Loomis Stock

Ladies and gentlemen, welcome to the Q2 2026 Report Conference Call. I am Myra, the Chorus Call operator. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead.

Thank you very much. Good morning, everyone, and welcome to the Loomis' Second Quarter 2026 Presentation. My name is Aritz Larrea, and I'm the CEO of Loomis. With me here today are our CFO, Johan Wilsby; and Jenny Boström, our Head of Sustainability and Investor Relations.

I'll start by providing a brief summary of our second quarter results before opening the floor for questions. Let's begin by turning to Slide #2. We delivered a strong second quarter with revenue of almost SEK 7.9 billion. Currency-adjusted growth was above 9%, driven by strong organic growth and contributions from acquisitions. During the quarter, we saw very strong growth in our international and FXGS business lines, driven by increased demand for the transportation of precious metals.

We also continue to deliver strong growth in our Automated Solutions business line. We increased our EBITA margin by more than 1 percentage point year-over-year to 14%. This represents the highest margin in our history, and I'm pleased to see that the restructuring and efficiency initiatives we have implemented continue to support margin expansion. Our robust cash flow enables us to continue investing in the business while also delivering attractive returns to our shareholders.

Although quarterly operating cash flow was impacted by higher working capital, we achieved a strong rolling 12-month cash conversion of 95%. As we announced at our 2024 Capital Markets Day, we have the ambition to expand our footprint in Latin America, and we made significant progress towards that ambition during the quarter. In early July, we completed the acquisition of the Argentine cash handling company, Transportadora del Interior. This acquisition doubles our operations in Argentina, giving us presence in the country's largest and economically strongest regions. As you know, we are in the process of acquiring Hermes Transportes Blindados, the most significant acquisition in Loomis' history.

Hermes is the market leader in secure transportation and cash management in Peru with approximately 50% market share. They have around 1,000 customers and approximately 3,200 employees. The acquisition further strengthens our position in Latin America and is an excellent strategic fit for Loomis. It also supports our growth ambitions in both automated solutions and the international business line. We are currently preparing to launch the public tender offer, which is currently expected to take place in August.

Together, these acquisitions strengthen our footprint in Latin America, a region characterized by high cash usage and attractive long-term growth opportunities. Creating value for our shareholders remains a key priority at Loomis. During the second quarter, we distributed an ordinary dividend of SEK 15 per share and an extraordinary dividend of SEK 5 per share, returning more than SEK 1.3 billion to our shareholders. I'm also pleased that Standard & Poor's reaffirmed our BBB credit rating with a stable outlook, recognizing the strength of our balance sheet and our disciplined financial management.

Finally, I would like to welcome Tobias Hägglöv as Loomis' new CFO. Tobias will join us in September and brings extensive leadership experience from a range of companies and industries. With that, let me turn to the next slide and review the performance in Europe and Latin America. Our Europe and Latin America segment delivered a strong performance during the quarter with revenue of SEK 3.7 billion and a solid currency adjusted as well as organic growth.

Demand for secure logistics and the management of high-value assets remained strong, supporting continued growth in both our international and FXGS business lines. Automated Solutions also performed well, delivering growth of more than 20% compared to the prior year. The EBITA margin reached 12.4%, reflecting continued progress in our margin expansion initiatives despite some short-term headwinds in the ATM business.

Let me now turn to the next slide to discuss our performance in the U.S. The U.S. segment delivered another exceptional quarter with revenue exceeding SEK 4.1 billion. Currency adjusted growth reached a very strong 12.2%, partly supported by fuel price indexation. Our international business line delivered an outstanding performance driven by strong demand for the cross-border transportation of precious metals. At the same time, our Automated Solutions business line delivered another quarter of double-digit growth, contributing to strong organic growth across the segment.

Our efficiency initiatives continue to deliver tangible results, enabling us to grow the business without increasing headcount, while maintaining high service quality and strong customer satisfaction. As a result, we delivered record operating income and the highest operating margin in the segment's history, demonstrating the scalability of the business and the strength of our execution.

Let me now turn to the next slide to discuss our SME/Pay business. Revenue in the SME/Pay segment increased to SEK 90 million during the quarter, with nearly half generated from cash-related services provided to small- and medium-sized businesses. We continue to see encouraging momentum in our combined cash and digital offering, winning contracts across additional business verticals, including sports arenas and health care.

This new customer segment demonstrates the growing relevance of our integrated payment offering and our ability to support larger organizations with the efficient management of both cash and digital payments. The migration to new POS platforms enables Loomis Pay to focus on larger SME customers across a broader range of verticals.

As part of this process, Loomis Pay has chosen not to migrate unprofitable customers, which has had a modest impact on settled transaction volumes. The reduction in the operating loss compared to the previous year is fully in line with our strategic priorities for the segment.

Let me now turn to the next slide and provide an update on our sustainability progress. As we mentioned during our Q1 presentation, Loomis became the first company in our industry to have its climate targets validated by the Science Based Targets initiative in April. This represents an important milestone and a commitment that we take very seriously. We are already making good progress against those targets, continuing to deliver on our carbon emissions reduction plan.

During the quarter, our use of HVO biofuel increased by more than 25% compared with the prior year. HVO now accounts for approximately 6% of our total fuel consumption. Combined Scope 1 and Scope 2 emissions decreased both year-over-year and compared with the previous quarter. Compared with Q1, Loomis reduced its combined Scope 1 and 2 emissions by approximately 4%.

And safety remains the top priority for us. As you know, our ambition is to reduce our work-related injury rate by 10% by 2027 compared with 2024 levels. On a rolling 12-month basis, we remain slightly above that target trajectory. Protecting our employees and further reducing workplace injuries remain key priorities for the company, and we will continue to maintain a strong focus on safety and continuous improvement.

With that, let me turn to the income statement, where I'll begin by highlighting that we delivered both strong currency adjusted and organic growth. Our performance resulted in record high earnings per share. Our quarterly EPS grew by 30% compared to Q2 2025.

During the quarter, we had a few items affecting comparability. The most significant was the reversal of the Burroughs earn-out provision, reflecting that the earn-out conditions were not met. We remain very pleased with both the acquisition and the multiple we paid. We also recognized a write-down related to an older software development project and recorded a smaller provision in connection with an ongoing claim in Chile.

Finally, I would like to highlight that our net debt-to-EBITDA ratio improved year-over-year and remains well below our target of 2x. Following the completion of the Hermes acquisition, leverage is expected to temporarily exceed this level before returning below 2x within approximately 6 months. Maintaining our investment-grade credit profile remains a key priority. As I mentioned earlier, we are pleased that Standard & Poor's reaffirmed our BBB credit rating with a stable outlook.

With that, let's turn to the next slide and review our performance in a historical context. We continue to execute our strategic priorities while strengthening the platform for long-term profitable growth. Loomis is well positioned to capture opportunities in both existing and new markets while continuing to make progress on our sustainability ambitions. Looking at the rolling 12-month period, we achieved a revenue of SEK 30.7 billion and a record high EBITA margin of more than 13% despite significant currency headwinds over the past several quarters.

Currency adjusted growth reached 8.2% over the last 12 months, giving us confidence that we remain on track to deliver our strategic targets. We expect to remain in the upper half of our 12% to 14% EBITA margin target range for the remainder of the strategic period. As mentioned earlier, we're also making steady progress towards our 2027 sustainability targets.

As we enter the second half of our strategic period, I'm confident that we will continue to deliver on our strategic priorities and achieve our targets. This concludes my summary of the quarter. Operator, we are now ready to take questions.

[Operator Instructions] The first question comes from the line of Jönsson Simon from ABG.

I hope you can hear me well. First, I want to start with the U.S. And yes, the performance continues to be very impressive here. And you highlighted a few things. You highlighted the organic growth may have been a little bit boosted by the price indexations for fuel costs. So I mean, do you expect those price increases to carry into the coming quarters? Or would lower oil prices here mean that you would give back sort of part of that growth?

I mean, as you know, this is the fuel. We have what we say the matrix fuel included in the customer contracts. We don't predict how fuel is going to behave now, but we expect a stable trend till the end of the year.

All right. So that means that it should, all else equal, continue to be positive for the organic growth coming quarters?

It will. That's what we estimate till the end of the year, yes.

Yes. All right. And then a follow-up on that topic. Given the strong margins also in the U.S. was that impacted by the price indexations? Or was it more driven by just the regular ongoing business?

We had a bit of a problem to hear your question, Simon. Can you repeat it?

Yes. Sorry. So in terms of margins, was that also impacted by the price indexation?

No, no, no. The fuel fee matrix is just to cover the potential risk that we can have with the prices of fuel going up in our P&Ls. So no, no, no. The U.S. margins are just showing the trend that we see in the last quarters, and we expect those to continue during the rest of the year.

Perfect. Then on international, revenues are plateauing a bit here, I'm assuming. And how was the growth through the quarter? Did you see any deceleration trend through the quarter coming into Q3 at a lower base? Or was it more stable through Q2?

You know that Q1 was a very strong quarter for us on international. And at the beginning of the quarter, it remained strong. Then in the middle of the quarter, it slowed down a little bit, and it came up again during June. We expect the international business line to remain at this level, at least till the end of the year, although you never know with the uncertainty and the volatility, but we do expect it to remain at the levels that they are today.

Excellent. Just a final one from me on M&A. You have been very active here in Latin America, in line with what you have been targeting and wanting to do, which is good. I'm curious what potential is left for you there in Latin America. I mean you still have relatively low market shares in Chile and Argentina, but you also have big competitors there. You tend to prefer to be a #1 or #2 player, right? And now you are #3. So what's your outlook on that?

Well, the first thing is it's very difficult to become #1 and #2 there because there's a big difference between our competitors and us. I mean just bear in mind that today, Latin America represents 1.5% of our revenue. With the Argentinian acquisition, that could go up to 2%. And if we conclude the Hermes acquisition, which we expect, the weight of the LatAm business could be between 5% and 6% which is still very low compared to where our competitors are.

