FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
First half Fiscal 2026 revenues for global food services and facilities management business Sodexo Group totalled 12.0 billion euros, down -3.7% year-on-year with a negative foreign exchange effect of -5.3%, mainly driven by the US dollar, a net contribution from acquisitions and disposals of -0.1%, and organic revenue growth of +1.7%.
Organic revenue growth was driven by pricing of around +2.4% and like-for-like volumes growth of around +0.2%, supported by cross-selling in US Healthcare, despite a strong comparable in Sodexo Live! in the first half of the prior year.
This was partly offset by negative net new business of 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 & Administration, following the renegotiation and renewal of a contract moving from gross to net revenue recognition. The annualised impact of this reclassification is estimated at around -100 basis points at Group level and will therefore show a greater impact in the second half.
Food Services delivered organic growth of +0.8%, impacted by prior contract losses in Education. Facilities Management Services grew organically by +3.6%, supported by the ramp-up of new contracts, particularly in Europe and Rest of the World.
Organic growth by geography in the first half of Fiscal 2026:
- North America reported organic growth of -1.8%, mainly reflecting contract losses in Education and Business & Administration and, to a lesser extent, changes in scope on certain contracts, alongside the one-off contract reclassification effect. Healthcare and Seniors continued to deliver strong growth driven by new contracts, while Sodexo Live! was softer due to strong prior-year comparables.
- Europe delivered organic growth of +2.8%, supported by Healthcare & Seniors and strong Sodexo Live! activity, while Education remained softer.
- Rest of the World recorded organic growth of +9.2%, driven by new contract ramp-ups and strong underlying dynamics notably in India, Australia and Brazil.
Looking ahead 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.
Commenting on the results, Thierry Delaporte, Chief Executive Officer of Sodexo, said: “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 organisational structure in order to accelerate decision-making and raise accountability standards. The entire Sodexo organisation is shifting gears, and we are seeing early positive signals.”
Jean Renton, Sodexo UK&I CEO, said: “Thierry Delaporte, Group CEO, presented the Group first half fiscal 2026 results to the market, sharing his view on where we stand and how we move forward. In the UK & Ireland we are totally committed and progressing in this way with our ambition to increase market share of the company.
“Across our business, we are seeing the benefit of our focus on delivering food and support services, combining the strength of our integrated offer with an emphasis on quality, innovation and client partnership.
“Our teams are proud to have secured several important new contracts and extensions, reflecting the trust our clients place in us and the value we deliver every day. From our appointment as a strategic partner to the Home Office to new partnerships with organisations such as EY in Ireland, Edinburgh Zoo, and continued long-term relationships with clients including the Scottish Parliament, Leyland Trucks, the Royal Academy of Arts, and additional services for ESB in Ireland, these wins demonstrate the breadth of our capabilities.
“As we celebrate our 60th year, we are reinvigorating our approach to serve clients, underpinned by continued investment in technology and digital capability to enhance the consumer experience.
“In the region, we continue to deliver on sustainability goals – focusing on supporting environmental food systems, improving food security and energy efficiency that delivers commercial value and operational efficiency for our clients. Our latest net zero progress report highlights our market leading progress to decarbonise our business by combining data, expertise, commitment, and action across our business.
“We are also proud to mark the 20th anniversary of our Stop Hunger Foundation, which has supported more than 11 million people, raised over £10 million, and benefited 470 charities, reflecting the place-based impact we continue to make in communities across the UK and Ireland.
“None of this would be possible without our colleagues. Their dedication, expertise and passion are what set Sodexo apart, and I would like to thank all our teams for the impact they deliver every day for our clients and in driving our business forward.
“Looking ahead to the second half of the year, we remain focused on driving performance and long-term value across our business.”
FMJ and Watco Webinar: Meeting compliance in a new culture of accountability
From January 2026, the Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE). Created under the Building Safety Act 2022 in response to the Grenfell Tower tragedy, the BSR is designed to raise safety standards across the built environment and introduce a stronger culture of accountability, transparency, and proactive risk management.
This shift places facilities managers in a more strategic safety assurance role – far beyond routine maintenance.
FMJ and Watco are hosting a webinar on 22 April at 11:00am to explore what this new regulatory landscape means for FMs. To register for the webinar click here.
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