ISS (ISS) Q1 2026 TU earnings summary

Executive summary

• Achieved 7.4% organic growth in Q1 2026, up from 4.3% in Q1 2025, reflecting robust business health, contract wins, volume growth, and price increases.

• Commercial momentum continued with seven contract announcements, two new contracts each exceeding DKK 100 million in annual revenue, and record employee survey participation.

• Strategic buy-out of Actera's minority stake in ISS Türkiye, increasing ownership to 90% and reducing complexity.

• Acquired Cater Plus Services in New Zealand and divested two minor non-core businesses.

• Retention rate maintained at 94% (LTM) in Q1 2026, with 2026 expiries at a historic low of 1%.

Financial highlights

• Q1 2026 revenue was DKK 21.9 billion, a 4.8% increase year-over-year, with organic growth at 7.4%.

• Acquisitions/divestments contributed 0.8% to growth, while currency effects reduced growth by 3.4%.

• Margin and free cash flow developed in line with expectations.

• Projects and above-base work accounted for 16% of group revenue, contributing 1.5 percentage points to organic growth.

• Regional organic growth: Northern Europe 7%, Central & Southern Europe 10%, Asia & Pacific 6%, Americas -2%.

Outlook and guidance

• 2026 outlook confirmed: organic growth above 5%, operating margin above 5%, and underlying free cash flow above DKK 2.7 billion.

• Reported free cash flow expected above DKK 2.5 billion due to prepayments and early receivables.

• Acquisitions/divestments expected to add 0.5 percentage points to revenue growth in 2026; currency expected to reduce growth by 1.5 percentage points.

• Free cash flow for 2026 could exceed DKK 2.7 billion if DTAG payments are received.