ISS (ISS) Q1 2026 TU earnings summary

Executive summary

• Achieved 7.4% organic growth in Q1 2026, with revenue up DKK 1 billion year-over-year and strong like-for-like performance, driven by contract wins, volume growth, and price increases.

• High customer retention rate of 94% maintained, with six out of seven new contract announcements positive and several large key account extensions.

• Strategic acquisition of Actera's remaining stake in Türkiye, increasing ownership to 90%, enhancing value creation, control, and market position.

• Q1 financial performance met or exceeded expectations across all key indicators, with strong commercial execution and positive contract maturity profile.

• Ongoing arbitration and settlement discussions with Deutsche Telekom, with resolution expected in H1 2026.

Financial highlights

• Organic growth of 7.4% in Q1 2026, with balanced contributions from pricing, volume, net new, and above-base revenue.

• Like-for-like growth at 2% for the second consecutive quarter.

• Above-base/project work contributed 1.5 percentage points to organic growth, mainly from Europe and DWP.

• All regions except Americas delivered positive organic growth; Central and Southern Europe led with 10%, Americas declined by 2%.

• Dividend of DKK 500 million paid and DKK 500 million in share buybacks executed, with an 8% payout yield.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: organic growth above 5%, operating margin above 5%, and free cash flow above DKK 2.5 billion.

• Free cash flow could exceed DKK 3.1 billion if Deutsche Telekom payments are received.

• Pricing remains the main growth driver, especially from Türkiye, but a more balanced contribution from other levers is expected.

• No current plans to upgrade guidance due to early stage in the year and limited visibility on above-base work.

• Acquisitions and divestments expected to add 0.5 percentage points to revenue growth in 2026; currency expected to have a negative 1.5 percentage point impact.