ASSA ABLOY AB (publ)

Record performance (good & surprising): Q3 2026 was a step-change quarter for ASSA ABLOY with sales ~SEK 41bn (+7% YoY; +4% organic; +2% net acquired; FX ~+1%). EBIT first time above SEK 7bn (+11% YoY), EBIT margin 17.4% (+60 bps YoY) and record EBIT margin / strong operating leverage (~50%). Cash flow +6% YoY (management called it the 2nd best ever). EBITDA margin 18.7% (+80 bps YoY); EPS +14% YoY. - Surprise/relative strength: Operating leverage and margins moved up materially despite mixed end-market conditions, implying execution and cost/price discipline (and MFP savings) are working.

Global demand + regional mix (good, but uneven): Management reported 7 quarters in a row of positive organic growth with acceleration. - Americas: Strong non-residential/commercial & institutional activity; residential still challenging due to higher rates; but R&R in North America bottomed with slight recovery. Organic growth +6%; EM segment mix supported margins. - EMEIA: Organic growth +5% and execution strength; margins trending toward the 16–17% target band. Needs-to-compliance (regulation) tailwind exists, but Nico estimated it supports roughly ~0.5% organic growth contribution, with broader spread expected beyond DACH/Nordics. - APAC: Organic -1% (mixed). Greater China still negative (they frame it as double-digit negative growth) while Southeast Asia is strong.

Margins: what’s driving them + where they expect continued improvement (opportunity): - Management emphasized price-to-cost flow-through and MFP (manufacturing footprint program) savings/VA-VE efficiencies as major margin drivers; direct material improved (~+80 bps) with true price/cost ~+60 bps. - Global Tech (largest margin story) delivered ~20%+ EBIT margin (specifically “excellent EBIT margin of 20%”). Management’s longer-cycle ambition for Global Tech is >16–17%, with expectation to be around ~18%. - Q4 outlook (near-term): CFO/CEO suggested Q4 should get another tailwind to price vs cost, though not necessarily on the same magnitude as Q3 (materials/indexes rising is a headwind). Overall guidance was qualitative: management expects a strong year.