IWG beats FY sales estimate, hikes stock buyback, backs FY forecast

International Workplace

03/03/2026 07:09

Overview

Hybrid workspace platform's preliminary FY 2025 revenue grew 4%, beating analyst expectations

Adjusted EBITDA for FY 2025 grew 6%, reaching $531 mln

Company increased 2026 share buyback program by $50 mln to $100 mln

Outlook

IWG expects 2026 adjusted EBITDA between $585 mln and $625 mln

Company plans $100 mln share buyback program for 2026

IWG aims for medium-term EBITDA of at least $1 bln

Result Drivers

RECORD NETWORK EXPANSION - IWG achieved highest-ever network growth with 1,132 new centre signings and 782 openings

MANAGED & FRANCHISED GROWTH - 28% system-wide revenue growth driven by record openings and fee income increase

COMPANY-OWNED PROFITABILITY - Improved margins through increased occupancy and pricing strategies

Company press release: ID:nRSC0253Va

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY System-wide Revenue
Beat
$4.45 bln
$3.79 bln (7 Analysts)
FY Operating Profit
Miss
$143 mln
$217.02 mln (8 Analysts)
FY Net Debt
$715 mln
FY Systemwide Revenue Growth
4.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the real estate services peer group is "buy"

Wall Street's median 12-month price target for International Workplace Group PLC is GBp275.00, about 29.1% above its March 2 closing price of GBp213.00

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)