ISS AS (STU:QJQ) Full Year 2025 Earnings Call Highlights: Strong Financial Performance Amidst …

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Fri, February 20, 2026 at 12:01 AM GMT+9 3 min read

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**EPS Growth:** 9% increase in 2025.

**Organic Growth:** 4.3% for the full year 2025; 4.1% in Q4 2025.

**Operating Margin:** Above 5% for 2025; 5.8% in H2 2025.

**Free Cash Flow:** DKK2.7 billion for 2025.

**Cash Conversion:** 64% for 2025.

**Share Buyback Program:** DKK2.5 billion announced.

**Retention Rate:** 94% for 2025.

**Regional Performance:** Positive organic growth in all regions except the Americas in Q4 2025.

**Acquisitions:** Two acquisitions in Spain and Austria, adding 0.8% to group revenue.

**Dividend:** Proposed dividend of 20% of net profit, equaling DKK3.2 per share.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

ISS AS (STU:QJQ) reported financial results in line with expectations, demonstrating stability and consistency.

The company announced 25 new contracts in 2025, with 22 being positive, laying a strong foundation for 2026.

ISS AS (STU:QJQ) expects organic growth of above 5% in 2026, driven by net new wins and volume growth.

A new share buyback program of DKK2.5 billion was announced, reflecting a commitment to shareholder value.

The company successfully completed two bolt-on acquisitions in Spain and Austria, enhancing local presence and delivering synergies.

Negative Points

The tragic incident at a customer site in Hong Kong in 2025 resulted in the loss of life, impacting the company emotionally and operationally.

Organic growth in 2025 was primarily driven by price increases, with net new wins negatively impacted by contract trimming and exits.

The Americas region faced headwinds from contract exits and restoration work, affecting overall performance.

The arbitration proceedings with Deutsche Telekom remain unresolved, creating uncertainty around potential financial outcomes.

Investments in the US market have yet to yield significant returns, impacting margins and requiring continued focus.

Q & A Highlights

Q: Can you elaborate on the organic growth guidance of above 5% for 2026? Is there an element of conservatism in this forecast? A: Kasper Fangel, CEO: We are confident in achieving above 5% organic growth this year. We expect pricing to be higher than historical levels but lower than in 2025. The underlying growth is positive, driven by existing customers and net new wins. While project volume is harder to predict, there is no indication of a structural decrease. We will update on progress quarterly.

Story Continues  

Q: Why aren’t we seeing more positive impact on margins despite margin-accretive acquisitions and investments? A: Kasper Fangel, CEO: We are investing in the Americas, which impacts margins. However, the rest of the business is improving. We have a new management team in the US, and the pipeline is building. We will provide more data on margin opportunities at our Capital Markets Day.

Q: Can you provide details on the shared service centers’ impact on margins and future investments? A: Mads Holm, CFO: The shared service center journey negatively impacted 2025 margins due to accelerated investments. For 2026, we expect a neutral impact as benefits start to materialize. We are also exploring expansion beyond Europe, which will be discussed further at our Capital Markets Day.

Q: Could you clarify the potential for increasing the share buyback program? A: Mads Holm, CFO: The DKK2.5 billion share buyback is a starting point. We maintain a flexible approach to capital distribution, considering leverage and cash generation. We have previously increased buybacks during the year and will evaluate the situation as it evolves.

Q: What is the status of the Deutsche Telekom arbitration and its potential impact on cash flow? A: Kasper Fangel, CEO: Discussions with Deutsche Telekom are ongoing alongside the arbitration process. We expect to receive the DKK600 million owed from past withholdings. Any settlement must be favorable to ISS and Deutsche Telekom, ensuring a positive commercial outcome.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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