Assa Abloy's Q1 Profit Rises as Expected, But Geopolitical Tensions Impact Sales
Q1 2026 Financial Results and Market Impact
Operating Profit Performance
STOCKHOLM, April 28 (Reuters) - Assa Abloy, the world's largest lock maker, reported a rise in operating profit broadly in line with expectations for the first quarter on Tuesday, but said increased "geopolitical tensions" had impacted many customer segments and geographies.
Year-on-Year Comparison
• Operating profit at the group, which competes with Allegion and Dormakaba, rose to 5.46 billion Swedish crowns ($590.47 million) from 4.31 billion a year earlier.
Analyst Expectations
• Analysts polled by LSEG had on average forecast a profit of 5.47 billion crowns.
Adjusted Profit Figures
• Adjusted for one-off items, however, operating profit fell 3%.
Impact of Geopolitical Tensions and Macroeconomic Uncertainty
CEO Statement
• "As we wrap up the first quarter of 2026, increased global geopolitical tensions and macroeconomic uncertainty have impacted many customer segments and geographies," CEO Nico Delvaux said in a statement.
Sales Performance and Regional Analysis
Organic Sales Growth
• Sales at the group grew 2% organically to 35.75 billion crowns, while analysts had expected 36.16 billion.
North America Segment
Revenue Distribution
• The lock maker generates roughly half of its revenues in the U.S., where high costs for borrowing and materials have hampered home building in recent years.
Residential Segment Challenges
• It said sales in its North America Residential segment had declined in the quarter, impacted by elevated interest rates, a challenging housing market and effects from snow storms.
($1 = 9.2468 Swedish crowns)
(Reporting by Greta Rosen Fondahn, editing by Terje Solsvik)
