Overview

• UK food services provider's H1 adjusted revenue rose 9%, slightly beating analyst expectations

• Adjusted operating profit up 12% yr/yr; underlying margin improved to 7.4%

• Company raised full-year profit guidance, citing strong new business wins and margin progression

Outlook

• Compass Group raises 2026 underlying operating profit growth guidance to above 11%

• Company expects organic revenue growth around 7% and ongoing margin progression in 2026

• Leverage expected to remain above target range in 2026 due to M&A activity

Result Drivers

• NEW BUSINESS WINS - Co said organic revenue growth was driven by mobilised net new business growth of 3.8%, with new business wins up 14% to $4.1bln, including a large share from first-time outsourcing

• MARGIN IMPROVEMENT - Underlying operating margin rose 20bps to 7.4%, benefiting from operating leverage and synergies from recent acquisitions

• ACQUISITIONS - Recent acquisitions, notably Vermaat in the Netherlands and Pro Care Management in Germany, contributed to growth and strengthened the European platform

Company press release: ID:nRSK7603Da

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
H1 Revenue		$25 bln
H1 Adjusted Revenue	Slight Beat*	$25 bln	$24.89 bln (3 Analysts)
H1 Adjusted Operating Profit	Beat	$1.84 bln	$1.81 bln (2 Analysts)
H1 Adjusted Operating Margin		7.40%
H1 Operating Profit		$1.61 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

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