Loomis (OM:LOOMIS) Delivers 17.2% Annual Earnings Growth, Reinforcing Profit Momentum Narrative

Loomis (OM:LOOMIS) reported robust performance this year, with annual earnings growth accelerating to 17.2% and profit margins improving from 5% to 5.7%. Over the past five years, the company has averaged a 16.1% annual earnings growth rate, and future earnings are forecast to rise at 14.92% per year, outpacing the Swedish market’s expected 12.9%. For investors, Loomis’s consistent profit momentum, margin gains, and value-oriented valuation stand out. Dividend sustainability remains something to watch as results move forward.

See our full analysis for Loomis.

The next step is to weigh up these results against the prevailing narratives in the market. Some expectations could be reinforced, while others might get a reality check.

See what the community is saying about LoomisOM:LOOMIS Earnings & Revenue History as at Nov 2025

Margin Expansion Set to Accelerate

Analysts expect Loomis' profit margins to rise from the current 5.7% to 9.4% within three years. This would be a substantial margin boost for the sector. The analysts' consensus view strongly supports the idea that Loomis is becoming more efficient and resilient by:

Expanding into tech-enabled and high-security logistics services, which offer higher recurring margins than traditional cash handling. Pursuing operational streamlining and acquisitions that reinforce steady growth despite ongoing margin pressures from structural changes in cash usage. Bulls are likely to watch closely for signs that new automation and restructuring investments are accelerating margin gains, even as revenue growth moderates. Fresh momentum in margins is directly connected to analysts' projected earnings quality, setting the stage for ongoing profit outperformance if management delivers as planned.
📊 Read the full Loomis Consensus Narrative.

Revenue Trailing Market, But Diversification Supports Outlook

Loomis' forecast annual revenue growth of 3.5% is below the Swedish market average of 3.8%, suggesting competitive headwinds even as the core business remains stable. The analysts' consensus view acknowledges this slower revenue climb, but points out:

Strategic expansion into pharma logistics and cross-border valuables is driving diversification, which helps insulate Loomis from declines in cash-in-transit volumes. Technology investments are creating new upsell opportunities, supporting recurring revenue sources that should help buffer long-term top-line risks.

Discount to Peers, Huge DCF Upside

Loomis trades at a 14.9x price-to-earnings ratio, well below the peer average of 19.7x, and the share price of SEK384 represents a significant 70% discount to its DCF fair value estimate of SEK1,285.80. The analysts' consensus view balances this discount by noting:

The company is valued more attractively than direct peers, but its slightly higher PE versus industry (14.4x) indicates that investors see its growth runway and margin turnaround potential as worth a modest premium. A 13.2% upside to the current analyst target (SEK472.67) leaves room for near-term re-rating, especially if Loomis executes on guidance and earnings quality remains high.

Story Continues

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Loomis on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Loomis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Loomis’s revenue growth is now trailing the wider market. This raises concerns about slower top-line momentum, despite strong profitability and margin expansion.

If you want to focus on businesses that reliably deliver consistent earnings and revenue, consider companies in our stable growth stocks screener (2103 results) that have proven they can sustain steady growth in any environment.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LOOMIS.ST.

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