Securitas AB (publ)

Group performance (Q3 + 9M): modest growth, margin pressured by Europe aviation - Adjusted sales growth: +3% (reported organic sales growth 0%). - Adjusted operating margin: 8.2% (slightly up +10 bps vs last year; EPS +6% in the first 9 months). - Cash flow: healthy at 82% of operating income for the quarter; free cash flow SEK 2.0bn; YTD cash flow 71% (vs 74% prior year). - Key negative: European aviation materially hurt profitability—group aviation impact equals about ~20 bps on group margin (and group operating margin effectively flat in the quarter).

Geographic + business drivers: Technology & Solutions momentum vs Security services + aviation drag - Technology & Solutions share: increased to 35% of sales in Q3. - Real sales growth (T&S): +6% overall; North America T&S +7%, supported by record installation order entry/backlog growth. - Security services: +1% real growth in Q3 excluding the North America government/SCIS close-down impact. - Europe: organic growth +2%, but aviation airport security underperformed; Europe operating margin 8.1% (-30 bps YoY). - Ibero-America: stable performance; sales +5%, T&S +14%, margin 7.9% stable, but some margin held back by cost leverage in security services.

Aviation (Europe) specifics + expected improvement - Three main reasons vs Q3 last year: 1) Middle East flight demand reduction (~20% in key markets like Germany). 2) Contract structure change in Germany (price per passenger → fixed hourly) impacts peak summer profitability. 3) Challenging start-up of a new major Netherlands contract. - Management view: actions are underway; they expect improvement in coming quarters, but not an overnight fix. - Investor-relevant risk: if demand/contract economics remain weaker, aviation could continue to weigh on margin.