Denmark's ISS Q2 organic growth rises on new contract wins; increases buyback
Denmark's ISS Q2 organic growth rises on new contract wins; increases buyback
Overview
Denmark facility services firm's Q2 organic growth rose to 8.9% from 3.8% last year
Operating margin before other items improved to 4.6% in H1 2026 from 4.2%
Company increased share buyback programme to DKK 3.1 bln after completing first tranche
Outlook
ISS sees 2026 organic growth above 6%
Company expects 2026 operating margin around 5.25%
ISS forecasts 2026 free cash flow above DKK 3.1 bln
Result Drivers
CONTRACT WINS AND VOLUME GROWTH - Co said Q2 organic growth was mainly driven by new contracts, increased volumes with existing customers, and above-base project work
DTAG SETTLEMENT IMPACT - Settlement and extended partnership with Deutsche Telekom AG led to a one-off revenue adjustment and ongoing contractual margin improvement
STRATEGIC CONTRACT EXTENSIONS - Co said focus on renewing and expanding customer contracts secured a 95% retention rate and extension of 14 large key account contracts, with six including significant scope expansions
Company press release: ID:nGNE9XfqTl
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Organic Growth |
| 8.90% |
|
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 DKK315.00, about 15.4% above its August 10 closing price of DKK273.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
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(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.)