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 from strategic investments and sustainable growth focus.

• Q4 2025 delivered strong free cash flow and improved underlying growth quality, with robust performance across all countries.

• Announced 25 contracts in 2025, including 10 new wins and 12 expansions, supporting commercial momentum into 2026 and reducing reliance on pricing for revenue growth.

• Launched the next phase of strategy in December 2024, focusing on customer experience, sustainability, and efficiency, supported by eight global initiatives.

• Completed two bolt-on acquisitions in Spain and Austria, already delivering synergies and value.

Financial highlights

• EPS grew by 9% in 2025, 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%.

• Retention rate improved to 94% from 93% in 2024, with improved contract maturity profile and fewer expiries in 2026.

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, with focus on absolute EBITDA growth and high cash conversion (above 60%).

• Free cash flow guidance for 2026 is above DKK 2.5 billion (excluding Deutsche Telekom payment), and above DKK 3.1 billion including expected payment.

• 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.