Financial Growth Highlights from ISS Interim Report
Company Announcement
Copenhagen, August 2025 — ISS is pleased to present its interim report, showcasing continued financial resilience and strategic advancements.
Solid Financial Performance
In the second quarter of the year, ISS observed an organic growth of 3.8%, a slight decline from the previous year's 5.8%. However, for the first half of the year, we achieved a growth rate of 4.1%, down from 5.9% during the same period last year. This growth is primarily driven by price increases and various project expansions.
Moreover, our operating margin has improved, reaching 4.2% in the first half of 2025, a notable increase from 4.0% in the previous year. This improvement reflects ongoing operational enhancements across our organization.
Free cash flow also showed promising results, improving to DKK (0.5) billion, a strong recovery from DKK (1.1) billion noted in the same period last year. This positive shift is attributed to heightened operating profits and better management of working capital.
Key Business Updates
Contract Wins and Strategy Execution
ISS has successfully secured six significant new contracts each generating annual revenue surpassing DKK 100 million, in addition to multiple smaller contracts. The company has also extended several existing contracts with considerable scope expansions, reflecting our growing client trust.
The execution of our strategic initiatives is progressing well, particularly in enhancing our commercial model, refining workforce management, and advancing our finance shared service center. These efforts are crucial to our commitment to improving operational efficiency.
Future Outlook and Capital Distribution
Enhanced Financing and Share Buyback Program
This May, ISS launched a Euro-Commercial Paper (ECP) program aimed at facilitating prompt and effective short-term financing, establishing a maximum principal value of EUR 900 million. We are committed to maintaining robust liquidity and financial agility.
Recently, we completed the first tranche of our share buyback program worth DKK 1,250 million, and in alignment with our capital allocation policy, we have increased the second tranche by DKK 500 million, bringing the total buyback program to DKK 3.0 billion.
Our outlook for 2025 remains positive with expectations for organic growth between 4% and 6%, an operating margin exceeding 5%, and projected free cash flow above DKK 2.4 billion.
CEO Insights on Progress
Kasper Fangel, Group CEO of ISS, noted, "Our focus over the past quarter has been unwavering as we execute our strategic priorities. We are committed to driving customer-focused growth and enhancing operational efficiency. The robust performance displayed in our operating margins and continuous contract wins confirm our direction. The increase in our share buyback reflects our strong capital position and commitment to our shareholders. We are on the right path toward sustained long-term success.”
Contact Information
For investor enquiries
Michael Vitfell-Rasmussen, Head of Group Investor Relations, +45 53 53 87 25
Anne Sophie Riis, Senior Investor Relations Manager, +45 30 52 94 68
For media enquiries
Charlotte Holm, Head of External Communication, +45 41 76 19 89
ISS is recognized as a premier global provider of workplace and facility service solutions. Our commitment lies in enhancing the well-being of individuals, minimizing environmental impact, and ensuring property maintenance. With over 325,000 dedicated employees worldwide, we proudly drive engagement and excellence in service across various sectors, including offices, factories, and hospitals. Last year, our group revenue reached DKK 83.7 billion.
Frequently Asked Questions
What financial results did ISS report for H1 2025?
ISS reported organic growth of 4.1% and improved operating margin of 4.2%, indicating positive financial momentum.
How has ISS expanded its contract portfolio recently?
ISS secured six significant contracts with annual revenues above DKK 100 million, alongside additional smaller contracts.
What are ISS’s expectations for 2025?
The outlook for 2025 includes an organic growth target of 4-6% and free cash flow projected above DKK 2.4 billion.
What strategic initiatives are being executed by ISS?
ISS has been focusing on enhancing its commercial model, workforce management, and finance shared service centers to improve operational efficiency.
What is ISS committed to in terms of capital distribution?
ISS has increased its share buyback program to DKK 3.0 billion, affirming its commitment to returning value to shareholders.