So I don't foresee us occupying that first or second place, but we just want to keep growing there because, again, it's an attractive market, a lot of growth opportunities there, and it's a way of expanding in places where cash is still strong.

The next question comes from the line of Dan Heimer from SEB.

Circling back a little bit on Simon's question on fuel. I would assume it's a net negative in this quarter in terms of the profitability at least. So can you remind me the fuel impact in Europe? Do you have a view on the margin impact from that? And also, have you implemented sufficient price increases now during Q2 to offset that negative margin development? Or where are you in terms of price increases in general in Europe right now?

Thank you for your question. I think it's important to understand that we could say that on a global basis, 60% of our business is protected from fuel price increases. And then the remaining 40%, which is mainly on the European side, that is up to individual discussions with customers due to clauses of extraordinary things happening in the contracts.

And we're negotiating those as we speak and every day. But at least we are comfortable with having at least 60% covered through these fuel matrixes.

Were you asking about price increases with customers in general on top of that then? Or was it only related to fuel?

No. Also in general, where are you in terms of price increases? Are you sort of on the curve because Q2 is typically an important quarter in terms of setting prices in Europe for the year, I guess.

I didn't -- sorry, can you repeat the question, please, Dan? I didn't hear you well.

Sorry for that. I was just referring to price increases in general as well. Are you sort of on the curve now in Europe in Q2? Or yes, because it's typically an important quarter for price increases.

It's important to understand that the bulk of the price increases in the European contracts are in the beginning of the year, January, February. So of course, in the negotiations we actually have with customers, if we're not capable of transferring part of that cost, then we will include that in the price increase for next year.

Great. Understood. And maybe touching a little bit on SME/Pay. It was a very strong quarter in terms of revenue development. Is it more that you expand CMS, CIT and SafePoint across new smaller businesses that you have taken on? Or is it rather the digital offering through Loomis Pay that's growing here?

I think that as we outlined at the Capital Markets Day, you need to see Loomis Pay as part of a broader SME offering. In that comprehensive value proposition for the SMEs, cash remains still a critical component and Pay just complements that ecosystem. So yes, we've got all the CIT, CMS, automated solutions. We're including all our solutions in the bundled offer to the customers.

Yes. So it's more of the integrated offering across all business lines that explains the growth in this quarter, which seems on quite good levels right now.

Correct, yes.

Yes. Okay. Maybe a final one. You touched a little bit on Hermes. And remind me of the time line, you're launching the offering now in next month in August. And if everything goes well, it's closure quite immediate, right? Or when do you expect to have it in the books, so to speak, if everything goes according to plan?

We're launching the public offer now during August. And if everything goes according to plan at the beginning of Q4, we will close the acquisition.

The next question comes from the line of Viktor Lindeberg from DNB Carnegie.

Looking firstly at the U.S. business, and congratulations on the strong performance, both on the top line and the margins there. But trying to understand and trickle out the margin drivers. And you obviously have the Burroughs integration and you have the operating leverage from the cash business and then you have the international business as well.

So firstly, Burroughs, maybe at least compared to my notes, the revenue momentum has been a bit slower, but maybe you've been focusing on integration and profitability first instead of growth. And can you first, in light of the margin drivers, comment a bit on the progress with Burroughs here?

So I think with Burroughs, Viktor, we need to understand what we acquired. Burroughs was suffering a lot on service quality, and they were losing important contracts when we acquired them. So the first thing there was to try to stabilize all that. And we've been working on that. And I think that they have been even growing. So we stopped the bleeding on the revenue side. And on top of that, we did grow, right?

Now it's still early stages with them. It's a new -- a new line of work for us for Loomis. It's more technology-driven with technical services. We still believe it's a perfect fit for us. But first, we need to fix the quality issues and ensure that we have an excellent service. And then once you achieve that, then it's about improving the efficiency and improving the margins. But they have supported the growth in the U.S.

And then aside from that, the other drivers that you asked about for the quarter, as you mentioned, it's Automated Solutions with double-digit growth again and the international business being stronger. But I would say on the margin side, it's important to understand the work on increasing the operational efficiencies that is being done there. It has been significant progress in the last quarters.

And those efficiencies, is it density in the routes that you can leverage more? Is it lower employee turnover? Or what are the key ingredients here for finishing an already good margin level?

It's both on transportation and on the CMS rooms. It's about improving the flows of our processes, working in a different way on the different products that we provide. And on the transportation side, it's about being more efficient, which also helps to reduce the fuel usage as well.

Okay. And maybe this is not fully correct because you have some integration of the Burroughs revenues in some of the business lines. But looking at CMS to my calculations, it looks like you now are operating with a flat revenue line in the past 3 quarters, so not really growing, but maybe having focused on efficiency. Would you say that is a fair picture and that emphasis going forward would be to reignite growth within CMS? Or how should we look upon that?

You're completely spot on, but we do expect the CMS area to grow in the future.

Perfect. Jumping to Europe and what we have seen in the past couple of quarters having been the lower ATM revenues still being down by the double digits in Q2 as expected in my book. But we now going into Q3 and Q4 start facing, call it, easier comps, they should be largely out of the picture. And for that reason, my question here is looking at the contract portfolio going into Q3, how does that look?

Have you been facing additional contract losses that we should be mindful looking into cash trends for an ATM volumes in Q3 and Q4 or simply on the basis of leaving the comps, are we looking back to growth now?

So it's a long question. Let me take it step by step. If you look at the second half of the year, growth would look positive for Europe. We have the seasonality coming in, in Q3 and despite having strong comps on the international side, we expect the second half to be a good half for international as well. So we don't foresee that.

On the ATM side, probably we expect it to be a bit more flattish, slightly increasing a little bit. Hoping that next year, we have a better year on the ATM business line in Europe.

Okay. Got it. And the mix effect on -- I'm looking at margins now and the EBITA margin in Europe here because you have the operating leverage, you have the strong growth in Automated Solutions and a slight potential recovery in ATM. It should be quite beneficial when we look at the operating leverage? Or is this tainted as the previous question on inflation and more so on fuel?

It looks positive. And as I said in my -- during the presentation, you can see that our -- we talked about having an EBITA margin between 12% and 14% annually. We talked about being on the upper part of that range at the end of the strategic period. You saw that on a rolling 12 months, we are at 13.2%. And what I can tell you is that we will remain on that upper half for the remaining strategic period.

Viktor, Q3 and Q4 are strong European seasonality quarters as well that you know from the past.

Yes. That's clear. And this is maybe an early question to ask, but we've had very big heat waves so far in July. We're talking about cash usage, cash in circulation, but also how that may affect behavior in Europe. Is that something that we should be mindful here of when looking 2, 3 months ahead and closing this quarter? Could that be an impact on consumer behavior in your book?

No, I don't expect any significant impact because of that. I think the consumption will behave the same way as in past years.

Very good. Final question for you, Johan, I think on the financial net, there were a couple of cost items in the financial net relating to refinancing. Is there anything else we should be mindful here? Or given the strong financial position you have and the interest rate levels, it should be lower financial net costs going forward. Is that a fair assumption?

It's at least stable going forward. As you alluded to, we had some refinancing costs in the quarter and also compared to a Q2 of last year where we had a bit of a one-time positive FX effect. So that's why you have an increase this quarter. I don't expect that trend to go on.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Aritz Larrea for any closing remarks.

Thank you. Before we end today's call, I would also like to take the opportunity to thank Johan Wilsby for his professionalism, dedication and valuable contributions to Loomis. As this is his last quarter with us as CFO, I would like to wish him every success in his future endeavors.

Thank you all for joining us today. If you have any follow-up questions, please don't hesitate to reach out. I wish you all a wonderful summer. If we don't have the opportunity to speak before then, I look forward to speaking with you again when we present our third quarter results. Thank you. Bye-bye.

Ladies and gentleman, the [Technical Difficulty]

Ladies and gentlemen, welcome to the Loomis Quarter 1, 2026 Conference Call. I'm Lorenzo, the Chorus Call operator. [Operator Instructions] At this time, it's my pleasure to hand over to Aritz Uribiarte, President and CEO. Please go ahead.

Thank you very much. Good morning, everyone, and welcome to the First Quarter 2026 presentation for Loomis. My name is Aritz Uribiarte, and I'm the CEO of Loomis. And with me here today, I have our CFO, Johan Wilsby, and Jenny Bostrom, our Head of Sustainability and Investor Relations. I'll start by providing a quick summary of our first quarter before opening for questions.

Let's start the presentation by turning to Slide #2, We delivered a strong first quarter with revenues close to SEK 7.5 billion despite an 11.6% negative impact from changes in exchange rates. Currency adjusted growth reached 9.7 -- sorry, 9.3% with both strong organic growth and contribution from acquisitions.

During the quarter, we saw very strong growth within the International and FXGS business lines, driven by increased trend for the movement of precious metals, partly due to geopolitical uncertainties. We also continued to deliver strong growth in our Automated Solutions business line.

We increased our EBITDA margin by 1 percentage point year-over-year to 12.6%. This represents our highest first quarter margin to date, and I'm pleased to see that the restructuring and efficiency initiatives we have implemented support the margin expansion.

We delivered another quarter of strong operating cash flow with a cash conversion of 95% over the rolling 12 months. On a quarterly basis, cash flow was slightly impacted by higher working capital but remained at a solid level with 84% conversion. This robust cash flow enables us to continue investing in the business while also delivering attractive returns to our shareholders.

I'm also proud that we have been the first in our industry to have our climate targets validated by the Science Based Targets initiative. I will come back to this later in the presentation.

