Loomis announces impairment of goodwill and provisions in the fourth quarter 2025

Loomis will record a non‑cash goodwill impairment of approximately SEK 320 million in Q4 2025—primarily related to its UK operations after ATM market consolidation weakened future projections—and an additional SEK 40 million provision following a Danish court ruling in a legal dispute dating back to 2018; both items will be reported as items affecting comparability in the Europe and Latin America segments and do not impact revenues or reported EBITA. The charges are preliminary pending final reporting and audit in the full‑year 2025 results to be published on February 4, 2026, and the Danish case will move to a separate damages phase.

Analysis

Loomis will recognise a non-cash goodwill impairment of approximately SEK 320 million in Q4 2025, primarily tied to its UK operations after ATM-market consolidation weakened future business projections, and will take an additional provision of about SEK 40 million related to a long-running Danish legal dispute; the company states both items will be reported as items affecting comparability in the Europe and Latin America segments and will not impact revenues or reported EBITA. The charges are preliminary and will be finalised and audited in the full-year 2025 report to be published on February 4, 2026, while the Danish case moves into a separate damages phase following a court ruling.

Because the impairment is non-cash and targets goodwill, the immediate effect is on balance-sheet carrying values and shareholders’ equity rather than operating profitability; investors should expect reductions in reported net assets and potential pressure on metrics that depend on equity (adjusted EPS, ROE, leverage ratios), even though EBITA is unchanged. The UK-specific impairment highlights a structural headwind from ATM market consolidation that could depress segment cash flows beyond the current charge, warranting closer segment-level monitoring.

Loomis reported revenue of more than SEK 30 billion in 2024 and operates around 400 branches in 27 countries with 24,000+ employees, so the SEK 360 million combined charge is material to equity but modest versus group revenues; the main near-term informational event is the audited full-year report on February 4, 2026, which will confirm final amounts and any further disclosures about contingent liabilities or strategic responses to the UK market shift.

Key Decisions for Investors

• Await the audited full-year 2025 report on February 4, 2026 before materially changing positions since the SEK 320m impairment and SEK 40m provision are preliminary
• Recognise that revenues and reported EBITA are unchanged but reassess balance-sheet metrics (goodwill, equity, leverage, adjusted EPS/ROE) for potential impact on valuation and covenants
• Review and stress-test exposure to Loomis' Europe and Latin America segments and consider reducing or hedging exposure if UK ATM-market deterioration signals longer-term cash-flow weakness
• Monitor the Danish litigation as it enters the damages phase and any further provisions or contingent liability disclosures in the February report that could increase net-asset impact