Copenhagen, Feb 19, 2026, 12:22 CET — Regular session
- ISS stock slumped, even as the company rolled out a new DKK 2.5 billion buyback program.
- The company is projecting organic growth topping 5%, with operating margin also expected to clear 5% in 2026.
- Cash payouts, contract wins, and the result of the Deutsche Telekom arbitration are all on investors’ radar.
Shares of ISS A/S plunged around 5.6% to 239.2 Danish crowns on Thursday. The Danish facilities services company posted its full-year numbers, rolled out new 2026 targets, and revealed plans for a fresh share buyback. (Investing)
This update sets the tone for what ISS aims to hit next year: growth, margins, and cash flow. Investors have been turning up the heat on outsourcing firms, demanding clearer returns. ISS put 2025 organic growth at 4.3%—that’s excluding currency and deal effects—and sees it climbing above 5% by 2026, with operating margin topping 5%. Free cash flow came in at DKK 2.7 billion for 2025, and the company expects reported free cash flow to beat DKK 2.5 billion this year. “I am pleased with our robust progress in 2025 and the delivery of our financial targets,” CEO Kasper Fangel said. (GlobeNewswire)
ISS kicked off a fresh DKK 2.5 billion share buyback, planning for it to span from Feb. 19, 2026, through Feb. 22, 2027 at the latest. The programme splits into two tranches. The first, capped at DKK 1.25 billion, will run up to Aug. 7, 2026, with Nordea handling the execution. (GlobeNewswire)
Organic growth gets close scrutiny in this sector: price hikes can pad revenue, but actual work volumes and contract wins are more volatile. ISS reported that last year’s growth was mainly fueled by higher prices, while volume gains were only partly enough to counterbalance a net loss in contract wins.
Margins are still under the microscope. ISS left its 2025 operating margin before other items unchanged at 5.0%, noting that while operational improvements held steady, these gains were balanced out by commercial spending in the U.S.
The company highlighted contract wins as crucial for 2026. It locked in ten fresh deals with major key account clients for 2025, and also renewed and broadened several large key accounts—most of them clustered in Asia & Pacific. Retention rate? Up to 94%, according to the company.
Plenty remains in flux. ISS pointed to ongoing arbitration with Deutsche Telekom, with a decision likely coming in the first half of 2026. The company also cited currency pressure in its 2025 outlook—either factor could reshape cash flow and earnings.
ISS has its investor briefing scheduled ahead of its annual report, with a Q1 trading update coming May 5, its financial calendar shows. (ISS World)
Attention will shift next to the annual general meeting on April 16, a date that usually draws scrutiny over capital returns and board motions. (ISS World)
Traders now eye if the stock finds its footing after guidance headlines and wait for management to shed more light on contracts and margins. The focus down the road shifts to buyback pace and whatever happens next in the Deutsche Telekom case — both likely to remain in view.
