Compass Group (CPG) H1 2025 earnings summary

Executive summary

• Achieved double-digit underlying operating profit growth in H1 2025, with 8.5% organic revenue growth and client retention above 96%.

• Net new business growth at 4.4%, within the 4%-5% target for the fourth consecutive year.

• Diverse sector and geographic portfolio, with significant opportunities in core markets and through M&A.

• Ongoing investments in growth, including $1.7bn in capex and M&A, and continued technology enhancements.

• Completed portfolio reshaping with exits from four countries and continued focus on sector expansion.

Financial highlights

• Underlying revenue rose 8.5% to $22.6bn; underlying operating profit up 11.6% to $1,627m; statutory operating profit up 3.9% to $1,476m.

• Basic EPS increased 10.6% to 64.5c; interim dividend per share up 9.2% to 22.66c.

• Free cash flow improved to $743m, up 5.5% year-over-year.

• Net capital expenditure was $671m, representing 3.0% of underlying revenue.

• Net debt increased to $6.6bn, with leverage at 1.5x EBITDA, within target range.

Outlook and guidance

• FY25 guidance unchanged: high single-digit underlying operating profit growth, organic revenue growth above 7.5%, and ongoing margin improvement.

• Margin expansion expected to continue, with profit growth ahead of revenue growth.

• Capex expected at ~3.5% of revenue; interest charge around $300m; effective tax rate at 25.5%.

• Working capital position expected to improve in H2 and be broadly flat for the full year.

• Longer-term confidence in sustaining mid- to high single-digit organic revenue growth.