ISS (ISS) Q2 2026 earnings summary

Executive summary

• Achieved strong H1 2026 results with organic growth of up to 8.9% in Q2 and 8.2% in H1, improved operating margin to 4.6%, and robust free cash flow, driven by operational improvements, commercial momentum, and a key Deutsche Telekom settlement.

• Retention rate increased to 95%, with 13 contract announcements and several large contract wins and extensions, supporting sustainable revenue growth.

• Deutsche Telekom contract extended to 2035 with improved terms, including a one-off payment and annual profitability uplift.

• Integration of Tomagruppen/Toma progressing as planned, strengthening the Nordic region.

• Strategic acquisitions in Norway, Denmark, New Zealand, and increased ownership in Türkiye executed.

Financial highlights

• Revenue for H1 2026 reached DKK 44.7 billion, up 7.4% year-over-year, with organic growth up to 8.9% in Q2.

• Operating margin for H1 2026 was 4.6%, up from 4.2% in H1 2025, benefiting from DTAG settlement and underlying improvements.

• Free cash flow improved to DKK 600 million (or DKK 568 million), including a one-time DKK 600 million payment from Deutsche Telekom.

• Earnings per share rose to DKK 7.5, and net profit increased to DKK 1,192 million.

• Shareholder payouts for 2026 total DKK 3.6 billion via DKK 500 million dividend and DKK 3.1 billion share buyback.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: organic growth above 6%, operating margin around 5.25%, and free cash flow above DKK 3.1 billion.

• Growth expected from price increases, volume growth, contract expansions, and operational improvements.

• Retention rate expected to remain at 95% for the remainder of the year.

• Financial leverage target maintained at 2.0–2.5x net debt/EBITDA.