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Investing.com -- Assa Abloy AB (STO:ASSAB) on Tuesday reported solid third-quarter results with organic revenue growth of 3% to SEK38.1 billion, in line with consensus expectations of 3.3% growth to SEK38.2 billion.
The company’s EMEIA division outperformed expectations with 4% organic revenue growth, significantly ahead of the 1.6% consensus forecast, driven by strong performance in the Nordic region. Entrance Systems also exceeded projections with 4% organic growth compared to the expected 3.5%, showing growth across all segments.
Meanwhile, the Americas division posted 3% organic growth, slightly below the 3.8% consensus, as non-residential growth accelerated but residential markets declined, still affected by high mortgage rates. Global Technologies achieved 3% organic growth versus the 4.4% forecast, with positive development in both HIID and Global Solutions segments.
APAC was the only region showing negative performance with a 4% organic revenue decline, worse than the expected 0.7% drop, due to weakness in China and Southeast Asia, though Pacific and Northeast Asia showed good growth.
Adjusted EBIT reached SEK6,416 million, 1% above consensus expectations of SEK6,350 million, resulting in a record margin of 16.8% compared to the expected 16.6%. EMEIA, APAC, and Global Technologies exceeded EBIT forecasts by 3%, 5%, and 7% respectively, while Americas missed by 2%.
Operating cash flow strengthened to SEK6,989 million from SEK6,341 million a year ago, supported by strong increases in EMEIA (28% growth), Americas (15% growth), and Global Technologies (24% growth). The company achieved excellent cash conversion of 125%.
Earnings per share increased 3% to SEK3.73 from SEK3.63 in the same period last year.
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