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.
First half Fiscal 2026 key figures
(in million euros)
H1 FISCAL 2026
H1 FISCAL 2025
CHANGE
CHANGE AT CONSTANT CURRENCIES
Revenues
12,017
12,475
(3.7%)
+1.6%
Organic revenue growth
+1.7%
+3.5%
UNDERLYING OPERATING PROFIT
442
651
(32.1%)
(26.5%)
UNDERLYING OPERATING PROFIT MARGIN
3.7%
5.2%
-150bps
-140bps
Other operating income & expenses
(130)
(71)
OPERATING PROFIT
312
580
(46.2%)
(42.9%)
Net financial expense
(64)
(40)
Tax charge
(64)
(105)
Effective tax rate(1)
25.9%
19.5%
GROUP NET PROFIT(2)
188
434
(56.7%)
(54.1%)
Basic EPS (in euros)
1.29
2.98
GROUP UNDERLYING NET PROFIT
285
450
(36.7%)
(31.3%)
Basic underlying EPS (in euros)
1.96
3.08
(36.5%)
(1) ETR based on pre-tax profit excluding share of profit from equity method of 246 million euros in First half Fiscal 2026 and 537 millions euros in First half Fiscal 2025.(2) Profit attributable to non-controlling interests were a negative 1 million euros in First half Fiscal 2026 and a positive 5 million euros in First half Fiscal 2025.
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 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."
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.
Commercial activity1
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 2025.1 Retention and new signings are based on annualized revenue of contracts gained or lost during the period, irrespective of contract dates.
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.
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.
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.
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.
Financial calendar
Fiscal 2026 Third quarter Revenues
July 2, 2026
Investor Update (Paris)
July 16, 2026
Fiscal 2026 Annual Results
October 23, 2026
Fiscal 2026 Annual Shareholders Meeting
December 16, 2026
These dates are indicative and may be subject to change without notice.Regular updates are available in the calendar on our website www.sodexo.com
About Sodexo
Founded in Marseille in 1966 by Pierre Bellon, Sodexo is the leader in Food and Services, shaping better everyday experiences at every moment in life: work, heal, learn and play. The Group stands out for its independence, its founding family shareholding and its responsible business model. With its services, Sodexo meets all the challenges of everyday life with a dual goal: to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental progress in the communities where we operate. For Sodexo, growth and social commitment go hand in hand. Our purpose is to create a better everyday for everyone to build a better life for all. Sodexo is included in the CAC Next 20, CAC SBT 1.5, FTSE 4 Good and DJSI indices.
Key figures
24.1 billion euros Fiscal 2025 consolidated revenues
43 countries (as at August 31, 2025)
426,000 employees (as at August 31, 2025)
80 million consumers served daily
#2 France-based private employer worldwide
6.5 billion euros in market capitalization (as at April 9, 2026)
Contacts
Analysts and Investors
Media
Juliette Klein+33 1 57 75 80 27 [email protected]
Mathieu Scaravetti +33 6 28 62 21 91 [email protected]
1. First half Fiscal 2026 Financial Report
1.1 H1 Fiscal 2026 performance
1.1.1 Consolidated income statement
(in million euros)
H1 FISCAL 2026
H1 FISCAL 2025
CHANGE
CHANGE AT CONSTANT CURRENCIES
Revenues
12,017
12,475
(3.7%)
+1.6%
Organic Growth
+1.7%
+3.5%
UNDERLYING OPERATING PROFIT
442
651
(32.1%)
(26.5%)
UNDERLYING OPERATING PROFIT MARGIN
3.7%
5.2%
-150 bps
-140 bps
Other operating income & expenses
(130)
(71)
OPERATING PROFIT
312
580
(46.2%)
(42.9%)
Net financial expense
(64)
(40)
Tax charge
(64)
(105)
Effective tax rate(1)
25.9%
19.5%
GROUP NET PROFIT(2)
188
434
(56.7%)
(54.1%)
Basic EPS (in euros)
1.29
2.98
GROUP UNDERLYING NET PROFIT
285
450
(36.7%)
(31.3%)
Basic underlying EPS (in euros)
1.96
3.08
(36.5%)
(1) ETR based on Pre-tax profit excluding share of profit from equity method of 246 million euros in First half Fiscal 2026 and 537 millions euros in First half Fiscal 2025.(2) Profit attributable to non-controlling interests were a negative 1 million euros in First half Fiscal 2026 and a positive 5 million euros in First half Fiscal 2025.
1.1.2 Revenues
Revenues by geography
REVENUES(in million euros)
H1 FISCAL 2026
H1 FISCAL 2025
ORGANIC GROWTH
EXTERNAL GROWTH
CURRENCY EFFECT
TOTAL GROWTH
North America
5,395
5,977
-1.8%
+0.5%
-8.4%
-9.7%
Europe
4,418
4,336
+2.8%
+0.2%
-1.1%
+1.9%
Rest of the World
2,204
2,162
+9.2%
-2.1%
-5.2%
+1.9%
GROUP TOTAL
12,017
12,475
+1.7%
-0.1%
-5.3%
-3.7%
First half Fiscal 2026 revenues totaled 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 annualized 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 is summarized below.
