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Compass Group (CPG) investor relations material
Compass Group Q1 2026 TU earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 7.3% organic revenue growth in Q1 2026, maintaining strong momentum after an exceptional Q4, with robust performances across all regions and sectors.
Net new business remained in the 4%-5% range for the fifth consecutive year, with client retention above 96%.
New business wins rose 10% year-over-year to $4 billion, nearly half from first-time outsourcing and the B&I sector.
Acquisition of Vermaat for $1.7 billion completed in December, enhancing European capabilities, with integration underway.
AI adoption and exposure to the tech sector are driving growth, especially in B&I.
Financial highlights
Underlying operating profit growth for 2026 expected at around 10% on a constant currency basis.
Organic revenue growth guidance for 2026 is around 7%, with 2% profit growth from M&A.
Annualised new business wins reached $4bn, up 10% year-over-year.
Total Q1 M&A investment was $1.9bn, including Vermaat.
Margin progress anticipated, supported by synergies from acquisitions and operating leverage.
Outlook and guidance
2026 guidance remains positive and unchanged, with expectations for continued organic growth and margin expansion.
Modest acceleration in net new business expected in the second half of the year, supported by record new business signings.
Margin expansion is viewed as a floor for 2026, with potential for further improvement at the half-year update.
Strategic integration of Vermaat underway, aiming to replicate North America M&A success in Europe.
Inflation is expected to moderate further into Q3 and Q4.
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Frequently asked questions
British Food Service Group
Compass Group is a British food service and support services company with multinational operations. The company provides catering services to a number of sectors including healthcare, education, business, sports, and military. Its services extend beyond food catering to include facility management and other support services, primarily aimed at the educational sector. The company is headquartered in Chertsey, England, and its shares are listed on the LSE.
Aiding the War Effort
The origins of Compass Group can be traced back to 1941 in the United Kingdom, under the name Factory Canteens Ltd. This initial venture was focused on providing catering services to factories during the war. When peace was achieved in Europe, the company continued to provide catering services across the country. In the following decades, it pursued a strategy of growth through acquisitions, extending its reach across various markets globally. The early 2000s saw Compass Group undergoing significant corporate restructuring. This included divesting non-core businesses to focus more intensely on catering and related services.
Food services
Compass Group provides food services across various sectors, providing all-encompassing solutions for clients looking to feed larger groups of people. The company delivers daily meal solutions for office workers and supplies schools and universities with catering. Other client groups include event organizers, hospitals and healthcare facilities, correctional facilities, and similar institutions. Some companies operating in the same sector are Sodexo and Aramark.
Other Services
Besides its primary focus on food services and catering, Compass Group offers a range of additional services that complement its core operations. These include facilities management, support services in the form of receptionists and other key operational roles for businesses, vending services, and event planning. All of these services can be combined with its catering to offer a comprehensive solution for its clients.
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