SSP Group (SSPG) H2 2025 earnings summary

Executive summary

• FY 2025 saw 8% revenue growth to £3.6bn, 13% increase in underlying operating profit, and 25% EPS growth at constant currency, with margin up 30bps and free cash flow pre-dividend of £80m.

• A £100m share buyback was initiated, capital expenditure tightened, and return on capital employed rose 100bps to 18.7%.

• Overhead reduction of £30m was actioned, with 300 roles removed, though Continental Europe underperformed; new leadership and plans are in place to improve margins from 2.1% in 2025 to at least 3% in 2026.

• FY 2026 has started with 4% like-for-like sales growth in the first two months, supporting a nudge up in EPS guidance.

Financial highlights

• Revenue rose to £3,639m (+8%), underlying operating profit reached £223m (+13%), and EPS to 11.9p (+25%) year-over-year.

• Free cash flow before dividends was £80m, a £280m improvement year-over-year.

• Net debt/EBITDA reduced to 1.6x, enabling the share buyback program.

• Dividend increased 20% to 4.2p per share.

• Non-underlying items totaled £183m, including £117m impairments (mainly France and Germany), £33m IT accounting changes, £12m restructuring, and £14m site exit costs.

Outlook and guidance

• FY 2026 guidance: EPS at the upper end of 12.9–13.9p (excluding buyback impact), free cash flow >£100m, and ROCE building towards 20%.

• Capex for FY 2026 capped at below £200m, with focus on organic growth and no current M&A plans.

• Board reviewing Continental European rail business and TFS free-float options.