Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
1 of 33
Interim report for 1 January – 30 June 2025
Continued robust financial development. Second tranche of the share buyback
programme increased by DKK 500 million to DKK 1,750 million
Highlights
Financial performance
• Organic growth was 3.8% in Q2 2025 (Q2 2024: 5.8%), and 4.1% in H1 2025 (H1 2024: 5.9%), mainly driven by
price increases and projects and above-base work, partially offset by net negative contract wins as previously
communicated.
•
Operating margin before other items (excl. IAS 29) improved to 4.2% in H1 2025 from 4.0% in H1 2024 as a
result of continued operational improvements across the Group.
• Free cash flow improved to DKK (0.5) billion in H1 2025 (H1 2024: DKK (1.1) billion) mainly due to increased
operating profit and improved changes in working capital.
Business update
• ISS secured six new large key account contracts, each with annual revenue above DKK 100 million, alongside
several smaller and mid-sized local IFS contracts. In addition, a number of existing contracts were extended,
several with significant scope expansions of above DKK 100 million.
• Strategy execution developed according to plan, where especially commercial model, workforce management
and finance shared service centre gained momentum.
• The final oral hearing in the arbitration proceedings with Deutsche Telekom took place in mid July. The parties
now await a ruling by the Tribunal.
Capital distribution and outlook
• On 27 May 2025, ISS established a Euro-Commercial Paper (ECP) programme to enable more efficient and
timely access to short-term financing. The programme has a maximum principal value of EUR 900 million.
• On 11 August 2025, ISS concluded the first DKK 1,250 million tranche of its 2025 share buyback programme.
The second tranche has been increased by DKK 500 million to DKK 1,750 million in accordance with our capital
allocation policy. The total programme will thereby amount to DKK 3.0 billion.
• The 2025 outlook is unchanged for all three financial KPIs; organic growth of 4 – 6%, operating margin above
5% and free cash flow above DKK 2.4 billion.
Kasper Fangel Group CEO, ISS A/S, says:
“Over the past quarter, we’ve maintained a steadfast focus on executing our strategic priorities - driving customer-
centric growth, improving efficiency, and becoming the world’s leading frontline employer. I’m pleased to see this
reflected in continued robust financial performance, including an improved operating margin. So far this year, we’ve
announced expansions and wins of 14 contracts, each with additional annual revenue of more than DKK 100 million.
Additionally, with our strong capital position, we’ve decided to increase our share buyback programme by DKK 500
million. We still have more to accomplish, but I’m pleased with the current focus and speed of execution across our
organisation. This collective drive is not only fuelling our momentum - it is laying the foundation for sustained success.”
Financial overview
Q 1 2025
Q 2
2025
H1 2025
H1
2024
DKK million (unless otherwise stated)
Revenue
20,930
20,683
41,613
40,681
Organic growth, %
4.3 3.8 4.1 5.9
Operating profit before other items
1,688 1,580
Operating profit before other items, excl. IAS 29
1,736 1,600
Operating margin (before other items), %
4.1 3.9
Operating margin (before other items), %, excl. IAS 29
4.2 4.0
Free cash flow
(542)
(1,095)
Free cash flow, excl. IAS 29
(558)
(1,100)
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
2 of 33
Key figures and financial ratios
Financials H 1 2025 H 1 2024
2024
R esults ( DKK million)
Revenue, excl. IAS 29
Revenue
Operating profit before other items, excl. IAS 29
Operating profit before other items
Operating
profit
EBITDA before other items
EBITDA
Pro forma adjusted EBITDA, LTM
Finance costs, net
Net profit from continuing operations
Net profit from discontinued operations
Net profit
Net profit (adjusted)
41,821
41,613
1,736
1,688
1,580
2,453
2,393
5,726
(296)
995
-
995
1,088
40,496 83,005
40,681 83,761
1,600 4,155
1,580 4,143
1,517 3,889
2,314 5,612
2,291 5,449
5,118 5,585
(288) (590)
940 2,641
(71) (52)
869 2,589
990 2,876
Cash flow ( DKK million)
Cash flow from operating activities
Acquisition of intangible assets, property and equipment, net
Free cash flow, excl. IAS 29
Free cash flow
135
(309)
(558)
(542)
(333) 3,727
(289) (619)
(1,100) 1,994
(1,095) 1,996
F inancial position ( DKK million)
Total assets
Goodwill
Additions to property and equipment, right-of-use assets
Equity
Net
debt
51,084
19,930
575
10,395
14,140
50,139 50,641
20,102 20,501
637 1,432
10,793 11,913
13,230 11,340
Shares ('000)
Shares issued
Treasury shares
Average shares (basic)
Average shares (diluted)
174,200
4,991
171,192
172,214
185,668 185,668
2,545 9,220
183,135 180,954
185,864 183,358
Ratios
F inancial ratios (%, unless otherwise stated)
Organic growth
Acquisitions/divestments, net
Currency adjustments
Total revenue growth
Operating margin, excl. IAS 29
Operating margin
Cash conversion
Equity ratio
Net debt/Pro forma adjusted EBITDA
4.1
0.9
(2.7)
2.3
4.2
4.1
(32.1)
20.3
2.5x
5.9 6.3
1.0 1.0
(0.8) (0.8)
6.1 6.5
4.0 5.0
3.9 4.9
(69.3) 48.2
21.5 23.5
2.6x 2.0x
Share rati os ( DKK)
Basic earnings per share (EPS)
Diluted EPS
Basic EPS (continuing operations)
Diluted EPS (continuing operations)
5.9
5.9
5.9
5.9
4.7 14.3
4.6 14.1
5.1 14.5
5.0 14.4
Non- f inancials
Soci al data
Full-time employees, %
Number of employees (end of period)
79
318,105
79
79
327,704 326,483
Definitions, see Annual Report 2024.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
3 of 33
Business update
Following the strategic review conducted in 2024, we
sharpened our focus from previously five strategic
OneISS priorities to three Global priorities and eight
global initiatives to be executed from 2025 and
onwards.
In the first six months of 2025, main focus has been
on establishing governance and management
oversight of the programme as well as initiating
execution of each global initiative. Overall, the
programme developed according to plan, with
commercial model, workforce management and
finance shared service centre initiatives gaining
most momentum. The finance shared services
centre is established in Gdansk, Poland, and focuses
on driving cost efficiencies in transactional services.
As such, the transition of transactional services from
primarily the UK, Denmark, Sweden, the Netherlands
and Finland continued in H1 2025 with several other
countries being in preparation phase to complete
migration before the end of 2025.
Operationally, the business developed as expected
in the first six months of 2025 as we continued to
successfully manage wage inflation by implementing
price increases with our customers in parallel with
improving productivity across local markets.
Mobilisation activities for contracts secured in 2024
also continued according to plan, most notably
related to the key account contract with DWP in the
UK.
Commercially we gained more momentum with
several wins in H1 2025, especially during Q2 2025,
see Commercial development on page 7.
Geopolitical uncertainties
In the first six months of 2025, macroeconomic and
geopolitical uncertainties remained high with
uncertainty from imposed tariffs and trade barriers,
especially from the US. Since ISS delivers services
locally, rather than exports goods, we are less
exposed to such global events. The escalating events
in the Middle East added further uncertainty. ISS has
no direct activities in the region, neither any
significant customers that are significantly exposed,
however we continue to monitor the development.
Deutsche Telekom
As previously disclosed, ISS and Deutsche Telekom
(DTAG) have certain contractual disagreements, and
in December 2022, ISS initiated the establishment of
an Arbitration Tribunal under the German Institute
of Arbitration (DIS) to decide on these
disagreements.
