Sodexo S.A. released its first-half fiscal 2026 results, showing consolidated revenues of €12.0 billion, a 3.7% decline year-over-year driven by adverse foreign exchange impacts. Organic revenue growth stood at 1.7%, supported by 2.4% pricing gains but offset by modest volume increases and net new business losses.
Key Financial Metrics
Underlying operating profit dropped 32.1% to €442 million, with the margin contracting 140 basis points to 3.7% at constant currencies. Factors included execution issues, mix effects, reduced leverage, and accelerated investments alongside contract reviews.
Operating profit fell to €312 million from €580 million last year, reflecting higher other operating expenses of €130 million tied to restructuring, leadership changes, and asset optimization. Group net profit reached €188 million, while underlying net profit declined 36.7% to €285 million.
Free cash flow remained stable at -€243 million amid seasonal patterns and elevated capex. Net debt rose to €3.6 billion, with a leverage ratio of 2.7x EBITDA.
New CEO’s Assessment
Thierry Delaporte, Group CEO and CEO of Sodexo North America, shared his initial insights during the earnings call. “My first priority as CEO has been to take a clear and objective view of where we stand and how we move forward,” Delaporte stated. He highlighted Sodexo’s strong assets in a resilient industry but acknowledged underperformance against peers due to under-investment and execution gaps in commercial intensity, decision-making, and delivery.
Delaporte noted ongoing leadership changes and organizational simplification to boost accountability. “The entire Sodexo organization is shifting gears, and we are seeing early positive signals,” he added.
Revised Full-Year Outlook
Sodexo lowered its fiscal 2026 guidance, now expecting organic revenue growth of 0.5% to 1.0%, down from 1.5% to 2.5%. Underlying operating profit margin is projected at 3.2% to 3.4%, with other operating expenses around -€300 million.
Management plans to detail its roadmap and medium-term ambitions at an investor update in Paris on July 16, 2026.
Segment and Regional Performance
Food services saw 0.8% organic growth, while facilities management advanced 3.6%. Regionally, North America declined 1.8%, Europe grew 2.8%, and the rest of the world surged 9.2%. Contract retention held at 93.4%, with development at 5.3%.
Recent moves include the acquisition of Grupo Mediterránea in Spain, completed late February 2026.
