Sodexo (SW) Q3 2025 TU earnings summary

Executive summary

• Q3 fiscal 2025 revenues reached €6,121 million, reflecting organic growth of 3.0% year-over-year, in line with expectations, and up 0.8% reported after negative currency and scope effects.

• Currency effects were negative at -2.1%, mainly due to US dollar and Latin American currency depreciation; scope changes had a minor -0.2% effect.

• Growth was supported by contract ramp-ups, pricing discipline, and business momentum, especially in core markets.

• North America, Europe, and Rest of the World contributed organic growth of 1.2%, 3.3%, and 7.5% respectively.

• Europe delivered growth driven by healthcare, seniors, and strong tourism-related activities, while Rest of the World was led by India, Brazil, and Australia.

Financial highlights

• Q3 revenues were €6,121 million, up 0.8% year-over-year, with organic growth of 3.0% and negative currency impact of -2.1%.

• Nine-month group revenue reached €18,596 million, up 2.3% year-over-year, with organic growth of 3.4%.

• Pricing contributed close to 3% of Q3 organic growth; volume and net contribution were slightly positive.

• Food services grew around 4% year-to-date, while facility management grew around 2%.

• Other income and expenses are expected at around €160 million, reflecting increased transformation and restructuring programs.

Outlook and guidance

• Fiscal 2025 organic growth and underlying operating margin are expected at the lower end of the 3–4% and 10–20 bps improvement ranges, respectively.

• Q4 organic growth will be negatively impacted by a 120 bps base effect from last year's Paris Olympics.

• Fiscal 2026 guidance will be provided with full-year results in October; net contribution from FY25 is expected to be modest.

• Margin improvement remains a focus, balanced with reinvestment in sales, brand, and digital initiatives.