Securitas (OM:SECU B) Stock Sees Margin Improvement That Tests Bearish Earnings Slowdown Narrative

Securitas (OM:SECU B) has kicked off Q2 2026 with Total Revenue of about SEK37.8b and Net Income of roughly SEK1.6b, setting a clear marker for how the rest of the year may shape up. Over recent quarters the company has seen quarterly revenue move from SEK38.6b in Q2 2025 to SEK37.8b in Q2 2026, alongside Net Income shifting from SEK1.5b to SEK1.6b, while trailing twelve month revenue of roughly SEK151.0b has supported Net Income of about SEK5.6b. With net profit margins edging up over the past year and forecasts pointing to further revenue and earnings growth, this set of results gives investors fresh numbers to weigh against the potential rewards on offer.

See our full analysis for Securitas.

With the latest figures on the table, the next step is to see how these results line up with the dominant narratives around Securitas, and where the story investors have in mind may need an update.

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Net margin edges up to 3.7%

• Over the last 12 months, Securitas converted SEK150,997 million of revenue into SEK5,589 million of net income, which works out to a 3.7% net profit margin compared with 3.5% a year earlier.
• What stands out against the bullish view of faster margin expansion is that one year earnings growth of 0.1% sits well below the 13.3% per year five year pace, even though bulls expect margins to climb further, so investors may want to ask whether the recent margin level is a stable base or still a work in progress.
  • Bulls point to cost programs and a shift to higher margin services as drivers for future earnings growth of about 12.8% per year, yet the latest 0.1% earnings growth highlights how gradual that improvement has been so far.
  • The small step up in net margin to 3.7% is consistent with a slow grind higher, which supports the bullish argument in direction, but not yet in the stronger pace they are looking for.

Bulls arguing that Securitas is just getting started with margin expansion may want to see how the full bullish thesis stacks up against these early numbers in the 🐂 Securitas Bull Case

Five year earnings growth vs flat recent year

• Earnings grew at an average 13.3% per year over the past five years, but the most recent 12 month period shows only 0.1% earnings growth, which is a clear slowdown against that longer trend.
• Critics using the bearish narrative flag this slowdown as a sign that rising labor costs and slower tech adoption are starting to bite, and the current figures give some support to that concern.
  • The near flat 0.1% earnings growth fits with the bearish idea that traditional guarding and slower progress in Technology & Solutions could make it harder to convert modest revenue growth into stronger profit gains.
  • At the same time, the move in net margin from 3.5% to 3.7% shows some operational improvement, which partly challenges the view that profitability is being squeezed across the board.

Skeptical investors who see this slower earnings growth as a warning sign can walk through the full cautious case in the 🐻 Securitas Bear Case

Valuation gap vs P/E and DCF fair value

• At a share price of SEK151.0, Securitas trades on a P/E of 15.5x, below the 16.4x industry average and 19.4x peer average, and also well under a DCF fair value of SEK342.39.
• Supporters of the bullish valuation angle argue that this combination of a below peer P/E and a DCF fair value well above the current price suggests the market is not fully crediting the forecast earnings growth.
  • Forecast earnings growth of about 12.8% per year compared with a 7% Swedish market forecast helps explain why bulls see a mismatch between business performance expectations and a 15.5x P/E multiple.
  • Against that, the flagged risks of high debt and a dividend yield of 3.51% that is not well covered by free cash flow give a clear reason why some investors may still hesitate to pay closer to the DCF fair value today.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Securitas on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and concern around Securitas feels familiar, consider taking a closer look while the details are fresh and weigh the 4 key rewards and 2 important warning signs.

See What Else Is Out There Beyond Securitas

Securitas shows only 0.1% earnings growth over the past year and a modest net margin of 3.7%, while debt and free cash flow coverage raise concerns.

If you are uneasy about slow profit progress and balance sheet pressure, use the solid balance sheet and fundamentals stocks screener (419 results) to quickly zero in on companies with stronger financial foundations and potentially steadier earnings power.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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