In the proceedings, ISS and DTAG have exchanged
claims against each other. ISS has claimed
remuneration for services performed. DTAG has
disputed the claims. The final oral hearing in the
arbitration proceedings took place in mid July 2025.
The parties now await a ruling by the Tribunal.
Share buyback programme
2024 programme
On 19 February 2025, ISS completed the share
buyback programme launched in 2024 as shares for
a total consideration of DKK 1.5 billion had been
repurchased.
2025 programme
On 11 August 2025, ISS completed the first tranche
of the DKK 2.5 billion share buyback programme as
7,409,554 of shares had been acquired for a total
consideration of DKK 1,250 million. The second
tranche of the programme commenced on 12
August 2025. In line with our capital allocation policy,
the second tranche has been increased by DKK 500
million taking the total value of the programme to
DKK 3.0 billion to complete 13 February 2026 at the
latest.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
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Group Performance
Q2 2025
Revenue
Group revenue in Q2 2025 was DKK 20.7 billion, an
increase of 0.4% compared with the same period last
year. Organic growth was 3.8% (Q2 2024: 5.8%),
acquisitions and divestments, net increased revenue
by 0.6%, while currency effects and the net impact
from hyperinflation restatement in Türkiye (IAS 29)
were negative with 2.7% and 1.3%, respectively.
Organic growth continued to be driven by price
increases implemented across the Group and
volume growth. Price increases contributed around
4.5%-points, of which around half came from
Türkiye.
Volume growth was driven by a combination of
increased activity levels at customer sites and
expansion of contracts with existing customers and
contributed around 0.5%-point to organic growth.
In the second quarter, the contribution from net new
contract wins was negative around 2%-points, as a
result of contracts lost in H1 2024 as well as certain
deliberate contract exits in 2024, especially in the
Americas region.
Revenue from projects and above-base work
accounted for 16% of Group revenue (Q2 2024: 15%)
and grew organically by 6% mainly as a result of
projects related to customers’ refurbishment
programmes and other smaller above-base work.
All regions, except Americas, contributed to the
positive organic growth. Central & Southern Europe
showed the highest organic growth, mainly due to
price increases in Türkiye. In Northern Europe the
organic growth was lower compared with the same
period last year mainly due to the annualisation
effect from Defra in the UK and the Danish Building
and Property Agency with go-live in Q2 2024. Asia &
Pacific was mainly supported by solid growth in
Australia and Singapore. In Americas, growth
continued to be negative mainly due to deliberate
contract exits and losses in prior year.
R evenue and growth
(DKKm)
Q2 2025 Q2 2024
Organic
growth
Acq./
div.
Currency &
other adj.
Revenue
Growth
Northern Europe 8,002 7,848 1% 0% 1% 2%
Central & Southern Europe 7,144
6,657 9% 2% (4)% 7%
Asia & Pacific 3,586 3,528 8% - (6)% 2%
Americas 1,917
2,293 (10)% - (6)%
(16)%
Other countries 205 181
15% - (2)% 13%
Corporate / eliminations
(18)
(14)
- - - -
Group, excl. IAS 29
20,836 20,493
3.8% 0.6%
(2.7)%
1.7%
Group
1)
20,683 20,591
3.8% 0.6%
(4.0)%
0.4%
1)
The net impact from hyperinflation restatement in Türkiye (IAS 29) was (1.3)% on Group-level, that has been included in Currency & other adj.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
5 of 33
H1 2025
Revenue
Group revenue in the first six months of 2025 was
DKK 41.6 billion, an increase of 2.3% compared with
the same period last year. Organic growth was 4.1%,
acquisitions and divestments, net were positive by
0.9%, whereas currency effects and the net impact
from hyperinflation restatement in Türkiye (IAS 29)
were negative with 1.7% and 1.0%, respectively.
Organic growth was 4.1% in the first half of 2025 (H1
2024: 5.9%), primarily driven by price increases and
projects and above-base work.
ISS continued to implement price increases across
the Group in line with contractual agreements to
mitigate the effects of wage increases and general
cost inflation. This had a positive effect on organic
growth of around 4.5%-points of which around half
related to Türkiye.
Volume growth contributed around 0.5%-point to
organic growth primarily driven by increased activity
levels at customer sites, mainly in Northern Europe
and Asia & Pacific.
Net contract wins were negative by around 2%-
points, primarily driven by contracts lost as well as
certain deliberate contract exits during 2024,
especially in Americas. This was partly offset by the
annualisation effect of the startup of Defra in the UK
and the Danish Building and Property Agency in
Denmark.
Projects and above-base work accounted for 16% of
Group revenue (H1 2024: 15%) and grew organically
by 7% in H1 2025. Growth was mainly related to
customers’ refurbishment programmes and other
above-base work, especially in Central & Southern
Europe and Asia & Pacific.
Key account customers accounted for 70% of Group
revenue (H1 2024: 71%).
All regions, except Americas, contributed to the
positive organic growth. Central & Southern Europe
reported the highest organic growth, mainly due to
price increases in Türkiye and projects and above-
base work. Asia & Pacific was mainly supported by
solid growth in Australia and Singapore. In Northern
Europe growth was positively impacted by contract
startups in 2024, mainly Defra in the UK and the
Danish Building and Property Agency in Denmark. In
Americas, growth was negative mainly due to
deliberate contract exits during H1 2024.
R evenue and growth
(DKKm)
H1 2025 H1 2024
Organic
growth
Acq./
div.
Currency &
other adj.
Revenue
Growth
Northern Europe 15,852
15,376
2% 0% 1% 3%
Central & Southern Europe 14,377
13,212
9% 3% (3)% 9%
Asia & Pacific 7,267 7,049 6% - (3)% 3%
Americas 3,973 4,535 (9)% - (3)%
(12)%
Other countries 392 349 13% - (1)%
12%
Corporate / eliminations (40)
(25)
- - -
Group, excl. IAS 29
41,821 40,496
4.1% 0.9%
(1.7)%
3.3%
Group
1)
41,613 40,681
4.1% 0.9%
(2.7)%
2.3%
1)
The net impact from hyperinflation restatement in Türkiye (IAS 29) was (1.0)% on Group-level, that has been included in Currency & other adj.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
6 of 33
Operating results
Operating profit before other items was DKK 1,688
million (H1 2024: DKK 1,580 million) and operating
margin was 4.1% (H1 2024: 3.9%). Excluding the
effect from IAS 29 (Türkiye hyperinflation) operating
profit before other items amounted to DKK 1,736
million (H1 2024: DKK 1,600 million) corresponding
to an operating margin of 4.2% (H1 2024: 4.0%).
The increase in operating margin in the first half of
2025 was mainly a result of continued operational
improvements and efficiencies realised across the
Group, including the positive impact from structural
adjustments performed at corporate level in
previous years.
In the UK, operational and financial improvements
continued in the first half of 2025, and thus
contributed to the Group’s margin enhancement.
Despite solid improvement, the UK remained dilutive
to the Group operating margin.
From a regional perspective, the margin
enhancement was supported by Central & Southern
Europe, driven by generally robust developments,
most significantly in Switzerland and Spain. In
Northern Europe, margin improved as a result of
operational improvements in general as well as
certain one-off income. In Asia & Pacific, margin
decreased slightly as H1 2024 was supported by
certain one-off income in Australia and Singapore.
The margin in the Americas was impacted by
commercial investments, primarily related to staffing
and infrastructure to further strengthen our
platform.
Corporate costs amounted to DKK 460 million (H1
2024: DKK 481 million) corresponding to 1.1% of
Group revenue (H1 2024: 1.2%). The slight decrease
relative to revenue reflected savings and efficiencies
achieved as a result of the Group’s strategic
initiatives.
