Johnson Service Group announces expected FY2025 performance, targeting a profit margin of 14%

LootboxPhobia · 2026-03-03T10:48:03+00:00

Johnson Service Group PLC announces fiscal year 2025 results, with adjusted EBITA of £72.5 million and revenue of £535.4 million, slightly below expectations. The company’s earnings per share are 12.1 pence, with a 20% dividend increase. Overall growth is still expected in 2026.

LootboxPhobia

2026-03-03 10:48:03

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Investing.com - Johnson Service Group PLC (LSE:JSG) announced on Tuesday that its full-year results for fiscal 2025 met analyst expectations, with adjusted EBITA of £72.5 million, compared to the forecast of £72.1 million.

The company’s revenue was £535.4 million, slightly below the expected £535.6 million, which was disclosed in the January trading update.

Organic growth reached 1.4%, with workwear division growing by 2.4% and HORECA division increasing by 1.0%. Workwear customer retention remained steady at 94%.

Adjusted earnings per share were 12.1 pence, versus the expected 12.0 pence. The company increased its dividend by 20% to 4.8 pence per share, in line with analyst expectations.

The adjusted EBITA margin expanded from 12.1% in 2024 to 13.5%, an increase of 140 basis points.

Labor costs as a percentage of revenue rose from 44.6% in 2024 to 46.0%, an increase of 140 basis points, while energy costs as a percentage of revenue decreased from 8.8% last year to 7.4%, down by 160 basis points.

Johnson Service Group has hedged 90% of its electricity needs and 95% of natural gas needs for the first half of 2026, with hedge ratios for the second half at 75% and 85%, respectively.

The company recorded a one-time cost of £6 million, mainly related to £1.7 million in market movements and £3.4 million in restructuring expenses.

Free cash flow reached £69 million, with year-end bank net debt at £114 million, and a leverage ratio of 0.95x. The board stated it will continue to seek organic and inorganic investment opportunities and actively review share repurchase programs throughout 2026.

The company did not announce any new buyback plans.

For 2026, despite regional and industry sales variations within the HORECA sector, the company expects to achieve overall group growth.

The board confirmed that, despite current economic uncertainties and rising labor and site costs impacting some customers, the company remains confident in achieving an adjusted operating profit margin of at least 14.0% in 2026.

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