Securitas Stock Price, News & Analysis

SECURITAS A B UNSP/ADR (SCTBY) represents an interest in Securitas AB, a company described in its own communications as a world‑leading safety and security solutions partner. The business operates in the Investigation Services industry within the broader Administrative and Support and Waste Management and Remediation Services sector. According to Securitas, it focuses on helping make the world a safer place by protecting people and assets for its clients.

In an interim report, Securitas states that it has almost nine decades of experience in safety and security. The company highlights that it works with clients to protect what matters most to them and that it aims to create sustainable value through its services. Securitas also notes that it is present in multiple markets and employs a large workforce, which underpins the scale of its operations and its role in the global security industry.

Business focus and strategic transformation

In its Q3 2023 interim report and subsequent investor communications, Securitas emphasizes a strategic transformation centered on technology and solutions. The company reports that technology and solutions represented a significant share of the Group's operating result and that changing the business mix toward these activities is a key factor in its margin improvement journey. Securitas also refers to transformation programs implemented in North America and ongoing in Europe and Ibero‑America, which it says fundamentally shift its digital capabilities.

A major element in this transformation is the acquisition and integration of STANLEY Security. Securitas describes itself, together with STANLEY Security, as being number two in the global security technology market, and it notes that its combined solutions offering is unique. The company reports that it is executing integration and value‑creation processes according to plan and that it has realized most of a targeted cost synergy level, primarily in North America, with additional cost synergies identified.

Financial targets and capital structure

Securitas has communicated a set of Group financial targets in its interim report and investor day materials. These include:

• Technology and solutions annual average real sales growth of 8–10 percent
• A Group operating margin target of 8 percent by year‑end 2025, with a long‑term ambition above 10 percent
• A net debt to EBITDA ratio target below 3.0x (before items affecting comparability)
• An operating cash flow of 70–80 percent of operating income before amortization

The company links these targets to its transformation efforts and to the shift in business mix toward technology and solutions. In its Q3 2023 interim report, Securitas also comments on deleveraging of its net debt to EBITDA ratio and on maintaining a focus on operating cash flow across the organization.

Securitas regularly accesses capital markets. In separate press releases, the company reports issuing Eurobonds and signing new loan and revolving credit facility agreements. For example, it has closed Eurobonds in the Eurobond market with stated maturities and coupons, and it has signed a multi‑currency revolving credit facility agreement as well as a loan agreement with Nordic Investment Bank. Securitas states that the proceeds from these financings are mainly used to refinance existing debt and to support its continued strategy and investments in digitalization and artificial intelligence.

Operations, segments and portfolio management

In its Q3 2023 interim report, Securitas discusses its operating segments and business mix. It notes that Securitas Critical Infrastructure Services was moved from the Securitas North America segment to the Other segment as of the third quarter 2023, and that comparative figures were restated. The company also reports that organic sales growth in security services was driven by price increases and volume growth in its Aviation business, while being affected by the divestment of Securitas Argentina and active portfolio management.

Securitas states that leadership in technology and solutions and in digital capabilities is core to executing its strategy. The company links its margin improvements to strong performance in its technology and solutions business and to the ongoing integration of STANLEY Security. It also notes that client interest in its strengthened offering is high and that it has begun to realize commercial synergies, citing an example of a technology contract win with an existing guarding client in the financial segment.

Corporate governance and shareholder matters

At its 2024 Annual General Meeting (AGM), Securitas AB adopted the parent company and consolidated financial statements for the financial year ended December 31, 2023. The AGM resolved on a dividend per share to be paid in two installments, with record dates specified in the meeting decisions. The AGM also discharged the Board of Directors and the President from liability for the financial year.

The AGM decided that the Board would consist of eight members with no deputy members. It re‑elected the existing Board members named in the AGM bulletin and re‑elected Jan Svensson as Chair of the Board. The meeting set total Board fees, including committee work, and specified fees for the Chair of the Board, other Board members, and members and chairs of the Audit and Remuneration Committees.

The AGM resolved to re‑elect Ernst & Young AB, Stockholm, as the company’s auditor, with a named authorized accountant as auditor in charge, for a term extending to the AGM for 2025. The AGM approved the Board’s remuneration report and adopted guidelines for remuneration to members of Securitas Group Management, replacing earlier guidelines. In addition, the AGM authorized the Board to resolve on acquisition and transfer of the company’s own Series B shares and approved the implementation of a long‑term incentive program (LTI 2024/2026), in line with programs adopted at prior AGMs.

Credit rating and external assessment

Securitas has reported that S&P Global Ratings upgraded its long‑term credit rating on Securitas AB from BBB‑ to BBB with a stable outlook. According to the company, this decision was based on lower leverage and strong cash flow generation. The rating and outlook are relevant for investors in SCTBY because they reflect an external assessment of Securitas AB’s credit quality and financial profile.

Investor communications and reporting

Securitas regularly communicates with investors through interim reports, full‑year reports, investor days, and conference calls. The company announces in advance when it plans to publish interim reports and provides details on telephone conferences and audio webcasts where senior management presents results and answers questions from analysts and media. Presentation slides and recorded versions of webcasts are made available through Securitas’ investor relations channels.

In its Q3 2023 interim report, Securitas outlines a financial information calendar that includes dates for full‑year and interim reports and the Annual General Meeting. The company also notes that it is obliged to make certain information public pursuant to the EU Market Abuse Regulation and that such information is submitted for publication through designated channels.

Role within the security industry

In its own description, Securitas characterizes itself as a world‑leading safety and security solutions partner that is transforming the security industry. It states that it leverages technology in partnership with clients and that it aims to see what others miss, drawing on its long experience in security. The company indicates that it operates in many markets and that it has a substantial employee base, which supports its ability to deliver security services and solutions on a large scale.

For investors considering SCTBY, this context means that the underlying company combines traditional security services with a growing focus on technology and digital capabilities. The emphasis on technology and solutions, the integration of STANLEY Security, and the financial targets communicated by Securitas provide insight into the strategic direction that the ADR represents.