Yesterday, the Annual General Meeting approved the ordinary dividend of SEK 15 per share and the extraordinary dividend of SEK 5 per share. This means we will distribute over SEK 1.3 billion to shareholders next week. I would also like to highlight that today is the ex-dividend date.

Finally, earlier this week, we announced that we had entered into a share tender agreement with, among others, CVC Capital for their shares in Hermes Transportes Blindados, marking our entry into Peru. The transaction will be carried out through a public tender offer. I will spend some time on this acquisition after summarizing the first quarter performance.

Turning to the next slide to go through Europe and Latin America. Our Europe and Latin American segment delivered a strong performance in the quarter with revenues of SEK 3.6 billion. We achieved organic growth of 6.6%, which was particularly strong, considering the communicated revenue decline in the ATM business line.

The uncertainty of political climate has increased global demand for secure logistics and the management of physical assets such as precious metals. This has positively impacted both our International and FXGS business lines, with International business line growing by over 30% in the quarter compared to prior year.

We also achieved double-digit growth within our Automated Solutions. The operating margin increased close to 1 percentage points to 10.2%, demonstrating that our focus on operational efficiency yield positive results.

Let's move on to the next slide to talk about the U.S. The U.S. segment delivered another strong quarter. Adjusting for currency impact, the U.S. achieved record high revenues. Organic growth was 5.3%, and the acquisition of Burroughs contributed positively to overall growth.

International business line, in particular, delivered strong performance, which was driven by an increased demand of cross-border movement of precious metals. As you know, we have had double-digit growth -- organic growth within Automated Solutions for many quarters in a row. And this trend continued also in the first quarter with an organic growth in the mid-teens.

We also saw that price indexation related to higher fuel costs in March following developments in Iran contributed positively to revenue in the first quarter. Despite significant currency headwinds of 15.2%, the business achieved record high operating profit of over SEK 700 million. The operating margin reached 17.9%, marking a new record for us.

Our operational efficiency initiatives continue to deliver results, enabling us to grow the business without increasing headcount. At the same time, we have maintained a high service quality and strong customer satisfaction. The volume growth, combined with improved efficiency, contributed to the expansion of the operating margin.

The precious metal storage facility in Canada acquired at the end of 2025 has been successfully integrated during the quarter and contributed positively to profitability. In addition, the sale of a facility and relocation to a new leased site had a slightly positive and nonrecurring impact on the margin.

Let's turn to the next page and talk about SME/Pay. Revenues in the SME/Pay segment increased to SEK 72 billion in the quarter. More than 45% of this revenue now comes from new small- and medium-sized customers, demonstrating that our strategic focus on SMEs is driving both growth and improved operating results.

A reduction in the operating loss compared to the previous year is in line with the segment's strategic priorities. The migration to new POS platforms enables Loomis Pay to focus on larger SME customers across additional verticals. As part of this process, Loomis Pay has chosen not to migrate nonprofitable customers, which has some impact on settled transaction volumes.

Let's now move to the next slide where I'll share a few updates on our sustainability progress. We continue to make solid progress against our carbon emissions reduction plan. During the first quarter, our use of biofuel HBO increased by 10% compared to the same period last year. Today, 40% of the group's total electricity consumption comes from renewable sources, reflecting our ongoing efforts to transition to cleaner energy.

Year-over-year, our combined Scope 1 and Scope 2 emissions have increased slightly, primarily due to the acquisitions completed in 2025. However, when compared to the fourth quarter of 2025, we have achieved a meaningful reduction with Scope 1 and 2 emissions down by 3%.

Safety remains an equally important priority for Loomis. We have set a target to reduce our recordable work-related injury rates by 10% by 2027 compared to 2024 levels. On a rolling 12-month basis, we are performing slightly better than this target level. Protecting our employees and further reducing workplace injuries remain a key priority for the company, and we will continue to maintain strong focus on both safety and continuous improvement.

Let's move to the next slide. where I'm pleased to share that the Science Based Targets initiative has validated our new emissions reduction targets. Our new targets address both our direct emissions and indirect emissions across our value chain, reflecting a comprehensive and responsible approach to climate action.

With this, we cemented our role as the industry leader within sustainability, showing that it is possible to reduce our environmental footprint and deliver critical infrastructure at the same time. We have now taken a leading role in transforming the industry towards a more sustainable future.

Now let's turn to the income statement slide, where I'll begin by noting that despite the significant negative impact from exchange rate headwinds, we achieved both strong currency adjusted growth and organic growth. Our net financial items have improved compared to the previous year, driven by lower financial expenses as interest rates have declined. Our strong performance has resulted in record high earnings per share despite the currency headwinds.

I would also like to highlight that our net debt-to-EBITDA ratio is stable and well below our target of staying under 2x. With the acquisition of Hermes, net debt-to-EBITDA is expected to temporarily exceed 2x following completion. However, this increase is short term and leverage is expected to come down within 6 months. We remain fully committed to maintaining our investment-grade credit rating.

Now let's move on to the next slide to review our performance in a historical context. As we can see, we have a stable and resilient business model that continues to deliver. Looking at the rolling 12 months, we have achieved a record high operating margin of 12.9%. Despite significant currency headwinds, we have maintained revenues at SEK 30 billion. Currency adjusted growth for the rolling 12 months was 7.2%, slightly above our growth target for the strategic period.

Moving to the next slide before opening for Q&A, I want to spend some time on the intended acquisition of Hermes Transportes Blindados. Earlier this week, we announced the intention to acquire Hermes, marking our entry into Peru. For many years, Loomis has operated in Argentina and Chile, and we have continuously explore opportunities to expand our business in Latin America.

As you know, this is one of the strategic priorities we presented at our Capital Markets Day in 2024. And Peru is one of the countries we have been closely monitoring. It's an attractive market for Loomis, one of the fastest-growing economies in the region with high cash usage and a stable macroeconomic framework.

Hermes is a market leader in secure transportation and cash management in Peru with around 50% market share and a diversified base of approximately 1,000 clients and about 3,200 employees.

The transaction values the business at an enterprise value of SEK 1,450 million with an adjusted EBITDA multiple of 6.6x. We have entered into a tender offer agreement with CVC Capital Partners and other minority shareholders, who together hold 99.5% of the shared capital. Loomis will conduct a public tender offer to acquire up to 100% of the company's shares.

We expect to launch the tender offer during Q2 or Q3 with closing of the acquisition during Q3. From an earnings perspective, the acquisition is expected to be immediately accretive to earnings per share.

Overall, this acquisition strengthens our position in Latin America and is a strong strategic fit for Loomis. It aligns well with our growth ambitions within both Automated Solutions and International business line.

This concludes my summary of the quarter. Operator, we are now ready for questions.

[Operator Instructions] The first question comes from the line of Jonsson, Simon from ABG Sundal Collier.

Good morning, everyone. Thanks for questions. I want to start off with the International business here. Very strong growth again. But I wonder if you can clarify a little bit how much of the growth is driven by the precious metals business, of course, a large part of it. But also if the other categories in International are also growing and contributing or how that mix is doing?

Yes. Thanks, Simon. The situation in Q1 has been mixed. The beginning of the year was mainly driven by silver movements, where a lot of silver was transported globally as well as the -- we have also opened new geographical lanes and expanded our business.

So the key drivers include an increase in global interest in precious metals trading during geopolitical uncertainty as we had in Q4 last year as well. The war in Iran at the beginning of March with the closing of airspace has impacted somehow flights and also our business in Dubai and the Middle East. But there was -- there's been a continued high demand to move precious metals also outside Dubai at the same time.

All right. And what's the near-term outlook you think for that business, given that volatility may not be as high in the precious metals markets here? What do you see in coming quarters?

So as we've always commented, this business is cyclical. So it's very difficult to estimate how the year will proceed. But forwarding is more of a spot market and the year opened with high demand. However, we don't know how long the situation in Iran will last and the impact it will have on both airspace and availability of flight. Nevertheless, so far, we've seen the same level of momentum in Q2 -- at the beginning of Q2 as we saw in Q1.

All right. Then turning to the contribution from other segments in Europe, excluding the positive impact of International for the European margins, how how did the rest of Europe develop here in the quarter?

As you mentioned, we had International impacting positively. We also had Automated Solutions with double-digit growth. You know that we have diversified also our portfolio within International, expanding into pharmaceutical logistics, also growing with lower-value goods business as well. And now the focus moving forward is to keep growing Automated Solutions and to try and recover part of the ATM business that we lost in prior year.

Okay. So it's fair to assume that -- the core cash business has been more flat on margins then?

Yes. Yes, you may assume that.

All right. You also did not take any new charges for restructuring, I think, here in Q1, if I read correctly. So what does that mean for the future of the cash business in Europe in terms of margins and outlook and so on?

So I mean, looking at the restructuring costs, you know that we still have an ongoing review on Europe. So therefore, we showed that some additional restructuring may occur in 2026, although not to the level of what we saw in 2025.

And regarding the margins, you know that our ambition is to just try to recover the margins that we had of the -- before we got impacted by COVID, I think we're on the right track there. There's still work to be done. But we're happy with the pace that we're showing. I mean, increasing close to 1% of margins in Europe is a strong performance, I would say.

All right. Then just the last one for me on the Hermes acquisition, You talk about synergies with your existing International business taking the cross-border business over there. But do you also plan to expand the the local mining business to more countries in the region, for example? Is that part of the plan?

I mean it's -- we already do that in certain parts of Argentina as well. But I think -- the main purpose with Hermes is on the International side, they only take care of the domestic side of the business, and we [ want ] to add that International leg to be able to do that door-to-door service.

And then another key thing there, a driver of growth will be Automated Solutions. We think there's a low penetrated market in that sense in Peru, and we can be very successful as well with our [ team ] of products.

All right. Just a follow up on that on the mining business in both Peru, but also you mentioned you have some in Argentina. Is -- what kind of metals or that primarily gold or other [ types ]?

