ISS (ISS) Q4 2025 earnings summary

Executive summary

• 2025 marked a strong year with strategic plans advancing, robust commercial momentum, and benefits materializing in business performance, supported by 25 contract announcements.

• Q4 2025 delivered strong free cash flow and improved underlying growth quality, with performance fully in line with expectations.

• Sequential improvement in like-for-like growth by 2 percentage points.

Financial highlights

• Achieved 4.3% organic growth for FY 2025 and 4.1% in Q4, with operating margin above 5% and free cash flow of DKK 2.7bn.

• Margin guidance was delivered, including commercial investments in the Americas.

• Free cash flow quality improved, with DKK 2.7bn generated in 2025, slightly above guidance, and DKK 2.5bn reported after adjusting for prepayments.

• EPS grew by just over 9% year-over-year.

• Total shareholder return in 2026 projected at DKK 3.1bn.

Outlook and guidance

• FY 2026 guidance: organic growth above 5%, margin above 5%, and underlying free cash flow above DKK 2.7bn (DKK 2.5bn reported).

• Growth quality expected to improve, with higher contribution from net new wins and less from price increases.

• Fewer and smaller contract renewals in 2026, with only 4% of contracts up for renewal.

• Free cash flow outlook for 2026 exceeds DKK 2.5bn, with potential upside from DTAG timing effects.

• Proposed dividend of DKK 3.2 per share and a new share buyback of DKK 2.5bn in 2026.