Sodexo (SW) Q3 2025 TU earnings summary

Executive summary

• Q3 revenues reached €6.1 billion, up 0.8% year-over-year, with organic growth of 3.0% in line with expectations.

• Growth was supported by contract ramp-ups, healthy pricing, and business momentum, especially in core markets, but North America education underperformed due to contract losses.

• Performance reflects continued softness in North America, offset by stronger trends in Europe and Rest of World.

• Commercial momentum remains strong, with a robust pipeline and successful contract mobilizations in key geographies.

Financial highlights

• Organic growth for the first nine months stands at 3.4%, with Q3 revenues of €6,121 million and a negative currency impact of -2.1%.

• Nine-month group revenue reached €18,596 million, up 2.3% year-over-year.

• Pricing contributed close to 3% of organic growth in Q3.

• Scope effects limited at -0.2% in Q3 and expected to be around -0.5% for the full year.

• Other income and expenses expected at around €160 million, reflecting increased transformation and restructuring programs.

Outlook and guidance

• Full-year organic growth and underlying operating margin expected at the lower end of the 3–4% and 10–20 bps improvement ranges, respectively.

• Q4 organic growth will be negatively impacted by a 120 bps base effect from last year’s Paris Olympics.

• Fiscal 2026 guidance will be provided with full-year results in October; net contribution from FY25 expected to be modest.

• Margin ambition remains positive over time, with focus on procurement, labor management, and operational streamlining.