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Assa Abloy third-quarter earnings beat forecast, helped by pricing and cost control - Finance news and analysis from Global Banking & Finance Review
Finance

Assa Abloy third-quarter earnings beat forecast, helped by pricing and cost control

Published by Global Banking & Finance Review

Posted on October 27, 2026

2 min read

· Last updated: October 27, 2026

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Assa Abloy Beats Q3 Forecasts with 11% Profit Growth and Cost Efficiencies

Q3 2023 Financial Results and Strategic Initiatives

Stronger-than-Expected Earnings

Oct 27 (Reuters) - Sweden's Assa Abloy, the world's largest lock maker, on Tuesday reported stronger-than-expected third-quarter earnings, driven by price realization and cost efficiencies.

Restructuring and Optimization Programs

The group, which competes with Allegion and Dormakaba, said its restructuring was progressing as planned, with a new manufacturing optimization program due to launch in the fourth quarter.

Financial Highlights

  • Operating profit at the group level increased by 11% in the July-September period to 7.10 billion Swedish crowns ($713.39 million), beating the 6.94 billion crowns forecast by analysts polled by LSEG
  • Its revenue grew 4% organically in the quarter from the year-ago period

Regional and Segment Performance

  • Organic growth was strong in the Americas, partly driven by strong growth in the non-residential segment, and an improvement in the North America residential segment

Acquisitions and Divestments Impact

  • The group, which combines organic growth with an active acquisition strategy, expects that completed acquisitions and divestments will have an effect of 2% on sales in the fourth quarter versus the same period last year

Manufacturing Footprint Program

  • Assa Abloy's new manufacturing footprint program will entail closure of factories, warehouses and offices taking place over a period of about two years
Reporting and Editorial Credits

(Reporting by Alexander Klyve Gudbrandsen in Gdansk; editing by Izabela Niemiec)

Key Takeaways

  • Operating profit rose 11% year‑on‑year to SEK 7.10 billion, above the SEK 6.94 billion analyst consensus (uk.marketscreener.com)
  • Organic revenue grew 4%, with particularly strong performance in the Americas’ non‑residential segment and improving North American residential demand (sec.gov)
  • The company’s restructuring and manufacturing footprint optimization program is progressing, with a global program launching in Q4 aiming to deliver cost savings and efficiency over two years (sec.gov)

References

Frequently Asked Questions

What drove Assa Abloy's higher third-quarter earnings?
Stronger-than-expected earnings were driven by price realization and cost efficiencies.
How much did Assa Abloy's operating profit increase in Q3?
Operating profit increased by 11% to 7.10 billion Swedish crowns.
What organic growth did Assa Abloy experience in Q3?
The company saw 4% organic revenue growth, with strong growth in the Americas.
What restructuring activities is Assa Abloy undertaking?
Assa Abloy is progressing with restructuring and launching a new manufacturing optimization program.
How will acquisitions and divestments affect Assa Abloy's future sales?
Completed acquisitions and divestments are expected to impact sales by 2% in the fourth quarter.

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