In Peru, you know that they are one of the biggest producers in gold, silver and copper. But you got other materials as well. We manage other materials. Numbers -- the names don't come up to me now. But palladium, for example, we got other type of precious metals as well. But basically, it's gold, silver and copper.

All right. You mentioned copper. Is that something you work with as well?

Yes.

The next question comes from the line of Suhasini Varanasi from Goldman Sachs.

Just one for me, please. Judging by your commentary around International, Automated Solutions effects, et cetera and also your commentary around passing on higher fuel cost to customers, would it be fair to say that your growth rate at the end of the quarter was a lot higher than the average that you printed and therefore, that's a trend that we can probably expect, depending on how the macro evolves into the next quarter as well?

Sorry, Suhasini, we didn't get all of your question. You said in the beginning, you were commenting around International, Automated Solutions, et cetera -- the last part of the question.

So I just wanted to check whether the growth rate in March, end of the quarter was higher than what you printed for 1Q as a whole. And therefore, is that something that we can look for going into the next quarter as well qualitatively?

I mean in terms of the fuel fees indexation that we have, that is true that some of that happened to a larger extent in March. So there, earlier in the quarter. You can...

Yes. I mean that's the growth due to the fuel fee that came mainly in the U.S. So we've got 2 countries where we have those fuel metrics in the contract. That is U.S. and France to a certain extent. We saw the big impact in the U.S. and -- on the revenue. And we expect, for example, Q2 -- the beginning of Q2, it has been as high as it was in Q1.

Now we don't know how long the Iran war will last. But as far as the fuel costs are high, then we should see that growth in revenues well from [ PMT ].

So just a follow-up. The International and the FX business did not see any phasing on growth through the quarter?

Not really.

The next question comes from the line of Dan Heimer from SEB.

Yes. A couple of questions from my side. Maybe starting a little bit on the U.S.A. margin, which was the strongest one on record. Just to clarify the positive effect from the sales leaseback here. It sounds like it's quite minor, like SEK 10 million or so. if you can confirm that. So also just for this, it would be -- yes, your best quarter ever margin-wise in the U.S. Yes.

The sale of the facility generated approximately $1 million in [ EBITDA ] in Q1.

Perfect. And following up on that, I would assume that Burroughs is still quite a bit dilutive. I was just curious to hear how far progressed you are with the integration there?

So first of all, answering your question, yes, it is diluting the margin. We're still in early stages with Burroughs. Our immediate focus is more on solving some existing quality issues to ensure service excellence. And then once we achieve that, then we will shift our efforts into improving margins and efficiency.

Yes. Perfect. And final one from my side. I noticed that the headcount is down 600 FTEs year-on-year. I assume it's impacted by the restructuring measures. But can you remind me how you're thinking about further restructuring measures for 2026, primarily for Europe? I noticed you didn't record any items affecting comparability in this quarter. Would you say the FTE reductions are done now? Or do you see certain countries where you need to adapt still?

So you're mixing two things here. First of all, we focus in the U.S. Yes, we had 600 employees year-over-year, less FTEs in the U.S. due to operational efficiencies, and we will continue with the work there. If we look at Europe, we didn't have any restructuring cost in Q1 2026. But we do expect to have restructuring cost in the remaining part of the year. again, not to the extent of what we had in 2025. But there's still work ongoing on the different European countries.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Aritz Uribiarte for any closing remarks.

So thank you very much, everyone, for listening in, and please reach out if you have any follow-up questions. Thank you. Bye-bye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Ladies and gentlemen, welcome to the Loomis Extra call regarding the announcement acquisition of Hermes Transportes Blindados. I am George, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead.

Good morning, and welcome to our call where we will present the announced acquisition of Hermes Transportes Blindados. My name is Aritz Larrea, and I'm the President and CEO of Loomis. And with me here today, I have our CFO, Johan Wilsby; and our Head of Investor Relations and Sustainability, Jenny Bostrom. It's great to see so many of you joining on short notice to hear us present our largest acquisition to date.

Yesterday, we announced that we had entered a share tender agreement with, among others, CVC Capital for their shares in Hermes, marking our entry into Peru. The transaction will be conducted through a public offer tender. But before I go into details of Hermes and the transaction itself, let me spend some time explaining why Peru is an attractive market for us.

For many years, Loomis has operated in Argentina and Chile, and we have long explored different opportunities to expand our business in Latin America. As you know, this is one of the strategic priorities we presented at our Capital Markets Day in 2024. Among the countries we have been closely monitoring is Peru. I assume most of you are familiar with Peru, but let me provide some context.

As shown on the map, Peru is located on the West Coast of the continent and has a population of approximately 32 million people. It stands out as an attractive market due to its high and resilient level of cash usage, where cash continues to account for a majority of transactions, particularly when including the informal economy. Furthermore, the country has a solid macroeconomic environment and maintains an independent central bank.

Peru is one of the faster-growing economies in Latin America, supported by investment, exports and prudent fiscal policy. It has a stable macroeconomic framework characterized by low public debt and a conservative fiscal management across multiple governments. In addition, Peru is one of the world's largest producers of silver and a major gold producer. It also ranks among the largest global exporters of copper. Finally, banking penetration remains relatively low, which has historically supported a high reliance on cash despite the growth of digital payments. Given these factors and favorable market conditions, Peru is an attractive country for a company such as Loomis, looking to expand in Latin America.

Let's turn on to the next Slide to take a closer look at the company. We have now initiated the process to acquire Hermes, a company founded in 1985 and listed on the Lima Stock Exchange. The company brings more than 40 years of experience in secure logistics and risk management within Peru's financial system. It operates under the supervision of the superintendency of banking, insurance and pension fund administrators.

Hermes has built a leading market position with an estimated 50% market share and a diversified client base of approximately 1,000 customers across the country. It serves key sectors, including financial institutions, retail, mining, utilities and government entities, acting as a critical partner to both private and public banks. Hermes is at the center of Peru's cash circulation system and plays a fundamental role in society.

So what does Hermes offer? In many ways, Hermes operates similarly to Loomis. The company provides secure transport, processing and custody of cash and valuables. Its services also include ATM operations, cash collection and smart cash handling solutions that help automate processes and reduce risk. Beyond cash, Hermes delivers specialized secure logistics for industries such as mining, including the high-security transport of precious metals and other high-value minerals.

Hermes operates a well-established nationwide platform of 19 branches with presence in most parts of the country. The company employs more than 3,200 professionals delivering its services every day and operates a stable fleet of purpose-built armored vehicles. In addition, it has begun expanding into automated solutions with an installed base of around 1,000 smart safes.

Turning to the numbers in 2025, the company reported revenues of approximately SEK 1.2 billion, further highlighting the strength, resilience and maturity of the business. Overall, Hermes stands out as a trusted and strategically important partner to many of Peru's most significant organizations. I'm truly impressed by Hermes and its strong track record of growth, profitability and innovation. And I look forward to continuing this journey together.

Turning on to the next slide. Hermes operates across 5 business units, each focused on risk management solutions. These services support the financial, retail, government services and mining sectors and align closely with our own business lines and areas of expertise. The first is valuable logistics. Here, Hermes provides secure transportation of banknotes, coins, precious metals, jewelry and other high-value assets. This also includes cash management services as well as ATM supply and maintenance with more than 3,200 ATMs nationwide in 2025.

CIT [ lite, ] also known as Smart Security, serves small and medium-sized retail businesses. It focuses on the collection, transport, processing and storage of cash and variables. Hermes has built a strong position among SMEs, an area that is also a key strategic growth priority for us at Loomis. Hermes [indiscernible] is comparable to our automated solutions offering. It automates cash validation and accounting, enables real-time monitoring and produces detailed reports to support operational control and financial close.

Hermes also offers customized seller services and branch administration outsourcing, including the operation of bank branches and payment locations for, among others, financial institutions and utility companies. Finally, through specialized logistics, Hermes delivers tailored solutions such as national and local courier services, document processing, mailroom management and digital storage services.

Let's move on to the next slide where I will dive into the strategic rationale for this acquisition. This transaction marks a key milestone in our ambition to expand Loomis' presence in Latin America. With this acquisition, we increased our footprint in the region from 2 to 3 countries by entering Peru to a market-leading player where we see both strong strategic fit and continued growth potential. Hermes' strong position among small- and medium-sized businesses provides a solid platform to expand our automated solutions offering in Peru. The company already has an installed base of around 1,000 smart safes giving us an excellent foundation to build on and to introduce Loomis' own cash handling automated solutions under [ Tina ] brand.

This creates clear opportunities for both organic growth and cross-selling. In addition, we see meaningful opportunities to drive operational efficiencies over time. This includes areas such as procurement, where we can leverage our global scale in vehicles, equipment and insurance as well as implementation of best practices in routing, fleet utilization and security protocols. These are proven numbers within Loomis, and we see good potential to gradually enhance margins. We also see strong potential to grow within the mining sector.

Hermes is already the dominant player in domestic secure transport of Minerals across Peru. By combining this position with Loomis' international cross-border logistics and storage capabilities, we unlock opportunities to extend the offering beyond national borders and capture additional value in the supply chain. Another important opportunity lies in further digitalization. By introducing more advanced data analytics and cash flow visibility tools, we can enhance the value proposition to customers, improving efficiency, transparency and integration with the broader financial operations.

Finally, the acquisition supports Loomis' financial targets contributing to both revenue growth and margin accretion. Hermes also demonstrates strong governance and is at the forefront of sustainability in its market, aligning well with Loomis' sustainability priorities and targets. Overall, this is a transaction where we combine a strong local platform with Loomis' global capabilities, creating a clear path for long-term value creation.

