First half Fiscal 2026 results: reset in motion with first management actions; full-year guidance updated

Apr. 10, 2026
PR - H1 Fiscal 2026 results

Organic revenue growth of +1.7%
Underlying operating profit margin of 3.7%, down -140 bps at constant currencies,
impacted by both execution challenges and first management actions
Revised full year Fiscal 2026 guidance reflecting prevailing operating conditions:
- Organic revenue growth between +0.5% and +1%
- Underlying operating profit margin between 3.2% and 3.4%
Roadmap and mid‑term ambition to be presented at an Investor update in Paris on July 16, 2026

At the Board of Directors meeting held on April 9, 2026, chaired by Sophie Bellon, the Board approved the consolidated financial statements for the First half Fiscal 2026 ended February 28, 2026.

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First half Fiscal 2026 key figures

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My first priority as CEO has been to take a clear and objective view of where we stand and how we move forward.
I am convinced that Sodexo has strong and differentiated assets in an attractive and resilient industry. The engagement of our people, the pride they take in serving clients every day, and the depth of expertise they bring on the ground are a real strength.
That said, we have undeniably underperformed the market and our main competitors. The root causes have been building over time and relate primarily to under-investment and execution: commercial intensity, decision-making and prioritization, and consistency in delivery.
We have conducted a thorough review of our contracts and assets, with short-term financial implications reflected in both our first-half results and in the revised outlook we are setting for Fiscal 2026. This is deliberate and necessary to rebuild a powerful growth engine and restore Group competitiveness at scale.
While we know this will not be an overnight fix, we are moving with a strong sense of urgency on our action plan to restore growth. We have been making significant leadership changes and simplifying the organizational structure in order to accelerate decision-making and raise accountability standards.
The entire Sodexo organization is shifting gears, and we are seeing early positive signals.
We will outline our roadmap and share our mid-term ambition at an Investor update to be held in July.

Thierry DelaporteChief Executive Officer of Sodexo

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Highlights of the period

First half Fiscal 2026 consolidated revenues were at 12.0 billion euros, down -3.7% year-on-year due to a negative foreign exchange effect of -5.3% mainly driven by the US dollar. Based on current spot rates, these currency headwinds are expected to progressively ease in the second half, subject to market conditions.
The impact of acquisitions and disposals was not material in the first half, as the acquisition of Grupo Mediterránea was completed at the very end of February and will contribute more meaningfully in the second half.
Organic revenue growth was +1.7% in the first half.
- Pricing contributed around +2.4%.
- Like-for-like volume growth was around +0.2%, with active cross‑selling in US Healthcare, and a strong comparable in Sodexo Live! in the first half of last year.
- Net new business was at around -0.6%, reflecting prior‑year contract losses, mainly in Education and Corporate Services, particularly in North America.
- Organic growth was also impacted by a -0.3% effect from a contract reclassification in North America Business & Administrations, following a renegotiation and renewal. The annualized impact of this reclassification is around -100 basis points at Group level with a greater impact in the second half of 2026.
Food services grew at +0.8% organically, affected by past Education contract losses, while FM services delivered +3.6% growth, driven by new contract ramp‑ups in Europe and Rest of the World.
Organic growth by geography for the First half:
- North America: -1.8%, mainly reflecting contract losses in Education and Business & Administrations and, to a lesser extent, changes in scope on certain contracts, alongside the one‑off contract reclassification effect. Healthcare & Seniors continued to deliver strong growth driven by new contracts, while Sodexo Live! was softer due to strong prior‑year comparables.
- Europe: +2.8%, supported by Healthcare & Seniors and strong Sodexo Live! activity across airport lounges and events, while Education remained softer.
- Rest of the World: +9.2%, driven by new contract ramp‑ups and strong underlying dynamics notably in India, Australia and Brazil.
Underlying operating profit was 442 million euros, down -32.1% year-on-year. The underlying operating profit margin declined by -140 basis points at constant currencies to 3.7%, reflecting operational challenges and mix effects, lower operating leverage linked to softer growth dynamics and the acceleration of investments to strengthen execution. It also reflects the effects of the review of contracts and assets, including specific contract‑related provisions, in the light of their actual performance and current market conditions.
Other operating income & expenses amounted to -130 million euros, compared to -71 million euros in the prior year. The increase mainly reflects restructuring and rationalization costs linked to organizational changes, leadership adjustments and transformation projects. The current year also includes specific items relating to asset and footprint rationalization decisions, as well as pension-related items.
Operating profit came in at 312 million euros, compared to 580 million euros in the prior year, reflecting lower underlying operating profit and year-on-year differences in Other operating income and expenses.
Net financial expense amounted to 64 million euros, compared with 40 million euros in the prior year, mainly reflecting a higher blended cost of debt following the issuance of US dollar bonds in May 2025.
The Effective tax rate was 25.9%. In comparison, the effective tax rate for the prior-year was 19.5%, mainly impacted by the updated risk relating to the tax audit at Sodexo S.A., following the end of the proceedings during this period.
Group net profit amounted to 188 million euros. Group underlying net profit was 285 million euros, down -36.7% year on year, reflecting lower underlying operating profit and currency impacts.
Free cash flow in the first half Fiscal 2026 was a negative -243 million euros, broadly stable year-on-year, reflecting seasonal working capital patterns and higher capital expenditure, notably one‑off client investments linked to contract renewals, as well as lower operating profit, offsetting the exceptional tax outflow recorded in the prior year.
Net M&A expenditure totaled 256 million euros, mainly reflecting the acquisition of Grupo Mediterránea in Spain, completed on February 28, 2026, alongside smaller bolt‑on acquisitions in Europe.
Net debt stood at 3.6 billion euros, corresponding to a net debt to EBITDA ratio of 2.7x. This reflects the typical seasonality of cash flow in the first half, as well as a lower EBITDA base. Sodexo expects a seasonal improvement in net debt in the second half. However, considering the lower EBITDA level implied by the revised full‑year Fiscal 2026 guidance, the Group now expects to end Fiscal Year 2026 with a net debt to EBITDA ratio above its target range of 1-2x.

