Assa Abloy Earnings: Off to a Tepid Start in 2024 Amid Still-Tight Financial Conditions

Wide-moat Assa Abloy is off to a slow start in 2024 with demand for its locking and physical access systems weakening in the first quarter. First-quarter organic revenue growth for the group softened by 2% year on year, tracking broadly in line with our full-year estimates that factor in headwinds from subdued construction activity in 2024. Organic sales for each of the group’s Americas, European, and Asia-Pacific opening solutions segments—which together account for roughly 50% of group earnings—declined in the range of 1% to 3%. Sales fell more significantly for Assa Abloy’s global technologies segment, down 9% organically in the first quarter.