Loomis AB: A Resilient Start to 2025 Amid Global Challenges

Loomis AB has delivered a robust performance in the first quarter of 2025, underscored by sustained revenue growth, margin expansion, and strong cash generation. The interim report paints a picture of a company leveraging operational efficiency and strategic investments to navigate a complex economic landscape. While market share specifics remain undisclosed, the financial and operational metrics suggest a firm grasp on its core logistics business.

Revenue Growth Amid Global Uncertainty

Loomis reported a 5.7% year-on-year revenue increase to SEK 7,665 million, driven by organic growth of 4.4% and a 1.2% uplift from favorable exchange rates. The modest contribution from acquisitions (0.1%) highlights the focus on organic expansion. Notably, the USA segment and Europe and Latin America division were key growth engines, with the International business line leading the way. This diversification underscores Loomis’s ability to capitalize on regional demand in cash logistics—a sector increasingly critical as digital payments rise but cash remains a cornerstone of global commerce.

Margin Expansion and Cost Discipline

Operating margins improved to 11.6%, up from 10.4% in the prior year, reflecting a favorable business mix and cost-control measures. EBITA surged to SEK 886 million, a 17.5% increase from SEK 754 million in 2024. Despite SEK 117 million in restructuring costs in the Europe and Latin America segment, net income rose to SEK 382 million, with earnings per share climbing to SEK 5.57. These figures signal a disciplined approach to profitability, even as the company invests in restructuring to improve long-term competitiveness.

Cash Generation and Strategic Capital Allocation

Cash flow from operations soared to SEK 994 million, a staggering 147% increase from SEK 402 million in the same period of 2024, representing 112% of EBITA. This strong cash conversion ratio (up from 53% in 2024) positions Loomis to pursue shareholder-friendly initiatives. The Board’s decision to repurchase shares up to SEK 200 million in Q2 underscores confidence in the company’s valuation and future cash-generating capacity.

Operational Strength and Global Scale

Loomis’s 400 branches across over 20 countries and a workforce of 24,000+ employees provide a solid foundation for its secure cash management services—a niche market with steady demand. The company’s 2024 revenue of SEK 30 billion reinforces its status as a global leader in cash logistics. While the report avoids explicit market share claims, its scale and operational reach suggest a dominant position in key regions.

Challenges and Opportunities Ahead

The restructuring costs in Europe and Latin America highlight ongoing pressures in certain markets, potentially tied to economic volatility or regulatory changes. However, Loomis’s ability to offset these costs with margin expansion and strong cash flow demonstrates resilience. Investors should monitor macroeconomic trends, particularly in regions with high exposure to cash logistics demand, such as emerging markets and Europe.

Conclusion: A Solid Foundation for Long-Term Value

Loomis’s Q1 2025 results reflect a company that has mastered its operational levers. With revenue growth, margin expansion, and exceptional cash flow, the firm is well-positioned to capitalize on its global scale and strategic investments. The share buyback plan and robust balance sheet further signal confidence in its ability to navigate challenges and deliver value. While market share data remains absent, the financial metrics—11.6% operating margin, SEK 994 million cash flow, and a 17% rise in net income—paint a compelling picture of a resilient business. For investors, Loomis offers a blend of stability and growth potential in a sector with enduring relevance.

In an era of economic uncertainty, Loomis’s focus on operational excellence and cash generation positions it as a prudent investment. The coming quarters will test whether this momentum can be sustained, but the groundwork laid in Q1 suggests a company prepared to meet the challenge.