ISS (ISS) Q4 2025 earnings summary

Executive summary

• Delivered solid progress on all strategic priorities in 2025, with financial results in line with expectations and increased commercial momentum.

• 25 contract announcements in 2025, including 10 new wins and 12 expansions, supporting commercial momentum into 2026.

• Strategic focus sharpened on customer experience, sustainability, and efficiency, supported by a new commercial operating model and global initiatives.

• Two bolt-on acquisitions in Spain and Austria enhanced local presence and are delivering synergies.

• Retention rate improved to 94%, with ongoing efforts to further increase customer retention and improved contract maturity profile.

Financial highlights

• EPS grew by 9% year-over-year, with top-line growth exceeding DKK 10 billion over three years.

• Organic growth for FY 2025 was 4.3%, with an operating margin above 5% and free cash flow of DKK 2.7bn.

• Regional performance: Northern Europe FY organic growth 2.8%, Central & Southern Europe 10.2%, Asia & Pacific 7.1%, Americas -13.5%.

• Margin for FY 2025: Northern Europe 6.0%, Central & Southern Europe 6.7%, Asia & Pacific 7.2%, Americas 3.9%.

• Free cash flow quality improved, with DKK 2.7bn generated in 2025.

Outlook and guidance

• Guiding for above 5% organic growth in 2026, with less reliance on pricing and more from volume and net new wins.

• Operating margin expected to remain above 5% in 2026.

• Underlying cash conversion expected above 60%, with free cash flow guidance above DKK 2.5 billion (excluding Deutsche Telekom payment).

• Including expected Deutsche Telekom payment, free cash flow could exceed DKK 3.1 billion.

• Total shareholder return in 2026 expected at DKK 3.1bn, with a proposed dividend of DKK 3.2/share and a new share buyback of DKK 2.5bn.