Let's turn on to the next slide, where I would like to share a few personal reflections on why this is such a good fit between Loomis and Hermes. First, there's a strong cultural alignment. Both companies operate in environments where trust security and reliability are absolutely critical. In my discussions with the Hermes team, it is clear that they share our uncompromising focus on safety, operational excellence and customer trust. That is not something you can easily replicate. It has to be embedded in the culture. Second, we see a high degree of similarity in the business model. Hermes has developed a platform that, in many ways, mirrors our own combining cash in transit, cash management and value-added services. This makes the integration more straightforward and allows us to accelerate value creation by sharing best practices across operations, technology and commercial execution.

Third, I have been particularly impressed by the quality of the local management team. They have built a market-leading position in a complex environment, which speaks to the capabilities and discipline. Our intention is very clear. We want to support and empower this team, combining the deep local expertise with Loomis' global scale and experience.

Another important factor is our shared approach to governance and sustainability. Hermes operates with strong standards in both areas, which aligns well with Loomis' priorities and expectations as a global listed company. Finally, there's a strong alignment in how we view the future of the industry. Both companies recognize that while cash remains critical infrastructure, the market is evolving towards more technology-enabled and integrated solutions, and this is an area where we see significant potential to grow together.

And with that, I would also like to say that I'm very pleased to welcome more than 3,200 Hermes employees to the Loomis family. Their expertise and dedication will be a key part of our continued success going forward. Turning on to the next slide and going through the transaction details. We have entered into a shared tender agreement with CVC Capital Partners and other minority shareholders representing 99.49% of the outstanding shares of Hermes. As part of these agreements, we intend to launch a public tender offer to acquire up to 100% of the company.

While we aim to acquire all outstanding shares, the transaction is not contingent upon achieving full acceptance. The transaction values the business at an enterprise value of PEN 1,450 million corresponding to an EV to adjusted EBITDA multiple of approximately 6.6x based on 2025 financials. The acquisition will be fully financed through debt with a committed bridge facility in place from our core banking group.

From a financial perspective, net debt to EBITDA is expected to temporarily exceed 2x following the acquisition. However, this increase is short term and leverage is expected to normalize within 6 months. We remain fully committed to maintaining our investment grade credit rating. Importantly, the transaction is expected to be immediately accretive to both operating profit and earnings per share.

Moving on to the next slide, I want to show you the steps that are involved in this process. Here, you can see a high-level time line of the key steps involved in this transaction. As mentioned, Hermes is listed on the Lima Stock Exchange. To date, we have entered into a share tender offer agreement with shareholders representing 99.49% of the outstanding shares. The tender offer will be launched once certain customary conditions have been fulfilled, including change of control clauses.

We expect the offer to commence during the second or third quarter of 2026. Once launched, the acceptance period will be around 30 days. Following completion of the tender offer, the business will be reported within our Europe and Latin America segment and consolidated into the group as of closing. Closing is expected to take place during the third quarter of 2026, shortly after the completion of the tender offer. No regulatory approvals are expected to be required to complete the transaction, and a potential delisting will be managed through a separate process following the successful completion of the acquisition.

To sum up, this transaction represents a strategic milestone in the history of Loomis. With the acquisition of Hermes, we are entering Peru, one of the most attractive markets in Latin America, characterized by solid macroeconomic fundamentals, a growing economy and a high and resilient level of cash usage. Hermes is the clear market leader with a strong track record of growth, profitability and innovation and a business model that aligns closely with our own. This acquisition strengthens our position in Latin America, spans our platform for future growth and supports our long-term financial targets.

And last, but certainly not least, I'm very pleased to welcome more than 3,200 new colleagues to Loomis. Their expertise and dedication will be an important part of our continued success going forward. With that, I would like to open the call for questions.

[Operator Instructions] Our first question comes from Dan Hammer with SEB.

Yes. Interesting acquisition. A couple of questions from my side. Maybe starting a little bit on the mining exposure here. Is it possible to give any sense on how big it is in terms of sales? Also a little bit on how your international business can complement Hermes local mining logistics? I mean does it -- do you think you can take over some of the transport -- international transport or precious metals that I guess, Hermes currently hands off to other partners?

Thank you for your question, Dan. To start off, I would say that the mining services represent around 15% to 20% of Hermes' revenue. And as you know, as we're saying, what they take care of today is the domestic business going from the mining areas to the airport. We can fulfill that second leg, the international leg and offer a door-to-door solution to the customer. So there's a great potential there, as you see.

Very interesting. And maybe a little bit on the EBITDA margin of Hermes. It already looks quite robust. I mean, usually, you target margin expansion through adding technology, move up the value chain. But how much can you do here in terms of the margin? Is the infrastructure already at peak efficiency, so to say, and the potential is more towards, I guess, growth synergies? Or do you think there's cost synergies as well here?

I would say that we have cost synergies as well, but we need to look at the business. As we already talked about international part of the mining services but you also need to consider the great opportunity we have with automated solutions coming from our [ Tina ] brand, and that is a huge opportunity in Peru as well.

Perfect. And the final one from my side. I mean it seems to look quite similar to your own operation. But in terms of CapEx, et cetera, is it also similar on that line, given the EBITDA margin is quite high, but -- is it the same sort of bridge down to operating profit? Or is this one more capital intensive compared to your operations?

No, very similar to ours.

The next question comes from Simon Jonsson with ABG.

Congratulations on the transaction. Just first, a follow-up on the sales mix here. You said 15%, 20% on mining. You also highlighted some exposure to automotive solution services. Can you maybe share a bit more what that share is currently of the group?

Sorry?

Share for automated solutions.

I don't have the details now with me. What we've said is that they already have 1,000 machines. And there's a lot to explore in that sense in the Peruvian market. But I don't have all the details that you're asking for.

All right. But do you have any understanding on sort of the penetration in this market for automated solutions? Is it significantly less mature compared to Europe and North America, you would say?

Yes, it's as mature for sure. Yes. .

All right. Then on your market position. And maybe it's a bit difficult to answer, but around 50% market share, do you -- do you also see that there is more potential for bolt-ons in this country? Or do you think now you're sort of taking what you can and will try to take market shares or -- or do you think that there is also bolt on acquisition potential here? .

Not in this country, Simon.

All right. And in terms of your general presence here in Latin America now, do you think that with this, it makes even more sense to be more aggressive in the other countries in Latin America?

We already explained at our Capital Markets Day that this was going to be one of our main focuses when growing the business in emerging markets. So we keep exploring, as we've been doing for the past years in adding new countries to this Latin America business line.

All right. And just a final one on margins, and you talked a little bit about that you see even further margin potential here. But it is very high margins, of course. Can you just maybe explain a bit the reason behind that? Is it any specific category here where margins are very high? Or is it just that margins in general are much higher? Or is there anything for us to keep in mind here on the sales exposure and margin for different segments?

When you look at Latin America, you see that margins are higher, but obviously, the risk is higher as well. So that's a normal thing in our business. But I would say that aside from that, there's nothing else especially in the Peruvian market.

[Operator Instructions] Our next question comes from Viktor Lindeberg with DNB.

Starting to look a bit in the rearview mirror, to my understanding, CVC has been their main owner in the past 5, 6 years and curious to understand the business development under the control of CVC, what -- any transformation initiatives or business initiatives that have been taken here? And also, I noticed that the head count is quite a bit lower today than it was when CVC acquired the company. So it would be interesting to understand the business mix change or if the company is sort of shrinking to find better and strong position or is that information was incorrect? So starting on that and then a few more.

Viktor, I don't have all the details on what CVC has done with the company. But I can tell you that more or less when you see the past years, it has remained that. So I haven't seen any big transformation being done by CVC. Probably they have been working on efficiency as we are, and that means reducing headcount while you keep growing the business, but no other specifics there.

All right. I noticed Peru has a bit higher corruption index when looking at this world map. And I know you have been very much investing in compliance on group level and also locally. And just to see what do you see in terms of business counterpart risks here? And if that's something you need to review given your strict focus on compliance and this being a new market for you further out on the risk curve?

So in that sense, we are aware of the general corruption risks in Peru as well as in other South American countries. We obviously have done full due diligence and it indicated that the company has strict protocols in place. Yes, we have had an extensive due diligence process, including legal, compliance, labor, payroll, finance tax, IT operations and insurance. But what we see is that Hermes is committed to ensuring compliance with the regulations governing these operations, and has a strong regulatory compliance program in place.

There are no business areas within Hermes that you foresee that you might leave behind or focus less on going forward?

Not at all.

That's good. And final housekeeping question, transaction cost, assuming this approval and tendering will follow through, what kind of integration cost, transaction cost should be expected on the back of this?

No material costs are expected for that part of the process. Obviously, we've been working for a number of months of that already but those kind of M&A-related costs, we're already assuming in the P&L.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Larrea for any closing remarks.

So thank you all for listening in such short notice, and please reach out if you have any questions. We're very excited with the time ahead with this acquisition. Thank you very much. Bye-bye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Ladies and gentlemen, welcome to the Fourth Quarter and Full Year 2025 Conference Call. I'm Vicki, the Chorus Call operator. [Operator Instructions]

The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO. Please go ahead, sir.

Thank you very much. Good morning, everyone, and welcome to the fourth quarter and full year 2025 presentation for Loomis. My name is Aritz Larrea, and I'm the CEO of Loomis. And with me here today, I have our CFO, Johan Wilsby; and Jenny Bostrom, our Head of Sustainability and Investor Relations.

I'll start by providing a quick summary of our fourth quarter as well as our full year performance, and we'll also talk about our accomplishments for the first year of this strategic period before taking questions. Let's start the presentation by turning to Slide 2. We delivered a solid and positive performance in the fourth quarter with revenues reaching SEK 7.7 billion despite a 10% negative impact from changes in exchange rates.

