ISS (ISS) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 organic growth reached 4.9%, mainly driven by price increases, volume growth, and project work, with commercial momentum improving and strategy execution on track.

• Operating margin and free cash flow were in line with expectations, supported by price increases to manage wage and cost inflation.

• 21 contract announcements year-to-date, including 9 new wins, 9 expansions, and 2 reductions; retention rate improved to 94% in Q3.

• Strategic initiatives progressed, including acquisitions in Austria (pending) and Spain (completed), and continued focus on customer-centric growth and efficiency.

• Credit rating upgraded by Moody's to Baa2 stable.

Financial highlights

• Q3 2025 revenue was DKK 20.7 billion, up 2.1% year-over-year; YTD 2025 revenue was DKK 62.3 billion, up 2.2%.

• Organic growth for Q3 was 4.9% and for YTD 2025 was 4.3%, mainly from price increases and volume growth.

• Retention rate improved to 94%, up from 93% in H1 2025.

• DKK 2bn share buyback completed and DKK 0.5bn paid in dividends.

• Total payout yield at 10%.

Outlook and guidance

• FY 2025 organic growth outlook narrowed to 4–5% (from 4–6%), with margin and cash flow outlook unchanged; operating margin expected above 5%.

• Free cash flow for 2025 expected above DKK 2.4 billion, with underlying FCF expected above DKK 2.6bn.

• Acquisitions and divestments expected to add about 1 percentage point to 2025 revenue growth; currency expected to have a negative 3 percentage point impact.