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.
The tables below provide a detailed breakdown of organic growth by segment within each geographic zone.
North America
REVENUES BY SEGMENT(in million euros)
H1 FY 2026
H1 FY 2025
ORGANIC GROWTH
Business & Administrations
1,263
1,488
-9.3%
Sodexo Live!
723
788
+0.3%
Healthcare & Seniors
1,731
1,783
+6.1%
Education
1,678
1,918
-4.3%
NORTH AMERICA TOTAL
5,395
5,977
-1.8%
Europe
REVENUES BY SEGMENT(in million euros)
H1 FY 2026
H1 FY 2025
ORGANIC GROWTH
Business & Administrations
2,433
2,390
+2.8%
Sodexo Live!
311
319
+1.1%
Healthcare & Seniors
1,035
979
+6.4%
Education
639
648
-1.6%
EUROPE TOTAL
4,418
4,336
+2.8%
Rest of the World
REVENUES BY SEGMENT(in million euros)
H1 FY 2026
H1 FY 2025
ORGANIC GROWTH
Business & Administrations
1,900
1,863
+9.1%
Sodexo Live!
29
26
+20.3%
Healthcare & Seniors
178
173
+11.5%
Education
97
100
+4.6%
REST OF THE WORLD TOTAL
2,204
2,162
+9.2%
1.1.3 Underlying operating profit
First half Fiscal 2026 underlying operating profit was 442 million euros, down -32.1% year-on-year. The underlying operating margin declined by -140 bps at constant currencies to 3.7%. This decline primarily reflects operational challenges and mix effects, lower operating leverage linked to softer growth dynamics, and the acceleration of investments aimed at strengthening execution capabilities. It also reflects the outcomes of the Group's review of contracts and assets, including specific contract‑related provisions, based on actual performance and updated assumptions in the current market environment.
By geography, the decline in underlying operating profit margin was more pronounced in North America, where margin decreased by approximately -200 bps at constant currencies to 5.0%. This reflects a higher concentration of operational execution challenges, accelerated investments, and the impact of the contract and asset review in the region.
In Europe, underlying operating profit margin decreased by -90 bps at constant currencies to 3.3%, while in Rest of the World it declined by around -60 bps at constant currencies, also to 3.3%. In both regions, the margin evolution mainly reflects the impact of management actions related to the contract and asset review, while underlying operational performance remained broadly stable.
(in million euros)
UNDERLYING OPERATING PROFIT H1 FISCAL 2026
CHANGE
CHANGE (EXCLUDING CURRENCY EFFECT)
UNDERLYING OPERATING PROFIT MARGIN H1 FISCAL 2026
CHANGE IN MARGIN
CHANGE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT)
North America
268
-36.5%
-29.3%
5.0%
-210 bps
-200 bps
Europe
147
-21.0%
-20.2%
3.3%
-100 bps
-90 bps
Rest of the World
72
-15.3%
-9.8%
3.3%
-60 bps
-60 bps
Corporate expenses / HQ Costs
(45)
+7.1%
+7.1%
UNDERLYING OPERATING PROFIT
442
-32.1%
-26.5%
3.7%
-150 bps
-140 bps
1.1.4 Net profit
(in million euros)
H1 FISCAL 2026
H1 FISCAL 2025
UNDERLYING OPERATING PROFIT
442
651
Net impact related to consolidation scope changes
6
(5)
Restructuring and rationalization costs
(56)
(41)
Amortization of purchased intangible assets
(17)
(17)
Other
(63)
(8)
OTHER OPERATING INCOME AND EXPENSES
(130)
(71)
OPERATING PROFIT
312
580
Net financial expense
(64)
(40)
Net income before tax & shares accounted for equity method
246
537
Tax charge
(64)
(105)
NET PROFIT (GROUP SHARE)
188
434
UNDERLYING NET PROFIT (GROUP SHARE)
285
450
Other operating income and expenses amounted to a negative 130 million euros, compared to a negative 71 million euros in the prior year, mainly reflecting higher restructuring and rationalization costs linked to organizational changes, leadership adjustments and transformation projects, as well as specific items related to asset and footprint rationalization decisions. Amortization of purchased intangible assets was stable year on year. Other items mainly reflect specific elements relating to asset and footprint rationalization decisions, as well as pension‑related items, driven by a legislative change in labor law in India, as well as the recognition of one‑off costs related to a multi-employer pension plan in the U.S.
As a result, operating profit amounted to 312 million euros, compared to 580 million euros in the first half of the prior year, reflecting lower underlying operating profit and year‑on‑year differences in other operating income and expenses.
Net Financial expenses amounted to 64 million euros, compared to 40 million euros in the prior year, mainly reflecting a higher 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 first half Fiscal 2025 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.
First half Fiscal 2025 Group Net profit was 188 million euros, compared to 434 million euros in the first half of Fiscal 2025. Underlying net profit adjusted for Other Operating income and expenses net of tax amounted to 285 million euros, compared to 450 million euros in the previous year, reflecting lower underlying operating profit and the currency impacts.