Currency adjusted growth reached 7.5%, driven by 4% organic growth, solid despite the headwinds in our ATM business and a solid contribution from acquisitions. In the quarter, we saw very strong growth within the International and FXGS business lines due to an increased demand for the movement of precious metals, driven in part by geopolitical uncertainties. Our performance was driven not only by market conditions, but also by our expansion of the addressable market through the opening of new geographic lanes and our ability to capture global demand. We also continued to deliver strong growth within the Automated Solutions line of business during the quarter.

The business mix, along with higher efficiency resulted in an increased operating margin of 13.2% versus 12.9% in prior year, with an operating income of above SEK 1 billion. This is the highest EBITA we have achieved for fourth quarter, and I'm pleased to see that the restructuring and efficiency initiatives we have taken, successfully growing the business without increasing headcount are supporting the margin expansion.

We delivered another quarter of strong operating cash flow with a cash conversion of 99% for the year, and the free cash flow in the quarter was close to SEK 1.2 billion. This robust cash generation enables us to continue investing in the business while also delivering attractive returns to our shareholders.

In the fourth quarter, we completed the acquisition of the precious metal storage facility in Toronto that was announced in the third quarter. This acquisition strengthens our local presence in Canada and expands our depository services and storage capacity within the International business line.

During the year, we remained active in M&A while maintaining a disciplined approach to capital allocation. Despite continued investments in the business and the execution of our share repurchase program, our net debt-to-EBITDA ratio improved year-over-year. This discipline is also reflected in a return on capital employed of above 16% in the quarter.

During the quarter, we repurchased about 540,000 shares for a value of SEK 200 million. In total, during 2025, we have repurchased close to 1.5 million shares for a value of SEK 600 million. The Board of Directors has proposed a record high ordinary dividend of SEK 15 per share to the Annual General Meeting. And in addition, the Board of Directors has proposed an extraordinary dividend of SEK 5 per share in an extraordinary dividend. This brings a total distribution to shareholders above SEK 1.3 billion.

Let's now turn to our reporting segments, starting with Europe and Latin America. Our European and Latin American segment delivered a solid performance in the quarter with revenues reaching close to SEK 3.7 billion. We achieved an organic growth of 1.9%, which was strong considering the communicated decline in the ATM business line. The uncertain geopolitical climate has increased global demand for secure logistics and the management of physical assets such as precious metals, and our teams have successfully grown the business in this environment. It's impressive to see that the International business line grew over by 30% in the quarter compared to prior year.

The operating margin increased by 40 basis points to 12.5%. And for the full year, we increased our operating margin by 0.7 percentage points to 11.8%, demonstrating that our focus on operational efficiency yields positive results.

Let's move on to the next slide to talk about the U.S. The U.S. segment delivered another strong quarter. If we adjust for the currency impact, which was negative 13%, the U.S. achieved record high revenues and operating profit. Organic growth was 5.5%, and the acquisition of Burroughs contributed positively to the overall growth.

The International and Automated Solutions lines of business had notably strong performance in the quarter. It's worth highlighting that it was the 16th consecutive quarter that the Automated Solutions business line has achieved double-digit organic growth.

Our implemented operational efficiency measures continue to show results, allowing us to grow the business without adding employees. At the same time, we have secured a high service quality and maintained customer satisfaction. The integration of Burroughs into our U.S. operations and our Loomis culture is progressing as expected, and we are still early in the integration process. Burroughs is a strong strategic fit, and it allows us to provide a fully integrated ATM and Automated Solutions service offering to our customers.

We are actually working on stabilizing the revenue and on improving our service quality. Once this is achieved, we will shift our efforts to improving operational efficiency and over time, focus on gaining market share. The volume growth, combined with improved efficiency contributed to the improvement of operating margin. The operating margin surpassed 17%, which is a new record for us.

Let's turn to the next page and talk about SME/Pay. Revenues in the SME/Pay segment increased to SEK 71 million in the quarter. Nearly 40% of this revenue now comes from core and adjacent business lines, demonstrating that our strategic focus on SMEs is delivering both growth and margin. The reduction in the operating loss compared to the previous year is in line with the strategic priorities for the segment. Transaction volumes within the Loomis Pay business line increased 24% in the quarter compared to the previous year and reached SEK 2.3 billion.

The migration to new POS platforms allows Loomis Pay to focus on larger SME customers in additional customer verticals. In this process, Loomis Pay has chosen to not migrate nonprofitable customers, which somewhat impacts settled transaction volumes going forward.

Let's now move to the next slide, where I'll share a few updates on our sustainability progress. I'm pleased to share that we are progressing well towards our strategic sustainability targets. We have reduced our recordable work-related injury rate by 10% in 2025 compared to 2024. While this is in line with our target, we have never done and will continue our efforts to keep our employees safe. The Board has adopted a new group operational health and safety policy. This program will be rolled out during 2026, strengthening our group-wide focus on employee safety.

Compared to 2024, we have reduced our Scope 1 and 2 emissions by 4%, if we exclude the emissions from the acquisitions of Burroughs and Kipfer-Logistik. Including these, we reduced emissions by about 2%. Continuing to grow the business while reducing emissions is, of course, challenging, but something we are committed to. And we, of course, aim to do so in a cost-efficient way that also supports our business. Efforts are already ongoing to include Burroughs in a carbon reduction plan by renewing their vehicle fleet. To put this in perspective to our CO2 targets, with the restated baseline for acquisitions, we have reduced our emissions by close to 26% compared to 2019, which is a step in the right direction to reaching 34% reduction by 2027.

Now let's turn to the income statement slide, where I'll begin by noting that despite a significant negative impact from exchange rate fluctuations, we have achieved strong currency adjusted growth. This quarter includes costs classified as items affecting comparability, primarily related to the communicated impairment of goodwill as well as provisions for the ongoing legal case in Denmark. The impairment also had an impact on the effective tax rate since this was largely nontax deductible.

For 2026, you can expect an effective tax rate of about 30%. Our financial net has declined compared to the previous year, following lower financial expenses driven by declining interest rates. I would also like to highlight that also our net debt-to-EBITDA ratio has declined year-over-year and is well below our ambition to be below 2x.

Now let's move on to the next slide, where I'll summarize our 2025 performance in relation to our history. As we can see, we have a stable and resilient business model that continues to deliver. We ended 2025 with a record high operating margin of 12.7%. Despite the significant currency headwinds, we maintained the level of SEK 30 billion in 2025. Our currency adjusted growth was 6%, fully in line with our financial targets for the strategic period. If the exchange rates had been at the 2024 levels, our revenue would have been above SEK 32 billion for the year.

2025 was the beginning of a new strategic period for us. It has been a year characterized by macroeconomic uncertainties, a heightened emphasis on societal resilience and an increase in demand for security services amid a shifting and volatile global geopolitical landscape. In this environment, we made significant progress against our strategic priorities and delivered on our commitments, positioning the group well for the remainder of 2025-2027 period.

Before opening up for Q&A, I want to remind you of what we have committed to last year at our Capital Markets Day and what we have achieved after the first year of the strategic period. Here, you see our 4 strategic priorities for '25 to '27, and I want to share my perspective on where we stand in relation to where we said we would be.

Starting with growing in our established markets, a clear focus here is to accelerate growth within the SME customer segment. We are seeing healthy revenue momentum and solid margin contribution from SMEs across our key markets. We have also seen strong performance within International and Automated Solutions. However, as you know, we have been managing the impact of ATM business losses and are in the process of restructuring certain markets in Europe.

Cash infrastructure is increasingly being called out as being an important piece in crisis preparedness and societal resilience, and we are a key part in keeping cash flows functioning in society. At the same time, we keep diversifying and our noncash-related services keep growing as well. In this environment, we have adapted and grown our addressable market within precious metals by opening new geographical lanes and expanded our storage capacity. While we have some more to do over the next couple of years, I'm confident about our journey.

Moving to the second pillar. We have been very active in M&A during the year. Within core, we have acquired expertise and capacity within temperature-controlled logistics for pharmaceuticals as well as acquired a new storage facility in Toronto. Within adjacent, we have expanded into first and second-line maintenance of ATMs and Automated Solutions. And lastly, we have strengthened our digital offer on the POS side in Spain. We will continue to focus on generating both geographical presence but also diversifying our product and service portfolio through value-creating acquisitions.

Our margin expansion is a clear demonstration of our progress within the third pillar, driving operational excellence and scalability. Our restructuring initiatives in Europe and Latin America are showing results, and we've been seeing clear margin improvements over recent quarters. In the U.S., the staffing planning measures and efficiency programs within CIT and CMS that were implemented since last year have consistently contributed to our profitability.

And lastly, as I already touched upon earlier, we are advancing on our sustainability initiatives. We are dedicated to focus our efforts on where we have the most impact and where it also makes sense from a business perspective. We have submitted climate reduction targets to the science-based targets initiative for validation, taking a clear step towards focusing on reducing our Scope 3 emissions.

This concludes my summary of the quarter and the year. Operator, we are now ready for questions.

[Operator Instructions] We have a question from Simon Jonsson, ABG.

I hope you can hear me. A few questions from my side. First, on the International business, I think, obviously, it was one of the positive surprises on the report. Taking a step back, you have been clear before that comps will become tougher. And you also said before that some of these volumes should be viewed as temporary or short-term oriented. Of course, a lot has changed here in the recent months regarding the precious metals prices and so on.

But my question is, where do you think we stand now from a broader perspective for your business? And do you think the long-term market dynamics have changed in any way? And I mean, what should we expect here in the coming quarters? Was there -- you said it before that we should view it as temporary, but I mean, was it even more temporary this quarter? Or yes, can you say anything about that?

Simon, thank you for your question. First of all, as you said, we need to understand that these businesses are cyclical in nature. But it is true that we have worked on growing our addressable market, as I said before, within the VIT. We have diversified our portfolio, expanding into the pharmaceutical. And we still have other areas like mining, let's say diamond and jewelry, low-value packages.

