized model and security-focused strategy. “Whatever the market conditions come to us, our decentralized model, our proven strategy, we are convinced that we will also continue to deliver good results going forward,” he said.
*This article was created with the help of generative AI tools and edited by our content team for clarity and accuracy.