Johnson Service Group (JSG) H1 2026 earnings summary

Executive summary

• Group revenue for H1 2026 was £258 million, up 0.2% year-over-year, with organic revenue down 0.7%.

• Workwear division grew 2.6% organically to £74 million with a 94% customer retention rate; HORECA revenue declined 2% organically and 0.8% in total.

• Adjusted operating profit rose 3.8% to £29.8 million, with margin up 50 bps to 11.6%.

• EPS increased 8.7% to 5p; interim dividend up 12.5% to 1.8p per share.

• £55 million share buyback program is 50% complete, with total returns to shareholders since 2022 reaching £120 million.

Financial highlights

• Adjusted operating margin improved by 50 bps to 11.6% in H1 2026.

• Adjusted EBITDA margin improved to 30.2% (up 90bps year-over-year).

• Net debt at half-year end was £188.6 million; leverage at 1.1x, the lower end of the target range.

• Total interest expense rose to £4.5 million due to higher borrowings for buybacks and acquisitions.

• Energy costs reduced to 7% of revenue from 7.8% in H1 2025.

Outlook and guidance

• On track to achieve adjusted operating margin of at least 14% in 2026.

• Workwear expected to maintain strong performance; HORECA to face continued market constraints.

• Labor costs as a percentage of revenue expected to moderate in H2 and trend toward 2025 levels.

• Majority of current buyback program to be completed by year-end; leverage to remain at lower end of target range.