When it comes to the trend, we were saying that we had difficult comps because we had a big increase last year in fourth quarter due to the U.S. tariffs. But the shipments, especially of silver have remained strong. And then both the prices of gold and silver have increased, and that benefits us. How do we see this trend is difficult to say, but we think it will remain very similar during the first quarter, first 2 quarters. And then I don't have a view on how it will end up the year. But we will keep increasing and try to grow the business organically.

Got it. And then moving on to other business areas. I mean, Automated Solutions also remains a very good growth driver, remain at good levels here. It looks like the growth is mainly coming from the U.S., but also from a broader perspective, can you maybe give us an update about the market for Automated Solutions mainly, I think, smart safes, for example, which you comment about on the CMD, for example. So maybe an update on what's going on in the market for -- in the U.S. specifically on smart safes. And do you think you're growing in line with the market? Or do you think you're taking market shares, or yes?

Here, it varies, as you said, when you look at the different regions. So I would say the first thing is we still have a strong pipeline in Automated Solutions in both regions. I would say that we have been growing -- gaining market share in both regions as well as in the U.S. and in Europe.

In Europe, although we started the year a bit slower, I think the last -- the second half of the year has been really good when it comes to Automated Solutions. At the same time, we've taken advantage of the acquisition that we did with CIMA. CIMA is now our main supplier, not just in Europe, but also we're also exporting safes and recyclers and front office machines to the U.S. where we plan on growing.

And that's what we said at the Capital Markets Day, Simon. I mean it's not only smart safes. We're talking about recyclers. We're talking about front office machines. We're talking about kiosks. So everywhere where we could add the cash component to the digital or the technology-driven solutions, we will be there. And as I said before, in the U.S., it's been 16 consecutive quarters growing at double-digit growth. As I said, we still have a strong pipeline, and that will remain strong in the following year.

All right. Do you think it makes sense to assume that you expect double-digit growth to continue then?

We will continue being strong, yes.

All right. But your view is that the underlying market is growing double digits?

Yes.

Yes. Moving on to maybe my last question here on capital allocation or a two-part question basically. You didn't announce any buybacks. I know sometimes you don't do it on every quarter, but I mean, it can be obvious reasons for it. But can you say anything on the buybacks and why you don't announce the program here? Or how should we view it? So yes, maybe start there.

Yes. To summarize, let me tell you that our capital allocation priorities remain exactly the same. Our aim is to use our capital in the best way to generate return and to maximize distribution to shareholders. That has not changed. So we will continue maximizing distribution to shareholders. That's what I would say.

Yes. All right. Do you think it's fair to say that you're also balancing the buybacks with -- now you have extra dividend. So should we keep that in mind that you are viewing it as a total pool of capital return?

Share buybacks are always in our mind, and we will continue doing share buybacks in the future.

Yes. All right. And then lastly on acquisitions. I think you made it clear that you will continue to look for value accretive acquisitions. But can you say anything about what is going on with the pipeline right now? Do you think it's -- is the pipeline building? Are you changing any sort of areas you're prioritizing? Have you made further shifts into how -- into what you look for, for example, do you look more into international areas to broaden that business? Or yes, where are you currently looking? And where do you think the M&A pipeline is more tilted towards?

So the M&A pipeline remains the same. It's a strong pipeline. We have not shifted. I mean when we presented our strategy at the Capital Markets Day, we did talk about not only investing in CIT, CMS, we were looking into the VIT and VMS areas as well, and we've proven to do that with the facility that we acquired in Toronto and the pharmaceutical business company as well. And we have those in our pipeline as well. So we haven't made a shift, the pipeline remains the same and our strategy remains the same as what we communicated. And it's both cash and noncash companies that we're looking into.

And then as I always tell you, I mean, it all depends on meeting the seller expectations when it comes to price because obviously, we want these acquisitions to be accretive to us. But no major shift. And yes, we're focused on the International business as well.

All right. And in terms of price development, what have you seen here in recent quarters or in 2025 in general, what did you see in terms of shifts?

I think it's pretty stable. I mean I talked about in the past that before COVID, everybody had very high expectations. Then after COVID, those have come down. As I told you, we need to meet the seller and us regarding the price, and prices are more or less stable. That has not changed either.

If you look into international, for example, obviously, with such a strong quarters in international business companies, the price is higher, obviously. But due to that it's cyclical, we need to do the right analysis.

[Operator Instructions] Mr. Larrea, there are no more questions registered at this time. I would like to turn the conference back over to you for any closing remarks. Thank you.

Thank you very much all for listening in. And please reach out if you have any follow-up questions. Thank you. Bye-bye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Ladies and gentlemen, welcome to the Third Quarter 2025 Conference Call. I am George, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Aritz Larrea, President and CEO.

Thank you very much. Good morning, everyone, and welcome to the third quarter presentation for Loomis. My name is Aritz Larrea, and I'm the CEO of Loomis. And with me here today, I have our CFO, Johan Wilsby; and Jenny Boström, our Head of Sustainability and Investor Relations.

I'll start by providing a quick summary of our third quarter performance before taking questions. Let's start the presentation by turning to Slide #2. We delivered a solid and positive performance in the third quarter with revenues reaching SEK 7.6 billion and currency-adjusted growth of 7.1%. Despite the expected decline in our ATM business, the group achieved a strong organic growth of 3.9%. This was also the first quarter to include the full results of Burroughs, which made a meaningful contribution to our overall growth and further strengthened our position in the U.S. market.

Our efficiency initiatives continue to deliver strong results with the operating margin rising to 13.2%, up from 12.9% last year. We've successfully grown the business without increasing our headcount, further driving margin improvement and demonstrating the impact of our ongoing operational discipline. We delivered another quarter of strong operating cash flow with a rolling 12-month cash conversion of 95%. This robust cash generation enables us to continue investing in the business while also delivering attractive return to our shareholders.

Our commitment to optimize capital allocation to drive returns is also reflected in the increased return on capital employed, which was above 16% in the quarter. While we have been active in M&A, invested in our business and continued our share repurchase program, our net debt-to-EBITDA ratio has improved compared to the second quarter. During the third quarter, we completed 4 acquisitions and signed an agreement for a fifth one. I will address each later on in the presentation. As announced yesterday, the Board has also approved a new share repurchase program of SEK 200 million for the fourth quarter.

Let's now turn to our reporting segments, starting with Europe and Latin America. Our European and Latin America segment delivered a solid performance in the quarter with revenues reaching close to SEK 3.7 billion, and the organic growth was 2.3%. We have seen a different mix of performance across our business lines during the quarter. While we continue to experience strong demand for our cross-border valuables transportation and storage solutions within the international business line and the Automated Solutions business delivered solid results, the ATM business declined due to previously announced losses in Sweden and France.

In addition, there was a negative impact due to the ATM consolidation market in the U.K. While these developments have led to short-term volume headwinds, we expect the long-term industry trends to continue to favor specialized providers. In addition, revenue in Europe was also affected by the ongoing restructuring activities in Germany, where we continue to discontinue unprofitable contracts as part of our efforts to strengthen profitability. These developments have temporarily affected growth in the region, but our initiatives are consistent with our strategy to focus on efficiency, scalability and long-term profitability.

We can also see that the restructuring initiatives implemented in recent quarters are having a positive effect on profitability, while with the operating margin increasing to 12.9% versus 12.4% in prior year. In September, we completed the acquisition of Kipfer-Logistik announced in July. Kipfer-Logistik is a leading pharmaceutical logistics provider based in Switzerland, and this acquisition significantly accelerates the growth of Loomis Pharma.

By integrating a well-established company specialized in high-security, temperature-controlled road freight, we are further strengthening our international business line, where Loomis already provides cross-border, high-security logistics for banknotes, precious metals and jewels, including customs clearance. With our long-standing expertise in Secure Logistics, we continue to explore opportunities to expand and enhance our services in this area.

Let's turn to the next page and talk about the performance in the U.S. The U.S. segment delivered another strong quarter. If we adjust for currency impacts, which was negative 9%, the U.S. achieved record high revenues and operating profit. Organic growth was 5.4% and the acquisition of Burroughs contributed to the overall growth. The International and Automated Solutions lines of business had notably strong performance in the quarter. Our implemented staffing planning measures have enabled a more efficient way of working, allowing us to grow the business without adding employees.

At the same time, we have secured a high service quality and maintained customer satisfaction. The volume growth, combined with improved efficiency contributed to the improvement of operating margin. The operating margin increased to 16.3%, up from 16.1% in prior year. This is the first full quarter with Burroughs, and we continue working on integrating their business into our U.S. operations and our Loomis culture. We are still early in the integration process, but while the business is adjacent to our existing operations, it represents a new line of work for us, one that is highly technology-driven and involves technical service teams we previously did not manage.

We are seeing great progress and are already observing how it complements our current business. Burroughs is a strong strategic fit as it allows us to provide a fully integrated ATM and automated solutions service offering to our customers. In August, we acquired Keys Armored Express, a CIT service provider operating in the Florida Keys area. We've also signed an agreement to acquire Precious Metals Vault and storage facility in Toronto. This acquisition will strengthen our local presence in Canada and increase our depository service and storage capacity within the international business line.

Let's turn to the next page and talk about SME Pay. Revenues in the SME Pay segment increased to SEK 65 million in the quarter. Nearly 40% of this revenue now comes from new small- and medium-sized customers, demonstrating that our strategic focus on SMEs is delivering both growth and margin. We're also making strong progress on the digital side. Loomis Pay continues to scale, broadening our payments offering and strengthening customer loyalty. Transaction volumes through our payment gateway surpassed SEK 2.5 billion in the quarter, representing a 23% increase compared to last year.

In addition, in July, we took an important step in Spain with the acquisition of 2 POS companies in Catalonia. This significantly strengthens Loomis Pay presence in the region, enhances our POS capabilities and expands our customer base among SMEs.

