Securitas posts margin gains in Q1 but flags North America growth softness

STOCKHOLM, Sweden—Securitas reported continued margin expansion and solid earnings growth in the first quarter of 2026, but softer-than-expected top-line performance – particularly in North America – weighed on investor sentiment and sent shares lower following the earnings release.

The global security services provider extended its long-running trend of margin improvement, supported by disciplined cost control, portfolio optimization and a continued shift toward higher-value services.

However, growth came in below expectations.

“On a high level, we delivered good operating margin improvement, earnings growth and cash flow in Q1, but the top line growth was below my expectations,” CEO Magnus Ahlqvist said, noting that North America – Securitas’ largest market – delivered flat year-over-year growth.

North America weakness tied to installations

The primary drag on growth was a decline in technology installation activity in North America, driven in part by weather-related disruptions, including three winter storms during the quarter that halted travel and prevented technicians from accessing job sites, creating delays and productivity challenges.

“I have not mentioned any winter storms in the past as the CEO of the company, but here we had three,” Ahlqvist said.

As a result, real sales growth in the Technology and Solutions segment in North America declined slightly, but is expected to recover in Q2 as installation activity normalizes.

The company also cited a negative impact from the loss of a large temporary contract in its Pinkerton business.

Despite the slowdown, Ahlqvist emphasized that underlying demand trends remain intact, pointing to strong order intake and backlog.

“When you look at the order intake…it is really positive development in Q1 compared to the same period last year. Back order…also clearly up,” he said. “That is giving me confidence that we’re in a good position to turn that business around.”

Technology segment remains margin driver

Securitas’ Technology and Solutions segment continued to deliver strong profitability and remains central to the company’s strategy as it shifts toward integrated, higher-margin security offerings.

Executives pointed to continued progress in combining guarding, electronic security and data-driven services into more comprehensive solutions tailored to client needs.

While overall technology growth was softer than expected, management stressed that volatility largely reflects the project-based nature of installation work, which can fluctuate from quarter to quarter.

“The installations business is inherently more volatile,” Ahlqvist said, adding that order intake and backlog are more reliable indicators of future performance.

Regional performance mixed

Outside of North America, performance was more balanced. Europe saw modest growth supported by pricing and steady demand for technology solutions, though aviation-related activity softened amid reduced flight volumes tied to geopolitical tensions in the Middle East.

Ibero-America delivered the strongest performance, driven by pricing actions and continued expansion in technology-led offerings.

Across regions, Securitas continues to benefit from its multi-year portfolio optimization efforts, shedding lower-margin contracts while improving the overall quality of its business.

Strategic progress continues

During the quarter, Securitas completed the acquisition of LifeRaft, a threat intelligence provider, as it looks to expand its capabilities in intelligence-led security services.

At the same time, the company divested parts of its U.S. aviation services business and non-core technology operations in Canada, signaling that its broader portfolio reshaping program is nearing completion.

“With the business now in much better shape, we can shift emphasis towards enhancing the value proposition and driving commercial synergies,” Ahlqvist said.