Denmark's ISS Q1 organic growth rises 7.4% on contract wins

Iss A/S

05/05/2026 06:32

Corrects Q1 revenue to DKK 21.94 bln from DKK 100 mln in Key Details table, and headline to say co reports Q1 organic growth of 7.4%

Overview

Denmark workplace and facility services provider's Q1 organic growth was 7.4%, driven by contract wins

Company secured two new contracts above DKK 100 mln annually and extended six key accounts

ISS initiated DKK 2.5 bln share buyback; 2026 outlook for growth and margin unchanged

Outlook

ISS maintains 2026 outlook for organic growth above 5%

Company sees 2026 operating margin above 5%

ISS expects 2026 free cash flow above DKK 2.5 bln

Result Drivers

CONTRACT WINS AND VOLUME GROWTH - Co said Q1 organic growth was mainly supported by contract wins and increased volumes with existing customers secured in late 2025

PRICE INCREASES AND PROJECTS - Additional growth came from price increases and above-base project work, according to the company

CUSTOMER RETENTION AND CONTRACT EXTENSIONS - High retention rate of 94% and extension of six large key account contracts, three with significant scope expansions

Company press release: ID:nGNE2S7V0T

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
DKK 21.94 bln
Q1 Organic Growth
7.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for ISS A/S is DKK267.50, about 11.9% above its May 4 closing price of DKK239.00

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 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.)