ISS (ISS) CMD 2026 summary

Strategic direction and market outlook

• Focused on accelerating quality growth and long-term shareholder value through a simplified, customer-centric strategy, leveraging a self-delivery model and technology.

• Operating in a large, growing outsourced facility management market, with less than 1% market share in North America and significant headroom for expansion, especially in prioritized segments.

• Post-COVID, customer focus has shifted to value, experience, and sustainability, with increased investment in office environments and proactive customer engagement driving higher win rates.

• AI and technology are seen as operational enablers and commercial opportunities, enhancing labor optimization, productivity, and customer outcomes.

• No plans to enter new geographies or divest current markets; focus remains on deepening presence and capabilities in existing 57 countries.

Operational model and competitive advantages

• Self-delivery model enables control over user experience, cost leadership, compliance, and social sustainability, differentiating from competitors reliant on subcontractors.

• Workforce management and operational efficiency are key drivers, with global productivity benchmarks, AI-powered tools, and ~28 million hours saved from 2023-2026 YTD.

• Significant progress in resolving past operational hotspots, reducing executive management layers, and instilling a high-performance, transparent culture.

• Enhanced governance and daily cash flow tracking prevent operational risks and ensure financial discipline.

• Technology investments are tightly linked to strategic priorities, with cybersecurity now a competitive advantage and global finance platform delivering cost efficiencies.

Financial guidance and capital allocation

• New mid-term targets for 2026–2028: average annual organic growth above 5%, operating margin rising to 5.5–6.0% by 2028, and cash conversion above 60%.

• Margin expansion driven by operating leverage, workforce management, and investments in technology and efficiency.

• Capital allocation policy prioritizes investment-grade credit rating, leverage at 2.0x–2.5x, dividends at 20–40% of net adjusted profit, and disciplined bolt-on M&A.

• Excess capital expected to be returned to shareholders via share buybacks in 2027 and 2028, with 7.6bn DKK buyback and 1.5bn DKK dividend since 2024.

• M&A remains selective, focused on strategic fit, proven management, and synergy realization, with no transformational deals planned.