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Commercial activity*

At February 28, 2026, on a last‑twelve‑months basis, retention stood at 93.4%, compared to 94.0% at the end of Fiscal 2025 and development (excluding cross-selling) at 5.3%, compared to 5.7% at the end of Fiscal 2025.

* Retention and new signings are based on annualized revenue of contracts gained or lost during the period, irrespective of contract dates.

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Sustainability Highlights

Sodexo is deploying its Better Tomorrow 2028 roadmap to firmly anchor sustainability as a driver of operational excellence and long‑term value creation for its clients, supporting them in achieving their own sustainability ambitions.
In 2026, Sodexo was again included in the S&P Global Sustainability Yearbook, reflecting the consistency of its sustainability commitments and the progress achieved across environmental, social and governance criteria. In addition, Sodexo was recognized in 2026 as one of the World’s Most Ethical Companies® by Ethisphere, for the third consecutive year.
Sodexo teams, especially Sodexo chefs, continue to push the boundaries of sustainable cuisine. Their passion and creativity was demonstated at the 2026 fourth edition of its international sustainable chef challenge Cook for Change! Grand Finale, where they showcased innovative, healthy and sustainable dishes that deliver real value for clients and consumers.

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Governance

Since February 19, 2026, Sodexo has a new global Executive Team, reflecting a simplified leadership structure designed to streamline decision‑making, strengthen proximity to operations and reinforce execution focus. It is composed as follows:

Thierry Delaporte, Group Chief Executive Officer, also acting as CEO North America

Regional Chief Executive Officers

Patrick Boulier, CEO Latin America
Andrea Krewer, CEO Brazil
Nicolas Lannuzel, CEO Asia‑Pacific, Middle East & Africa
Sophie Néron‑Berger, CEO France
Jean Renton, CEO United Kingdom & Ireland
Ulf Wretskog, CEO Continental Europe

Nathalie Bellon‑Szabo, CEO Sodexo Live! Worldwide

Global functions

Alice Guéhennec, Group Chief Tech, Data & Digital Officer
Sébastien de Tramasure, Group Chief Financial Officer
Group Chief Human Resources Officer (to be appointed)

A full presentation of the Global Executive Team members is available on the Group’s website.

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Outlook

The first half reflects both ongoing execution challenges and management actions. While these actions weigh on near-term performance, they are intended to rebuild a powerful growth engine and restore competitiveness at scale.

For Fiscal 2026, Sodexo now expects:

Organic revenue growth between +0.5% and +1% (prev. +1.5% to +2.5%). The adjustment reflects weaker first‑half commercial momentum, as well as lower volumes expected in an uncertain external environment.
Underlying operating profit margin between 3.2% and 3.4% (prev. "slightly lower than Fiscal 2025"), reflecting softer top-line growth, execution challenges in certain areas, acceleration of investments to strengthen execution, and the impact of the review of contracts and assets.

In addition, reflecting the level of Other operating income and expenses already recorded in the first half, and based on the ongoing review of contracts and assets, Sodexo now expects Other operating income and expenses in Fiscal 2026 to amount to around -300 million euros.

Sodexo will present its execution agenda and medium‑term ambitions at its Investor update on July 16, 2026, in Paris.

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Conference call

Sodexo will hold a conference call (in English) today at 9:00 a.m. (Paris time), 8:00 a.m. (London time) to comment on its First half Fiscal 2026 results.

Those who wish to connect:

From the UK: +44 121 281 8004, or
From France: +33 1 70 91 87 04, or
From the US: +1 718 705 8796,

Followed by the access code 07 26 13.

The live audio webcast will be available on www.sodexo.com

The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Newsroom” section and the “Investors – Financial Results” section.

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