Finance income and costs, net was DKK 296 million
(H1 2024: DKK 288 million) including a monetary
gain of DKK 55 million relating to hyperinflation
restatement in Türkiye (IAS 29). Excluding the impact
from IAS 29, finance costs, net of DKK 351 million
were unchanged compared with last year (H1 2024:
DKK 351 million).
The effective tax rate in H1 2025 was 22.5% (H1
2024: 23.5%) and 21.6% (H1 2024: 21.8%) when
adjusted for the impact of IAS 29. The effective tax
rate was positively impacted by the release of
valuation allowances on deferred tax assets in
Germany similar to last year, whereas the impact
from hyperinflation adjustments in Türkiye impacted
negatively.
Net profit was DKK 995 million (H1 2024: DKK 869
million).
Operati ng profi t before other i tems
(DKKm)
H1 2025 H1 2024
Northern Europe 774 4.9% 680 4.4%
Central & Southern Europe 754 5.3% 697 5.3%
Asia & Pacific
484 6.7% 481 6.8%
Americas
111 2.8% 209 4.6%
Other countries
25 6.4% 14 4.0%
Corporate / eliminations
(460) - (481) -
Group, excl. IAS 29
1,736
4.2 %
1,600
4.0%
Group
1,688
4.1 %
1,580
3.9%
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
7 of 33
Commercial development
As previously announced, a new Group Commercial
and Revenue function was formed in January 2025
to lead the strategic priority “Customer Centric
Growth”. In the first six months of 2025, focus has
been on mobilising the new function, including the
updated strategic initiative, while at the same time
keeping momentum on ongoing commercial
processes and retentions.
In H1 2025, ISS won six new contracts, mainly with
large key account customers in Europe, including a
new contract with Danish-based Velux covering 12
countries in Northern and Central & Southern
Europe. Under the new contract, ISS will deliver a
wide range of services such as cleaning, food, waste
management, reception and outdoor maintenance.
Furthermore, ISS extended and expanded several
large key account contracts across the Group, eight
of which included significant scope expansions,
reflecting our focus on driving volume growth across
geographies and verticals. In addition, we extended
several mid-sized and smaller contracts and
announced one scope reduction with an Energy
Customer in Europe. As a result, the customer
retention rate was 93% (LTM) in H1 2025.
In July 2025, ISS also announced the strengthening
of the partnership in Europe with a major global
beverage manufacturer and distributor. ISS already
delivers cleaning services to the customer in Spain.
Under the new five-year agreement to commence 1
January 2026, the scope will expand significantly to
include a broader range of integrated facility
services, including technical maintenance, reception,
greenery, winter services, and pest control. The
contract will also extend across borders to cover
Portugal, Norway, and Sweden.
The commercial pipeline for integrated facility
services solutions remains attractive, mainly driven
by local and regional opportunities.
H1 2025
Major key account developments
1)
Countries
Segment
Term
Effective
Wins
Insurance
Customer
Europe
Financial services
5 years
Q1 2025
Professional services Customer
Europe
Professional services
5 years
Q1 2025
Aroundtown
Germany
Financial services
3 years
Q2 2025
Technology Customer
India
Business Service and IT
5 years
Q2 2025
Velux
Europe
Industry & Manufacturing
5 years
Q4 2025
Healthcare
Customer
Austria
Healthcare
Multi years
Q2 2026
Ex
tensions
Danish Crown A/S
Denmark
Food & Beverages
5 years
Q1 2025
Salling Group A/S
Denmark
Retail & Wholesale
5 years
Q1 2025
Healthcare
Customer
Spain
Healthcare
5 years
Q2 2025
Real Estate Customer
Hong Kong
Real Estate
3 years
Q2 2025
Healthcare
Customer
UK
Healthcare
1 year
Q2 2025
Healthcare
Customer
UK
Healthcare
11 years
Q2 2025
Healthcare
Customer
UK
Healthcare
2 years
Q4 2025
Healthcare
Customer
UK
Healthcare
1 year
Q4 2025
Communications
Customer
Norway
Business Service and IT
1 year
Q4 2025
Ex tensions, including ex pansions
Construction
Customer
Türkiye
Industry & Manufacturing
1 year
Q1 2025
Melbourne Airport
Australia
Transportation & Infrastructure
1 year
Q1 2025
Natural Resources Customer
APAC
Energy and Resources
5 years
Q2 2025
Healthcare Customer (FM)
Singapore
Healthcare
5 years
Q2 2025
Healthcare Customer (Cleaning)
Singapore
Healthcare
5 years
Q2 2025
Technology Customer
Europe
Business Service and IT
3 years
Q3 2025
Professional services Customer
India
Professional services
5 years
Q2 2025
R
eductions
Energy Customer
Europe
Energy and Resources
Q1 2026
1)
Annual revenue above DKK 100 million.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
8 of 33
Free cash flow
Free cash flow in H1 2025 was DKK (542) million (H1
2024: DKK (1,095) million), an improvement of DKK
553 million compared with the same period last year
mainly due to a positive development in changes in
working capital and improved operating profit
before other items.
Cash flow from operating activities in H1 2025
amounted to DKK 135 million (H1 2024: DKK (333)
million), an improvement of DKK 468 million
compared with H1 2024 due to an increase in
operating profit before other items and a less
negative development in changes in working capital.
In line with normal seasonality, changes in working
capital in H1 2025 was an outflow of DKK 1,578
million (H1 2024: outflow of DKK 1,854 million).
However, as a result of improved collection of trade
receivables across the Group and lower growth than
previous periods, the outflow improved DKK 268
million compared with the same period last year.
Utilisation of factoring decreased to DKK 1.52 billion
(H1 2024: DKK 1.61 billion) driven by less invoices
eligible for factoring.
Cash flow from investing activities in H1 2025
amounted to DKK (515) million (H1 2024: DKK (1,669)
million). The decreased outflow of DKK 1,154 million
related to acquisitions and divestments in H1 2024
as well as fixed-term deposit investments for
placement of excess liquidity at 30 June 2024 until
bond repayment in December 2024.
Investments in intangible assets and property and
equipment, net, was DKK 309 million (H1 2024: DKK
289 million), which represented 0.7% of Group
revenue (H1 2024: 0.7%) and reflected continued
strict investment discipline.
Cash flow from financing activities in H1 2025 was an
inflow of DKK 1,176 million (H1 2024: DKK 2,066
million).
Proceeds from the Euro-Commercial Paper (ECP)
programme established in May 2025 amounted to
DKK 3,474 million.
Purchase of own shares was an outflow of DKK 1,254
million (H1 2024: DKK 378 million) and related to the
Group’s share buyback programme.
Capital structure
In line with ISS’s capital allocation policy, a key
objective is to maintain an investment grade rating
as it is important from both a financial and
commercial perspective. To adhere to the
investment grade rating, ISS targets a net debt to
pro-forma adjusted EBITDA (LTM) of 2.0x-2.5x. ISS
currently holds BBB / Stable outlook by S&P Global
and Baa3 / Positive outlook by Moody’s.
On 30 June 2025, net debt amounted to DKK 14.1
billion, an increase of DKK 2.8 billion compared with
31 December 2024. The increase was driven by
negative free cash flow in H1 2025, dividends paid to
shareholders and execution of the share buyback
programme. Despite EBITDA growth, the higher net
debt resulted in an increase in financial leverage to
2.5x at 30 June 2025 based on pro forma EBITDA
(LTM) compared with 2.0x at year-end 2024. The
increased leverage at half-year reflects normal
seasonality, although slightly improved from
leverage of 2.6x at 30 June 2024.
On 27 May 2025, ISS established a Euro-Commercial
Paper (ECP) programme to enhance financial
flexibility and diversify the Group’s funding structure,
enabling more efficient and timely access to short-
term financing. The programme allows for the
issuance of unsecured notes up to a maximum
principal amount of EUR 900 million. Notes under
the programme have maturities of up to 364 days,
typically shorter than six months. Each note carries
a fixed interest rate for its duration and may be
issued either at a discount or on an interest-bearing
basis, depending on market conditions. S&P Global
has assigned an A-2 short-term credit rating to the
ECP Programme. At 30 June 2025, the outstanding
amount under the ECP programme was DKK 3,474
million.
Subsequent to 30 June 2025, EUR 500 million of the
Group’s EMTNs reached maturity on 7 July 2025 and
were repaid in full through a combination of cash
and funding obtained in the newly established ECP
programme.
An additional EUR 500 million of EMTN bonds will
mature in June 2026. Over the next 12 months, the
Group will evaluate different financing options.
Except for this, and notes outstanding under the ECP
programme, ISS had no material short-term debt
maturities at 30 June 2025.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
9 of 33
Equity
At 30 June 2025, equity was DKK 10,395 million (31
December 2024: DKK 11,913 million), equivalent to
an equity ratio of 20.3% (31 December 2024: 23.5%).
The decrease in equity from year-end 2024 was
mainly a result of purchase of own shares of DKK
1,254 million and dividends paid to shareholders of
DKK 534 million partly offset by net profit of DKK 995
million. Additionally, foreign currency adjustments
were negative DKK 1,009 million, primarily related to
the US, Hong Kong and Australia. Hyperinflation (IAS
29) restatement of equity in Türkiye as of 1 January
2025 was DKK 193 million (1 January 2024: DKK 242
million).
On 11 April 2025, the Annual General Meeting
adopted the Board of Directors’ proposal to reduce
the Company’s share capital from 185,668,226 to
174,200,000 shares. The reduction was
implemented on 12 May 2025 by way of cancellation
of 11,468,226 own shares with an average price of
131.96 and amounting to a total value of DKK 1,513
million.
Management changes
On 11 April 2025, Henrik Lind and Jens Bjørn
Andersen were elected as new members of the
Board of Directors at the Annual General Meeting.
Søren Thorup Sørensen did not seek re-election and
stepped down as a member of the Board of
Directors. In addition, Jens Bjørn Andersen was
elected new Deputy Chair and replaced Lars
Petersson who will continue as a member of the
Board of Directors. With these changes, ISS has
expanded the Board of Directors from 10 members
to 11 members.
Events after the reporting period
On 7 July 2025, EUR 500 million of the Group’s
EMTNs reached maturity and were repaid in full.
Other than as set out above, no events have
occurred subsequent to 30 June 2025, which are
expected to have a material impact on the Group's
financial position.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
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Regional Performance
Northern Europe
Q2 2025
Revenue amounted to
DKK 8,002 million,
which was an increase
of 2% compared with
the same period last
year. Organic growth
was 1% (Q2 2024: 7%),
currency effects were
positive with 1%, and the effect from acquisitions
and divestments, net, was neutral.
Organic growth was driven by price increases
implemented across the region and volume growth
from higher activity levels at customer sites, offset by
net negative contract wins. As a consequence,
portfolio revenue and projects and above-base work
both grew organically by 1%. The decrease in
organic growth compared with Q2 2024 was mainly
due to the annualisation effect from startup of new
contracts in Q2 2024, predominantly Defra in the UK
the Danish Building and Property Agency in
Denmark.
H1 2025
Revenue amounted to DKK 15,852 million in the first
six months of 2025, which was an increase of 3%
compared with the same period last year. Organic
growth was 2% (H1 2024: 6%), currency effects were
positive by 1%, while the effect from acquisitions and
divestments, net was neutral.
Organic growth was mainly driven by price increases
implemented across the region and positive
contribution from startup of new contracts,
including annualisation effects predominately from
Defra in the UK and the Danish Building and
Property Agency in Denmark. This was partially
offset by smaller contracts lost or exited. Portfolio
revenue grew organically by around 2% and revenue
from projects and above-base work grew by around
3% organically. All countries, except Norway,
reported positive organic growth, though most
notably the UK and Finland.
Operating profit before other items amounted to
DKK 774 million in H1 2025 (H1 2024: DKK 680
million) corresponding to an operating margin of
4.9% (H1 2024: 4.4%). During the first half of the
year, operational execution and efficiencies drove
margin improvements in all countries across the
region. In the UK, operating margin continued to
improve in line with expectations, impacted by run-
rate improvements and certain one-off income.
Central & Southern Europe
Q2 2025
Revenue amounted to DKK 7,144 million, which was
an increase of 7% compared with the same period
last year. Organic
growth was 9% (Q2
2024: 12%),
acquisitions and
divestments, net
increased revenue
by 2%, while
currency effects
and the net impact
from hyperinflation
restatement
in
Türkiye (IAS 29) were negative with 4% and 1.3%,
respectively.
Organic growth was predominately driven by
implemented price increases in Türkiye and a robust
development across the region. Portfolio revenue
grew 9% organically, while organic growth from
projects and above-base work was 13%.
H1 2025
Revenue amounted to DKK 14,377 million in the first
six months of 2025, which was an increase of 9%
compared with the same period last year. Organic
growth was 9% (H1 2024: 12%). Acquisitions and
divestments, net in Switzerland, Spain and Austria
increased revenue by 3%. Currency effects and the
net impact from hyperinflation restatement in
Türkiye (IAS 29) was negative with 3% and 1.0%,
respectively.
Organic growth was primarily driven by Türkiye
where price increases were successfully passed on
to customers to offset the high level of wage
inflation. Like in previous years, another round of
minimum wage increases was imposed in the
beginning of the year. Portfolio revenue grew by 9%
organically, and revenue from projects and above-
base work showed organic growth of 13% driven by
increased demand for refurbishment projects.
Organic growth was broad based in the region.
Operating profit before other items excluding IAS 29
amounted to DKK 802 million in H1 2025 (H1 2024:
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
11 of 33
DKK 697 million) corresponding to an operating
margin of 5.6% (H1 2024: 5.3%). The margin
enhancement was driven by generally robust
developments, most significantly in Switzerland and
Spain. All countries, except Türkiye, where margins
reduced slightly, reported margin improvements
compared with the same period last year. Including
the effect of IAS 29, operating profit before other
items amounted to DKK 754 million, corresponding
to an operating margin of 5.3% (H1 2024: 5.1%).
Ownership of ISS Türkiye
ISS Türkiye is jointly owned by private equity fund
Actera (39.9%), management of ISS Türkiye (10%)
and ISS (50.1%) being the controlling shareholder.
The shareholders’ agreement between ISS, Actera
and management establishes the rights and
obligations of the parties, including rights and
restrictions on transferring shares, such as right of
first refusal, drag along rights from Q4 2024 and
right to explore a potential Initial Public Offering
(IPO). As previously mentioned, and in line with the
terms of the shareholders’ agreement, Actera has
initiated a dialogue to explore their potential exit
options, and that dialogue remains ongoing. Please
refer to page 23 in the Annual Report 2024.
Asia & Pacific
Q2 2025
Revenue amounted
to DKK 3,586 million,
which was an
increase of 2%
compared with the
same period last
year.
Organic
growth was 8% (Q2
2024: 1%), while
acquisitions and
divestments, net
was neutral, and
currency effects reduced revenue by 6%. Organic
growth was driven by price increases implemented
across the region, volume growth from higher
activity levels at customer sites and positive organic
growth from projects and above-base work. This
development was partly offset by a number of
smaller contract exits across the region.
H1 2025
Revenue amounted to DKK 7,267 million in the first
six months of 2025, which was an increase of 3%
compared with the same period last year. Organic
growth was 6% (H1 2024: 3%). The effect from
acquisitions and divestments, net was neutral, and
currency effects impacted revenue negatively by 3%.
Organic growth was driven by price increases
implemented across the region and volume growth
from increased activity levels at customer sites,
which was partly offset by effects from deliberate
contract exits in 2024. As a result, portfolio revenue
grew organically by 5%. Revenue from projects and
above-base work grew 13% organically mainly due
to demand for refurbishment projects. Australia,
New Zealand, Hong Kong and Singapore reported
solid organic growth, whereas growth in China,
Indonesia and India was negative, mainly related to
deliberate smaller contract exits.
Operating profit before other items amounted to
DKK 484 million in H1 2025 (H1 2024: DKK 481
million) corresponding to an operating margin of
6.7% (H1 2024: 6.8%). The development reflected
operational improvements and efficiencies being
executed across the region, which was offset by the
effect from certain one-off income in H1 2024
related to employee tax refunds in Australia and
government grants in Singapore.
Americas
Q2 2025
Revenue amounted to
DKK 1,917 million,
which was a decrease of
16% compared with the
same period last year.
Organic growth was
negative by 10% (Q2
2024: negative 5%). The
effect from acquisitions
and divestments, net
was neutral, and currency effects reduced revenue
by 6%. The negative organic growth was primarily
driven by deliberate contract exits in H1 2024,
though partly offset by price increases and positive
volume growth leading to negative 9% organic
growth from portfolio revenue. The contracts lost
and exited also had a negative effect on revenue
from projects and above-base work, which declined
22% organically.
H1 2025
Revenue amounted to DKK 3,973 million in the first
six months of 2025, which was a decrease of 12%
compared with the same period last year. Organic
growth was negative 9% (H1 2024: negative 3%). The
effect from acquisitions and divestments, net was
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
12 of 33
neutral, while currency effects impacted revenue
negatively by 3%.
The negative organic growth was primarily driven by
deliberate contract exits and losses in H1 2024
having full effect in the period as well as volume
reductions with existing customers. This was only
partly offset by price increases implemented across
the region to offset wage and cost inflation. As a
result, portfolio revenue decreased by 10%
organically.
Operating profit before other items amounted to
DKK 111 million in H1 2025 (H1 2024: DKK 209
million) corresponding to an operating margin of
2.8% (H1 2024: 4.6%). The margin was impacted by
commercial investments, primarily related to staffing
and infrastructure, to strengthen our platform for
future growth.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
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Outlook
Outlook 2025
This section should be read in conjunction with
“Forward-looking statements” as shown in the table
on next page.
In H1 2025, organic growth, operating margin and
free cash flow developed in line with expectations.
The 2025 outlook is thus confirmed for all three
financial KPIs.
The outlook assumes that macroeconomic and
geopolitical uncertainties remain elevated, at the
same time making ISS’s business model more
relevant than ever. The execution of the OneISS
strategy through our updated strategic priorities
continues and will support the commercial growth
agenda, enable further cost efficiencies and ensure
continued high focus on driving shareholder value.
The outlook is excluding any effects of hyperinflation
(IAS 29).
Organic growth is still expected to be 4 – 6% for 2025
(2024: 6.3%). Growth will be driven by price increases
across the Group to offset wage and cost inflation
and protect operating margins. We now expect a
slightly higher positive volume contribution from
growing with our existing customers. Due to
phasing, the contribution from net contract wins is
now slightly lower compared to our original
expectations. The total impact from the two
components is unchanged. The impact from
projects and above-base work is still expected to be
neutral to slightly negative.
Operating margin is still expected to be above 5%
(2024: 5.0%). Across the Group, we expect to see
further operational improvements and efficiencies,
including scale benefits. Our focus is on increasing
nominal operating profit before other items and
thereby driving increased shareholder value.
The expectation for free cash flow is still based on an
underlying free cash flow of above DKK 2.6 billion,
equalling a cash conversion of above 60%. However,
adjusted for DKK 0.2 billion in 2024 prepayments for
2025 services not yet rendered and receivables paid
before due date, the reported free cash flow is
expected to be above DKK 2.4 billion for 2025.
Assuming payments withheld by Deutsche Telekom
(DTAG) in 2024 are received in 2025, reported free
cash flow is expected to be above DKK 3.0 billion.
Expected revenue impact from
acquisitions, divestments and foreign
exchange rates in 2025
Acquisitions and divestments completed by 31 July
2025 (including in 2024) are expected to have a
positive impact on revenue growth in 2025 of
around 0.5%-point.
Based on the current exchange rates, a negative
impact on revenue growth of around 3-4%-points
1)
(previously negative around 2-3%-point) is expected
in 2025 from the development of foreign exchange
rates, excluding any effects of hyperinflation (IAS 29).
1)
The forecasted average exchange rates for the financial year 2025
are calculated using the actual average exchange rates for the first
seven months of 2025 and the average forward exchange rates (as
of 11 August 2025) for the remaining five months of 2025.
Financial targets
At the Capital Markets Day in November 2022, new
financial targets were announced for organic
growth, operating margin and cash conversion.
From 2024 and beyond, ISS targets to deliver strong
growth at attractive and sustainable margins:
•
Organic growth of 4 – 6%
•
Operating margin above 5%
• Cash conversion above 60%
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
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Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
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Management statement
Executive Group Management Board
Board of Directors
E = Employee representative
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ISS A/S – Interim report for 1 January - 30 June 2025
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Condensed
consolidated
interim financial
statements
Primary financial statements
Statement of profit or loss 17
Statement of comprehensive income 18
Statement of cash flows 19
Statement of financial position 20
Statement of changes in equity 21
Basis of preparation
1
Basis of preparation 22
2
Significant estimates and judgements 22
Statement of profit or loss
3
Operating segments 23
4
Revenue disaggregation 24
5
Share-based payments 25
6
Other income and expenses, net 25
7
Finance income and costs 26
Statement of cash flows
8
Changes in working capital 26
9
Free cash flow 27
Statement of financial position
10
Impairment tests 27
11
Equity 27
12
Borrowings 28
13
Pensions and similar obligations 29
14
Provisions 29
Other
15
Hyperinflation in Türkiye 30
16
Subsequent events 31
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Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
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Statement of profit or loss
1 January – 30 June
(DKKm)
Note
YTD
2025
YTD
2024
Revenue 3, 4, 15 41,613 40,681
Employee costs
3, 5
(27,226 )
(26,365 )
Consumables
(3,460 )
(3,727 )
Other operating expenses
(8,474 )
(8,275 )
Depreciation and amortisation
3
(765 )
(734 )
Operating profit before other items 15 1,688 1,580
Other income and expenses, net
6
(60 )
(23 )
Amortisation/impairment of customer contracts
(48 )
(40 )
Operating
profit
3, 15 1,580 1,517
Finance income
7
Finance costs
7
(445 )
(432 )
Profit before tax
Income tax (289 )
(289 )
Net profit from continuing operations
Net profit from discontinued operations - (71 )
Net profit 15
Attributable to:
Owners of ISS A/S 1,016
Non-controlling interests
(21 )
Net profit
Earnings per share, DKK
Basic earnings per share (EPS) 5.9 4.7
Diluted earnings per share
Earnings per share for continuing operations, DKK
Basic earnings per share (EPS) 5.9 5.1
Diluted earnings per share
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Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
18 of 33
Statement of comprehensive income
1 January – 30 June
(DKKm)
Note
YTD
2025
YTD
2024
Net profit
Items that will not be reclassified to profit or loss:
Remeasurement gain/(loss), defined benefit plans
13
Asset ceiling, defined benefit plans
13
(183 )
(332 )
Tax
(25 )
Items that may be reclassified to profit or loss:
FX adjustments of foreign entities
(1,009 )
(11 )
Hyperinflation restatement of equity at 1 January
15
Other comprehensive income
(773 )
Comprehensive income
Attributable to:
Owners of ISS A/S
Non-controlling interests
(69 )
Comprehensive income
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Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
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Statement of cash flows
1 January – 30 June
(DKKm)
Note
YTD
2025
YTD
2024
Operating profit before other items
Operating profit before other items from discontinued operations
Depreciation and amortisation
Non-cash items related to hyperinflation
15
(13 )
(20 )
Share-based payments
Changes in working capital
8
(1,578 )
(1,854 )
Changes in provisions, pensions and similar obligations
(102 )
(204 )
Other expenses paid
(23 )
(15 )
Interest received
Interest paid
(395 )
(296 )
Income tax paid
(352 )
(329 )
Cash flow from operating activities
15
(333 )
Acquisitions
(6 )
(302 )
Divestments
(19 )
(330 )
Acquisition of intangible assets, property and equipment (315 )
(297 )
Disposal of intangible assets, property and equipment
Changes in cash deposits and pledges
(187 )
Changes in financial assets
(3 )
Fixed-term deposit investments
Cash flow from investing activities
15 (515 )
(1,669 )
Proceeds from issued bonds
Proceeds from Euro-Commercial Paper (ECP) programme, net
12
Repayment of lease liabilities
(440 )
(531 )
Other financial payments, net
(70 )
(290 )
Transactions with non-controlling interests
Dividends paid to shareholders
(534 )
(425 )
Purchase of treasury shares
(1,254 )
(378 )
Cash flow from financing activities
15 1,176 2,066
Total cash flow
Cash and cash equivalents at 1 January 6,829 6,093
Total cash flow
Foreign exchange adjustments
(220 )
(32 )
Cash and cash equivalents at 30 June 7,405 6,125
Free cash flow 9, 15 (542 )
(1,095 )
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ISS A/S – Interim report for 1 January - 30 June 2025
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Statement of financial position
(DKKm)
Assets
Intangible assets
15
Right-of-use assets
15
Property and equipment
15
Deferred tax assets
Cash deposits and pledges
Financial assets
Non-current assets
Inventories
Trade receivables 12,885 12,488 12,449
Tax receivables
Other receivables
Fixed-term deposit investments
Cash and cash equivalents
Current assets
Total assets 51,084 50,139 50,641
Equity and liabilities
Equity attributable to owners of ISS A/S 9,694 10,095 11,143
Non-controlling interests
Total equity
15 10,395 10,793 11,913
Borrowings
12
Pensions and similar obligations
13
Deferred tax liabilities
15
Provisions
14
Non-current liabilities
Borrowings
12
Trade and other payables
Tax payables
Other liabilities
Provisions
14
Current liabilities
Total liabilities 40,689 39,346 38,728
Total equity and liabilities
30 June
30 June
31 December
Note
2025
2024
2024
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Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
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Statement of changes in equity
1 January – 30 June
Attributable to owners of ISS A/S
(DKKm)
2025
Equity at 1 January
(1,204 )
(971 )
Net
profit
Other comprehensive income
(782 )
(725 )
(21 )
(48 )
(773 )
Comprehensive income - - 1,073 (782 )
(69 )
Dividends
Share-based payments
5
Settlement of vested PSUs/RSUs
(128 ) - - - -
Purchase of treasury shares
Cancellation of own shares
11
(11 ) 1,513 (1,502 ) - - - -
Transactions with owners (11 )
(2,116 ) - (1,740 ) - (1,740 )
Changes in equity (11 )
(1,043 ) (782 ) (1,449 ) (69 ) (1,518 )
Equity at 30 June
(817 ) 12,090 (1,753 ) 9,694
2024
Equity at 1 January
(66 )
(1,277 )
Net
profit
Other comprehensive income - - (71 )
Comprehensive income - -
Dividends - - (425 ) - (425 ) - (425 )
Share-based payments - -
Settlement of vested PSUs/RSUs -
(79 ) - - - -
Purchase of treasury shares - (378 ) - - (378 ) - (378 )
Transactions with owners - (299 ) (459 ) - (758 ) - (758 )
Changes in equity - (299 )
Equity at 30 June
(365 ) 11,385 (1,110 ) 10,095
Trans-
Non-con-
Share Treasury Retained
lation
trolling
Total
Note
capital
shares
earnings
reserve
Total
interests
equity
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Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
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1
Basis of preparation
The condensed consolidated interim financial statements of ISS A/S for the period 1 January - 30 June 2025 comprise ISS A/S and
its subsidiaries (collectively, the Group) and have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted
by the EU and additional requirements of the Danish Financial Statements Act.
The report does not include all the information and note disclosures required in the annual consolidated financial statements, and
should be read in conjunction with the Group’s consolidated financial statements as at 31 December 2024.
The accounting policies applied are consistent with those applied in the preparation of the Group’s consolidated financial
statements for the year ended 31 December 2024, except for the adoption of a number of new and amended standards, which
became applicable for the current reporting period. None of these amendments have had a material impact on the Group's
financial statements, including notes.
2
Significant estimates and judgements
The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates
and assumptions that affected the application of policies and reported amounts of assets and liabilities, income and expenses as
well as the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities in future periods.
Except for the judgements and estimates commented upon in the notes of these condensed consolidated interim financial
statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended
31 December 2024, cf. Significant estimates and judgements on p. 109 in the consolidated financial statements for 2024.
Company announcement no. 47/2025
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ISS A/S – Interim report for 1 January - 30 June 2025
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3
Operating segments
ISS is a leading, global provider of workplace and facility service solutions operating in ~30 countries. Operations and business
performance are generally managed based on a geographical structure in which countries are grouped into four regions. These
regions make up the Group’s reportable segments.
The regions have been identified based on a key principle of grouping countries that share market conditions and cultures.
Countries where we do not have a full country-based support structure (global managed services) are combined in a separate
segment “Other countries”.
Central &
Northern
Southern
Asia &
Other
Total
(DKKm)
Europe
Europe
Pacific Americas
countries
segments
YTD
2025
Revenue, excl. IAS 29
15,852
14,377
7,267
3,973
392
41,861
Revenue
15,852 14,169 7,267 3,973
392
41,653
Employee costs (9,416) (9,777) (5,124) (2,265) (87) (26,669)
Depreciation and amortisation (293) (270) (69) (49) (2) (683)
Operating profit before other items, excl. IAS 29
774
802
484
111
25
2,196
Operating profit before other items
774
754
484
111
25
2,148
Operating
profit
756
706
484
94
25
2,065
YTD
2024
Revenue, excl. IAS 29
15,376
13,212
7,049
4,535
349
40,521
Revenue 15,376 13,397 7,049 4,535
349
40,706
Employee costs (9,175) (9,215) (4,887) (2,436) (97) (25,810)
Depreciation and amortisation (272) (255) (71) (56) (2) (656)
Operating profit before other items, excl. IAS 29
680
697
481
209
14
2,081
Operating profit before other items
680
677
481
209
14
2,061
Operating
profit
679
632
478
200
14
2,003
Reconciliation of operating profit
(DKKm)
YTD
2025
YTD
2024
Operating profit for reportable segments
Unallocated corporate costs
2,065
(485)
2,003
(486)
Operating
profit
1,580 1,517
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ISS A/S – Interim report for 1 January - 30 June 2025
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4
Revenue disaggregation
(DKKm)
YTD
2025
Revenue base
Portfolio
Projects and above-base work
12,860
2,992
11,902
2,267
6,564
703
3,542
431
292
100
(24)
(16)
35,136
6,477
Total
15,852
14,169
7,267
3,973
392
(40)
41,613
Customer category
Key
accounts 11,408 9,017 5,258 3,035 388 (37) 29,069
Large and medium 3,337 4,426 1,626 929 - (1) 10,317
Small and route-based 1,107 726 383 9 4 (2) 2,227
Total
15,852
14,169
7,267
3,973
392
(40)
41,613
Customer segments
Office-based 6,669 5,656 2,295 1,841 196 (38) 16,619
Production-based 3,109 2,928 1,581 1,146 179 (3) 8,940
Healthcare
2,418 2,220 1,557 55 - 1 6,251
Other
3,656 3,365 1,834 931 17 - 9,803
Total
15,852
14,169
7,267
3,973
392
(40)
41,613
Core services
Cleaning 6,495 6,631 3,425 1,055 47 (10) 17,643
Technical 3,858 4,092 610 794 100 (17) 9,437
Food 2,765 1,273 566 1,655 30 (4) 6,285
Other
2,734 2,173 2,666 469 215 (9) 8,248
Total
15,852
14,169
7,267
3,973
392
(40)
41,613
YTD
2024
Revenue base
Portfolio
12,540
11,417
6,412
4,079
251
(22)
34,677
Projects and above-base work 2,836 1,980 637 456 98 (3) 6,004
Total
15,376
13,397
7,049
4,535
349
(25)
40,681
Customer category
Key accounts
11,056
8,872
4,962
3,557
344
(18)
28,773
Large and medium 3,370 3,862 1,655 970 - (3) 9,854
Small and route-based 950 663 432 8 5 (4) 2,054
Total 15,376 13,397 7,049 4,535 349 (25) 40,681
Customer segments
Office-based
6,475
5,200
2,135
1,940
175
(23)
15,902
Production-based 3,087 2,996 1,666 1,577 156 (1) 9,481
Healthcare
2,290 2,066 1,609 47 - - 6,012
Other
3,524 3,135 1,639 971 18 (1) 9,286
Total 15,376 13,397 7,049 4,535 349 (25) 40,681
Core services
Cleaning
6,536
6,102
3,382
1,137
61
(14)
17,204
Technical 3,443 3,886 533 998 65 1 8,926
Food 2,854 1,151 620 1,732 28 1 6,386
Other
2,543 2,258 2,514 668 195 (13) 8,165
Total
15,376
13,397
7,049
4,535
349
(25)
40,681
Central &
Northern
Southern
Asia &
Other
Unall./
Europe
Europe
Pacific Americas
countries
IC elim.
Total
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
25 of 33
5
Share-based payments
Long-Term Incentive Programme (LTIP)
In March 2025, a new LTIP programme (LTIP 2025) was established, and a total of 847,696 performance-based share units (PSUs)
were granted to members of the EGM and other senior officers of the Group. Upon vesting, each PSU entitles the holder to receive
one share at no cost. Subject to certain criteria, the PSUs will vest after three years. The programme and vesting criteria are
described in note 6.2 in the consolidated financial statements for 2024.
LTIP 2025
Fair value (DKKm)
At grant date
102
PSUs and participants (number)
Participants
125
PSUs
granted 847,696
Maximum PSUs at initial grant date 927,921
Vested programmes
In March 2025, the LTIP 2022 programme vested. Based on the annual EPS and TSR performance for 2022, 2023 and 2024, 75% of
the granted PSUs vested. After this vesting, no further PSUs are outstanding under the LTIP 2022, and the programme has lapsed.
6
Other income and expenses, net
(DKKm)
YTD
2025
YTD
2024
Gain on divestments -
6
Other income
-
6
Loss on divestments (17)
(3)
Acquisition and integration costs
(17)
(16)
Other
(26)
(10)
Other expenses
(60)
(29)
Other income and expenses, net (60)
(23)
Gain on divestments in 2024 related to the divestment of the travel management business in Sweden.
Loss on divestments mainly related to an adjustment of the deferred consideration for the Specialized Services business in the US,
which was divested in 2021. In 2024, the loss mainly related to the divestment of the Ground Service business in Austria.
Acquisition and integration costs related to the Group’s acquisitions in Spain, Switzerland and Belgium.
Other comprised mainly remeasurement of the contingent consideration related to the transaction in 2021, where ISS disposed a
minority stake in ISS Türkiye.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
26 of 33
7
Finance income and costs
(DKKm)
YTD
2025
YTD
2024
Interest income on cash and cash equivalents
Monetary gain on hyperinflation restatement (ISS Türkiye)
94
55
81
63
Finance income
149
144
Interest expenses on borrowings
1)
(237)
(228)
Interest expenses on lease liabilities
1)
(76)
(72)
Net interest on defined benefit obligations
(34)
(19)
Bank fees
(28)
(31)
Interest expenses on factoring
1)
(27)
(41)
Amortisation of financing fees (non-cash)
1)
(14)
(12)
Commitment fees
(6)
(2)
Hedge ineffectiveness of interest rate swaps (4)
-
Other
(4)
(12)
Foreign exchange losses (15)
(15)
Finance costs (445)
(432)
1)
The total interest expensed determined on an amortised cost basis was DKK 354 million (2024: DKK 353 million).
Interest expenses on borrowings comprised mainly interest on issued bonds. The increase compared to 2024 was driven by
issuance of a new EMTN in May 2024 and was largely offset by lower net interests on the bond interest rate swaps due to
decreasing EUR interest rates.
Net interest on defined benefit obligations increased due to higher interest rates in Türkiye.
Interest expenses on factoring decreased due to lower interest rates throughout 2025.
8
Changes in working capital
(DKKm)
YTD
2025
YTD
2024
Changes in inventories
Changes in receivables
Changes in payables
(5)
(1,185)
(388)
(12)
(1,453)
(389)
Total
(1,578)
(1,854)
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
27 of 33
9
Free cash flow
Free cash flow as defined by management is summarised below. Free cash flow is not a financial performance measure defined by
IFRS. Accordingly, the measure and its calculation is presented as it is used by management as an alternative performance
measure in managing the business.
The free cash flow measure should not be considered a substitute for those measures required by IFRS and may not be calculated
by other companies in the same manner. As such, reference is made to the IFRS measures included in the consolidated statement
of cash flows of the consolidated financial statements.
(DKKm)
YTD
2025
YTD
2024
Cash flow from operating activities
135
(333)
Acquisition of intangible assets, property and equipment (315)
(297)
Disposal of intangible assets, property and equipment
6
8
Changes in financial assets
1)
9
6
Addition of right-of-use assets, net
(377)
(479)
Total
(542)
(1,095)
1)
Excluding changes in equity-accounted investments of DKK (3) million (2024: DKK (9) million).
10
Impairment tests
The Group performs impairment tests on intangibles, i.e. goodwill, brands and customer contracts, annually and whenever there is
an indication that intangibles may be impaired. The annual impairment test is performed as per 31 December based on financial
forecasts approved by management covering the following financial year.
At 30 June 2025, the review performed did not indicate impairment of the carrying amount of intangibles. Based on the review
performed, it is management’s opinion, that excess values are fairly resilient to any likely and reasonable deteriorations in the key
assumptions applied and presented in note 3.2 in the consolidated financial statements for 2024.
