Will Margin Gains Amid Lower Sales Shift Securitas' (OM:SECU B) Investment Narrative?

• Securitas AB recently released third quarter 2025 earnings, reporting sales of SEK38.52 billion and net income of SEK625 million, both lower than the previous year.
• Despite year-on-year declines, the company achieved an operating margin above 8% and continued to strengthen operational cash flow and digital capabilities, highlighting progress in business optimization.
• We'll now explore how Securitas' sustained margin improvement and operational efficiency impact its overall investment narrative.

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Securitas Investment Narrative Recap

To invest in Securitas is to believe in the company’s ability to drive margin expansion through technology, operational efficiency, and portfolio optimization, even as top-line growth slows and key contract exits pose ongoing risks. The recent Q3 2025 results, featuring lower sales and earnings but sustained margin gains, do not materially alter the main catalyst: successful execution of business optimization programs. The most salient risk, exposure to further revenue pressure if additional portfolio reshaping is needed, remains in focus.

Among the company’s recent announcements, the update on the multi-currency revolving credit facility stands out. This facility not only refinances existing debt but also supports Securitas’ ongoing investments in AI and digital solutions, directly underpinning margin improvement and aligning with the company’s drive to scale higher-value services, a core catalyst for its investment case.

Yet, in contrast to robust progress on margin, exposure to contract risk and the fallout from portfolio changes is something investors should be aware of...

Read the full narrative on Securitas (it's free!)

Securitas' narrative projects SEK160.1 billion in revenue and SEK8.3 billion in earnings by 2028. This requires 0.0% annual revenue growth and an earnings increase of SEK2.7 billion from current earnings of SEK5.6 billion.

Uncover how Securitas' forecasts yield a SEK146.27 fair value, in line with its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span SEK146.27 to SEK283.50, reflecting widely differing opinions. As margin expansion is now a primary catalyst, you can benefit from reviewing several alternative viewpoints.

Explore 6 other fair value estimates on Securitas - why the stock might be worth just SEK146.27!

Build Your Own Securitas Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Securitas research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Securitas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Securitas' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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