ISS has delivered robust financial results in 2024, aligning with expectations and reflecting solid operational improvements across the Group. The company has also announced a new share buyback programme of DKK 2.5 billion following the completion of the previous DKK 1.5 billion buyback.
Financial Performance Highlights
- Organic growth of 6.3% (2023: 9.7%), supported by price increases, positive volume growth, and higher-than-expected above-base work revenue in the US.
- Operating margin improved to 5.0% (2023: 4.3%), with 6.0% in H2 2024, driven by broad-based operational improvements.
- Free cash flow reached DKK 2.0 billion (2023: DKK 1.8 billion), impacted by DKK 600 million withheld by Deutsche Telekom amid an ongoing dispute.
Business Developments
- ISS reviewed and reaffirmed the OneISS strategy, refining strategic priorities for growth acceleration.
- Executive Group Management was streamlined to five members in January 2025 to enhance efficiency.
- A 7-year contract worth DKK 1.2 billion annually was secured with the UK Department of Work and Pensions.
- Key contract extensions with Barclays and Nordea reinforced ISS’s global IFS partnerships.
- Five acquisitions were completed, including gammaRenax (Switzerland) and Grupo BN (Spain).
- The divestment of ISS France was finalized in April 2024, completing the Group’s strategic divestment programme.
- The arbitration process with Deutsche Telekom remains on track, with the final hearing scheduled for July 2025.
Capital Distribution & 2025 Outlook
- Financial leverage at 2.0x, at the lower end of the target range (2.0x–2.5x).
- Organic growth for 2025 is projected at 4 – 6%, with an operating margin above 5%.
- Free cash flow is expected to exceed DKK 2.4 billion, potentially surpassing DKK 3.0 billion if Deutsche Telekom payments are received.
- With a strong financial foundation, ISS is well-positioned for continued growth in 2025, leveraging its refined strategy and operational improvements.
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