Let's now move to the next slide, where I'll share a few updates on our sustainability progress. This quarter, we adopted 2 new sustainability policies, an environmental policy and a human rights policy, further reinforcing our commitment in these critical areas. Our environmental policy includes our emissions reductions targets to 2030 with the actions being taken to reach these. The key focus here remains on reducing emissions from our vehicle fleet.

For the first 9 months, we have reduced our Scope 1 and 2 emissions by approximately 2% compared to prior year. I want to highlight that the increase you can see in emissions in the graph here compared to the second quarter is largely related to the acquisition of Burroughs. Initiatives are ongoing to align Burroughs to our carbon emissions reduction plan. Continuing to decrease emissions while growing the business is, of course, challenging, especially due to difficulties with charging infrastructure for an electrified fleet, but something that we are fully committed to.

As a global employer with an important role in society, it is crucial to uphold fundamental human rights across our operations and value chain. Our new human rights policy reinforces our dedication to safeguarding the rights of our workers and how we intend to uphold our efforts in addressing actual and potential human rights.

Now let's turn to the income statement slide, where I'll begin by noting that despite a significant negative impact from exchange rate fluctuations, we achieved a strong currency adjusted growth. This quarter includes costs classified as items affecting comparability, primarily related to the ongoing restructuring efforts in Europe and Latin America. Our financial net has declined compared to previous years, following lower financial expenses, driven by declining interest rates.

I would also like to highlight that the effective tax rate has gone up to 30% for year-to-date 2025 due to changes in our assumptions for deferred tax assets. This year-to-date adjustment impacts the effective rate in the quarter. Additionally, the tax rate in 2024 was also lower due to the U.S. green tax credits, which have now been removed. For the full year, we expect an effective tax rate of about 30%. Despite the considerable currency headwinds and higher effective taxes, earnings per share rose to SEK 7.83 per share.

I would also like to highlight that also our net debt-to-EBITDA ratio is about the same level as prior year, and we also see an improvement compared to the second quarter, even after several M&A and continued share repurchases.

Now let's move on to the next slide, where I'll provide a longer-term view of our performance. As we can see, we have a stable and resilient business model that continues to deliver. We delivered a strong third quarter, and I'm confident in our journey ahead. Our restructuring initiatives in Europe and Latin America are showing results, and we've seen clear margin improvements over recent quarters.

On a rolling 12-month basis, we generated over SEK 30 billion in revenue and reached an operating margin of 12.6%. Currency adjusted growth was 6.1%, fully in line with our financial targets for the strategic period. The major focus in this strategy is accelerating growth within the SME customer segment. This is already contributing to our performance. We have seen healthy revenue momentum and solid margin contribution from SMEs across all our key markets.

As we look ahead, it's important to recognize that we are up against a very strong fourth quarter last year, which benefited from favorable movements with U.S. tariff uncertainties. We're also managing the impact from ATM business losses in Sweden and the consolidation of ATM networks in France, both impacting our European operations.

In addition, there's a negative impact due to ATM market consolidation in the U.K. compared to Q4 last year. That said, we still see solid opportunities for organic growth, both with our actual customers as well as with SMEs. And as we outlined at our Capital Markets Day, value-creating M&A will continue to be a key lever in our strategy going forward.

This concludes my summary of the quarter. Operator, we are now ready for questions.

[Operator Instructions]

Our first question comes from Simon Jönsson with ABG.

I want to start off with the M&A track. I think it's nice to see that you are more active again as you have been talking about, of course. And I wonder specifically about Burroughs, you mentioned it a bit, and you have had some time now to digest it. So my question is what you're seeing in terms of the turnaround on margins in Burroughs, if that is something that you have already started to see a positive impact on? I mean, the margins in the U.S. were quite good despite the full integration of Burroughs. So I guess I wonder if you have seen any margin impact already in Burroughs.

Thanks for the question, Simon. I would say that it's still early stages with Burroughs, but our immediate focus is just on resolving some existing quality issues to ensure service excellence. Once this is achieved, we will shift our efforts to improving operational efficiency and margins, with the objective of making the business margin accretive over time as we promised when we announced the acquisition.

All right. So I'm guessing that it's fair to assume that it remains quite margin dilutive here as of right now, at least.

You're right, yes.

Then I wonder about the SME Pay segment, just specifically on the organic growth acceleration we saw here in Q3. If there are like any specifics you could point to here, like bigger customers or something that drove the organic growth acceleration Q3?

So as we explained at the Capital Market Day, we've been always focused on big retailers and big banks. SME was never our focus. And we shifted that, and that has been a shift that our sales teams have made. And we've seen an important progress there. And consider that Q3 also has the seasonality, the normal seasonality that we have in Europe, but it was a great quarter from that perspective, and we expect the following quarters to continue the same way.

All right. Great. Then lastly, maybe a bit more general reflections, but on Latin America and maybe specifically on Argentina, I mean, it continues to look like the business environment is improving, more politically stable and so forth. So do you have any general reflections right now, what's going on? And if that's positive or negative for you?

I think, I mean, when you look at Argentina, it's really small when you look at our group. But I think that progress has been made there from the country side. We keep investing there, and we're looking into growing in that market as well inorganically. So it keeps being an interest market for us.

Our next question comes from Dan Johansson from SEB.

A couple from my side. Maybe firstly, I was curious to hear how we should think about the revenue mix right now. I noticed you continue to have very good momentum in both Automated Solutions and also international, which is, of course, good for margins and CIT is down like 5% or so versus last year. And I mean, long term, your mix shift will, of course, continue, but it would be interesting to hear how you think about business mix more near term for coming quarters. Do you see sort of a near-term recovery in CIT? Or should we expect these trends to continue and revenue mix to continue to be supportive ahead here?

Yes. Thanks for the question. And my first comment there would be, I was surprised on your comment around CIT because we should look at the business lines currency adjusted, and I don't see that decrease happening in CIT. Looking forward, as I said in the call, I mean, we're facing -- we're up against a very strong fourth quarter that we had last year. We had the favorability of the U.S. tariffs uncertainty there. And we are having a negative impact on the ATM business due to the losses in Sweden, France and the U.K., and that will impact our European operations. But we keep working on finding alternatives. And as you've seen, for example, our international business, despite the slowdown due to tariff uncertainty, the business has also keep growing. So we keep looking at other revenue streams as well.

Yes. Fair point on the currency effect there. But also interesting on international. I mean, as you say, is the performance and the momentum in international sort of even throughout the quarter? Was there any notable difference in growth rate July versus September and beginning of October? I mean, before it was tariffs, but now it seems to be other factors driving the performance. So a little bit of momentum throughout the quarter. And also, is there anything in particular driving the very strong performance you have in international still now?

I mean the front of thing we have with international, Dan, is that it's not a recurring business. So we can't see it as we see our domestic business there. We do expect the international business line to slow down a little bit versus what we've had in Q3. But again, as I told you, we're looking into how can we keep growing this business and keep expanding as we did with pharma, keep expanding to other verticals and other areas of interest as well.

Yes. Makes sense. Interesting to follow. And maybe a final one, just a small comment there on the ATM market consolidation in the U.K., just so I get it right there. Did you experience an impact already this quarter? Is that more gradually ahead as we move into Q4 and further on here?

Sorry, I didn't catch that question. Can you repeat again, please, Dan?

No, it was just -- did you see the ATM slowdown in U.K. already this quarter? Did it impact the numbers in Q3? Or is that more for Q4 and going forward here?

Yes. You should expect more or less the same trend, rather trend in Q4 and first half of next year.

The next question comes from Viktor Lindeberg with DNB.

Maybe following up on Dan's question on U.K. as a start. And can you quantify the amount of the contract or contracts that you've lost so we can pin down the magnitude of this?

We don't disclose those numbers, Viktor.

Okay. But it's fair to say that it was already in the full quarter of Q3?

It has been -- yes, it's been in the whole Q3 quarter. That's correct.

Okay. You mentioned the tax rate, and it's come up to about 30%, and you guide for that for the full year as well. Is that a good ballpark proxy going into next year as well?

Yes, I would say so for now.

And on the tax rate from a cash tax perspective, the cash tax has come up quite a lot this year. Are there any one-off items, if you will, in that amount? Or should we pencil in similar, call it, cash tax rates going into next year as well, do you think?

No, that's going to come down because we had a delay of U.S. tax payments from '24 that came into '25. So they are artificially large this year. And that piece will wash out when you get into '26.

Super. That's very helpful. Two final points. One very small on your Loomis Pay and SME. I noted you have about SEK 9 million of revenue now in automated solutions in this segment, and that's quite an astonishing number for the small size of that segment. But curious to understand, is this Automated Solutions revenue a product sale similar to CIMA? Or is it actually more installed base type of revenue, more recurring in that sense?

No, it's exactly the same. The only thing is that when you look at CIMA, you have a huge portfolio of solutions, and we're talking about a smaller range of solutions.

Yes, that was my question. So if it is more the actual product installed generating SEK 9 million in the quarter and then in that sense that we maybe can expect SEK 9 million also in the coming quarters or if it's more product sales?

Additional product sales and recurring revenues.

Okay. Super. Final question on the U.S. and automated solutions growth accelerated quite dramatically. And my numbers tell me 31% in organic terms. But that begs the question, if you have added revenues from Burroughs or something else into that segment?

Yes, you have revenue coming from Burroughs as well.

All right. So can you give us an indication on the underlying SafePoint or Automated Solutions organic trend? Is it similar to what we have seen in the mid-teens or so? Or has it started to deviate?

I think you're right that it's more or less same.

[Operator Instructions]

There are no more questions at this time. I would now like to turn the conference back over to Mr. Larrea for any closing remarks.

Thank you very much all for listening in. Please reach out if you have any follow-up questions. Thank you. Bye-bye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect.