Loomis: A Record Quarter and a Bold Bet on Latin America

A Quarter of Records

Loomis AB delivered what it billed as a "strong second quarter" — and the numbers back it up. Revenue reached almost SEK 7.9 billion, with currency-adjusted growth above 9%, powered by organic expansion and recent acquisitions. Even more striking, the EBITA margin rose to 14.0%, the highest in the company's history, up over 1 percentage point year-over-year. Management attributed the margin expansion to restructuring and efficiency initiatives that have been quietly reshaping the cost base.

We increased our EBITA margin by more than 1 percentage point year-over-year to 14%. This represents the highest margin in our history.

The growth engine was unmistakable: precious metal transport and the international business line saw "very strong growth," driven by increased demand for cross-border transport of bullion. This is not a one-off surge. The company has been building out its footprint in Latin America, a region with high cash usage and attractive long-term prospects, and that strategy is now crystallizing into tangible acquisitions.

The Latin American Inflection Point

The most consequential development this quarter was the announcement of the planned acquisition of Hermes Transportes Blindados, described as "the most significant acquisition in Loomis' history." Hermes is the market leader in secure transportation and cash management in Peru, with roughly 50% market share and about 3,200 employees. The tender offer is expected to launch in August and close early in the fourth quarter. This builds on the earlier acquisition of Transportadora del Interior in Argentina, completed in early July, which doubles Loomis's presence there.

Management is candid about the strategic logic: "Together, these acquisitions strengthen our footprint in Latin America, a region characterized by high cash usage and attractive long-term growth opportunities." The company is not aiming to become the #1 or #2 player across the whole region — as CEO Aritz Larrea put it, "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." Instead, Loomis is building a selective, high-margin niche in a region where cash remains king.

The financial impact is modest but directionally meaningful. Latin America currently represents only 1.5% of revenue; after the Argentine deal that rises to 2%, and with Hermes it could reach 5–6%. That is still small, but the accretion to margins and the strategic optionality are significant. The company expects leverage to temporarily exceed its 2x net-debt-to-EBITDA target after closing, then fall back below within six months — a testament to its disciplined balance sheet.

Capital Returns and a Reinforced Rating

Shareholders were well rewarded this quarter: an ordinary dividend of SEK 15 per share plus an extraordinary dividend of SEK 5, totaling more than SEK 1.3 billion returned. Standard & Poor's reaffirmed the BBB credit rating with a stable outlook, underscoring the strength of the balance sheet. The company also highlighted a strong rolling 12-month cash conversion of 95%, despite higher working capital in the quarter.

This capital discipline is not new. In prior quarters, management consistently emphasized the same priorities. As Aritz reiterated on the Q4 2025 call, "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." The difference now is that the growth pipeline is being put to work through M&A, particularly in Latin America, which was previously just an ambition.

Why It Matters

Loomis is riding a powerful global theme: the surge in precious metals prices and the corresponding demand for secure logistics. That theme is visible across global markets — from gold producers to refiners — but Loomis is one of the few listed pure-plays on the transport and storage side. The company's international business line, which benefits from these trends, has been a key growth driver for several quarters, and this quarter was no exception.

The record margin is the result of a multi-year operational program, but the strategic pivot to Latin America is genuinely new. The Hermes acquisition is a company-unique movement that few competitors can replicate, given the local market structure. This is a deliberate bet on a region where cash usage is structurally higher than in Western Europe or the U.S., providing a hedge against the secular decline of cash in developed markets.

Management also reaffirmed its 12–14% EBITA margin target for the strategic period, and expects to remain in the upper half. Given the current trajectory, that guidance looks conservative. The fuel price indexation has protected margins, and the efficiency gains are ongoing. As CEO Aritz noted, "We expect those to continue during the rest of the year."

In a quarter where many industrials are struggling with margin compression, Loomis stands out. The combination of record profitability, a clear strategic roadmap, and a transformative acquisition sets it apart. The next few quarters will be telling: if the Hermes integration goes smoothly and the Latin American growth story gains traction, Loomis could be at the start of a multi-year re-rating.