11
Equity
On 11 April 2025, the Annual General Meeting adopted the Board of Directors’ proposal to reduce the Company’s share capital
from 185,668,226 to 174,200,000 shares. The reduction was implemented on 12 May 2025 by way of cancellation of 11,468,226
own shares with an average price of 131.96 and amounting to a total value of DKK 1,513 million.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
28 of 33
12
Borrowings
(DKKm)
YTD 2025 YTD 2024
Issued bonds 15,675 17,806
Euro-Commercial Paper (ECP) programme 3,474 -
Lease liabilities
2,365 2,281
Bank loans
233 106
Borrowings
21,747 20,193
Non-current liabilities
9,832 17,165
Current liabilities
11,915 3,028
Borrowings
21,747 20,193
Non-current vs. current borrowings
At 30 June 2025, current borrowings amounted to 11.9 billion, an increase of DKK 8.9 billion compared to 30 June 2024. The
increase was mainly related to the issue of ECP notes as described below and reclassification of the Group’s EUR 500 million EMTN,
maturing in June 2026, from non-current borrowings. The latter resulted in a corresponding decrease in non-current borrowings,
which combined with the repayment of EUR 300 million of the Group's EMTNs in December 2024, were the main drivers of the
decrease in non-current borrowings compared to 30 June 2024 of DKK 7.3 billion.
Euro-Commercial Paper (ECP) programme
On 27 May 2025, ISS established a Euro-Commercial Paper (ECP) programme to enhance financial flexibility and diversify the
Group’s funding structure, enabling more efficient and timely access to short-term financing.
The programme allows for the issuance of unsecured notes up to a maximum principal amount of EUR 900 million. Notes under
the programme have maturities of up to 364 days, typically shorter than six months. Each note carries a fixed interest rate for its
duration and may be issued either at a discount or on an interest-bearing basis, depending on market conditions.
S&P Global has assigned an A-2 short-term credit rating to the ECP Programme.
As of 30 June 2025, the outstanding amount under the programme was DKK 3,474 million, with a weighted average interest rate of
2.4% and a weighted average remaining maturity of 52 days.
EMTN repayment on 7 July 2025
Subsequent to 30 June 2025, EUR 500 million of the Group's EMTNs reached maturity on 7 July 2025 and were repaid in full
through a combination of cash and funding obtained through the newly established ECP programme.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
29 of 33
13
Pensions and similar obligations
For interim periods, the Group’s defined benefit obligations are based on valuations from external actuaries carried out at the end
of the prior financial year taking into account any subsequent movements in the obligation due to pension costs, contributions etc.
up until the reporting date. Actuarial calculations are only updated to the extent that significant changes in applied assumptions
have occurred since 1 January. Based on an overall analysis carried out by management, it is determined whether updated actuarial
calculations should be obtained for interim periods.
At 30 June 2025, the overall evaluation carried out by management resulted in updated actuarial calculations being obtained for
Switzerland, the UK, Germany and Türkiye due to market fluctuations, which had impacted interest rates, inflation rates and asset
values. The updated calculations led to recognition of an actuarial gain of DKK 244 million and gain on plan assets of DKK 7 million,
which was largely offset by a net change in asset ceiling of DKK 183 million due to surplus restrictions. The net gain of DKK 68
million was recognised in other comprehensive income with a resulting decrease in the Group's defined benefit obligations.
14
Provisions
(DKKm)
Legal
claims and
disputes
Self-
insurance
Restruc-
turings
Onerous
contracts Other
YTD
2025
YTD
2024
At 1 January
95
242
3
25
238
603
752
FX
adjustments (7) (28) - - (11) (46)
15
Profit or loss impact:
Additions
22
142
11
-
1
176
165
Unused amounts reversed
(17) (3) - (6) (7) (33)
(34)
Used during the year (payment) (23) (146) (4) - (20) (193)
(276)
Reclass (to)/from other liabilities
8
- - - -
8
77
At 30 June
78
207
10
19
201
515
699
Non-current
34
112
1
10
160
317
405
Current
44
95
9
9
41
198
294
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
30 of 33
15
Hyperinflation in Türkiye
During the first six months of 2025, the inflation rate decreased to 16.67% (H1 2024: 24.73%) and the exchange rate for TRY/DKK
decreased from 20.30 in the beginning of year to 16.02 at 30 June 2025, leading to an average rate of 18.16 (H1 2024: 21.78).
The table below shows the accounting impact of the hyperinflation restatements for the period 1 January - 30 June 2025:
Inflation restatement,
in year effect
(DKKm)
YTD
2025
(excl.
IAS
29)
Non-
monetary
items
Profit
or
loss
Retrans-
lation
(end rates)
Total
adjust-
ments
YTD
2025
Profit or loss
Revenue 41,821 -
191
(399) (208) 41,613
Operating profit before other items 1,736 (38)
13
(23) (48) 1,688
Operating
profit
1,637 (47)
13
(23) (57) 1,580
Net
profit
990
- -
5
5
995
Financial ratios
Organic growth (non-IFRS) 4.1% - - - - 4.1%
Operating margin (non-IFRS) 4.2% (0.1%) 0.1% (0.1%) (0.1%) 4.1%
Cash flows
Operating activities
125
- -
10
10
135
Investing activities (517) - -
2
2
(515)
Financing activities 1,183 - - (7) (7) 1,176
Free cash flow (non-IFRS) (558) - -
16
16
(542)
YTD
2025
(excl.
IAS
29)
Inflation re-
statement,
accumu-
lated
YTD
2025
Financial position
Goodwill
19,002
928
19,930
Other intangible assets
3,361
376
3,737
Right-of-use assets, property and equipment 3,189
113
3,302
Total assets 49,667 1,417 51,084
Other comprehensive income
1)
(1,971) 1,198 (773)
Other equity elements
11,072
96
11,168
Total equity 9,101 1,294 10,395
Deferred tax liabilities
972
123
1,095
Total equity and liabilities 49,667 1,417 51,084
1)
In year impact of restatement amounted to DKK 193 million (2024: DKK 242 million).
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim report for 1 January - 30 June 2025
31 of 33
16
Subsequent events
On July 7 2025, EUR 500 million of the Group's EMTNs reached maturity and were repaid in full, see note 12.
Other than as set out above, no events have occurred subsequent to 30 June 2025, which are expected to have a material impact
on the Group's condensed consolidated financial statements.
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
32 of 33
Other
Conference Call
A conference call will be held on 12 August 2025 at
10:00 am CEST. Presentation material will be
available online prior to the conference call.
Dial-in details
DK: +45 78 76 84 90
SE: +46 40 68 206 20
UK: +44 203 769 6819
US: +1 646 787 0157
PIN code for all countries: 283234
https://issworld.eventcdn.net/events/interim-
report-h1-2025
For investor enquiries
Michael Vitfell-Rasmussen, Head of Group Investor
Relations
Phone: +45 53 53 87 25
E-mail: michael.vitfell@group.issworld.com
Anne Sophie Riis,
Senior Investor Relations Manager
Phone: +45 30 52 94 68
E-mail: anne.sophie.riis@group.issworld.com
For media enquiries
Charlotte Holm, Head of External Communications
Phone: +45 41 76 19 89
E-mail: charlotte.holm@group.issworld.com
Contact information
Tel.: +45 38 17 00 00
Fax.: +45 38 17 00 11
CVR 28 50 47 99
ESEF
data
Name of reporting entity: ISS A/S
Domicile of entity: Denmark
Legal form of entity: A/S
Country of incorporation: Denmark
Address: Buddingevej 197, DK -2860 Søborg
Principal place of business: Global
Principal activities: Workplace and facility service
Name of the parent entity: ISS A/S
Name of the ultimate parent and Group: ISS A/S
Company announcement no. 47/2025
Copenhagen, 12 August 2025
ISS A/S – Interim Report for 1 January – 30 June 2025
33 of 33
Our global footprint
ISS is a leading, global provider of workplace and facility service solutions. In
partnership with customers, ISS drives the engagement and well-being of people,
minimises the impact on the environment, and protects and maintains property.
ISS brings all of this to life through a unique combination of data, insight and
service excellence at offices, factories, airports, hospitals and other locations
across the globe. In 2024, Group revenue was DKK 83.8 billion.