ISS A/S Q2 2026 Earnings Recap

Shares rose 5.6% following ISS’s H1 2026 results, driven by strong organic growth, improved margins, and a positive settlement and contract extension with Deutsche Telekom that enhanced business visibility.

Key Takeaways

• Delivered organic growth of 8.9% in Q2, with stable like-for-like growth of 2% for the third quarter running.
• Operating margin improved to 4.6%, benefiting from operational improvements and a better run rate on the Deutsche Telekom contract.
• Free cash flow reached DKK 600 million, helped by improved operations, seasonal working capital effects, and a one-time DKK 600 million payment from Deutsche Telekom.
• Retention rate increased to 95%, showing progress in customer relationship quality.
• Signed 13 contract changes year-to-date, with 10 positive, supporting commercial discipline and revenue quality.