1.1.5 Earnings per share
First half Fiscal 2026 EPS was 1.29 euros compared to 2.98 euros for first half Fiscal 2025. The weighted average number of shares for First half Fiscal 2026 was more or less stable at 145,558,459 compared to 145,998,269 shares for First half Fiscal 2025.
Underlying EPS amounted to 1.96 euros, a decrease of -36.5% compared to 3.08 euros in the previous year.
1.2 Consolidated financial position
1.2.1 Cash flows
(in million euros)
H1 FISCAL 2026
H1 FISCAL 2025
Operating cash flow(1)
616
600
Change in working capital
(461)
(491)
IFRS 16 leases outflow
(90)
(87)
Net capital expenditure (including client investments)
(308)
(256)
Free cash flow(2)
(243)
(234)
Net acquisitions
(256)
(72)
Share buy-backs
(33)
(61)
Dividends paid to shareholders
(394)
(388)
Other changes (including scope and exchange rates)
31
(60)
(Increase)/decrease in net debt
(895)
(815)
(1) The difference with the operating cash flow as presented in the consolidated cash flow statement (section 2.1.4) comes from the client investments, presented in this table within net capex (within operating cash flow in the cash flow statement, under "Payment of client investments during the period").(2) The Group does not believe the accounting treatment introduced by IFRS 16 modifies the operating nature of its lease transactions. Accordingly, to ensure the Group's performance measures continue to best reflect its operating performance, the Group considers repayments of lease liabilities as operating items impacting the Free cash flow, which integrates all lease payments (fixed or variable). To be consistent, the lease liabilities are not included in Net debt (treated as operating items).First half Fiscal 2026 operating cash flow amounted to 616 million euros, an increase of 16 million euros year on year. This improvement mainly reflects the absence this year of the exceptional tax outflow related to the Sodexo S.A. tax audit recorded in the prior period, partly offset by lower operating profit.
The change in working capital represented a seasonal outflow of 461 million euros. As a reminder, the end of the first half is a seasonal low point for cash generation, and working capital is expected to normalize significantly by year-end.
Net capital expenditure, including new client investments, increased slightly to 308 million euros, or 2.6% of revenues, mainly reflecting one‑off client investments in the context of contract renewals.
As a result, free cash flow was broadly stable year on year at -243 million euros.
Acquisitions net of disposals amounted to an outflow of 256 million euros, mainly reflecting the acquisition of Grupo Mediterránea, alongside smaller bolt‑on acquisitions in Europe.
The Fiscal 2025 dividend paid in the first half amounted to 394 million euros, compared to 388 million euros in the previous year.
After taking into account other changes, including foreign exchange impacts, consolidated net debt increased by 895 million euros during the first half to reach 3,582 million euros at February 28, 2026.
1.2.2 Condensed consolidated statement of financial position at February 28, 2026
(in million euros)
FEBRUARY 28, 2026
AUGUST 31, 2025
(in million euros)
FEBRUARY 28, 2026
AUGUST 31, 2025
Non-current assets
8,830
8,524
Shareholders' equity
3,599
3,786
Current assets excluding cash
4,794
4,234
Non-controlling interests
10
13
Non-current liabilities
5,330
5,212
Cash and cash equivalent
1,176
2,091
Current liabilities
5,861
5,838
Assets held for sale
—
—
Liabilities held for sale
—
—
TOTAL ASSETS
14,800
14,849
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
14,800
14,849
(in million euros)
FEBRUARY 28, 2026
AUGUST 31, 2025
FEBRUARY 28, 2025
Gross debt
4,757
4,777
4,836
Net debt
3,582
2,687
3,416
Gearing ratio
99%
71%
85%
Net debt ratio (Net debt/EBITDA)
2.7x
1.8x
2.3x
As of February 28, 2026, net debt was 3,582 million euros, up from 2,687 million euros at the end of Fiscal 2025, reflecting the typical seasonality of cash flow with the dividend payment in the first half and seasonal working capital requirements. Given the 13% year-on-year decrease in rolling 12-month EBITDA, the net debt to EBITDA ratio stands at 2.7x, up 0.9x since year-end.
At the end of the first half Fiscal 2026, the average interest rate on the bonds stood at 2.7%, up from 1.8% in the first half of last year, mainly reflecting the issuance of US dollar bonds in May 2025 at higher coupons than the existing debt.
As of February 28, 2026, the Group's gross debt of 4,757 million euros was 55% euro-denominated, 37% U.S. dollar-denominated and 7% sterling-denominated, with an average maturity of 3.2 years, 95% at fixed rates and 100% covenant free.
Operating cash reached a total of 1,175 million euros.
At the end of the First half Fiscal 2026, the Group had unused credit lines totaled 1.75 billion euros, with a 5-year maturity, after a one-year extension in July 2025.
1.2.3 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.
1.2.4 Subsequent events
No major events have occurred since the closing of the period.
1.2.5 Currency effect
Exchange rate fluctuations do not generate operational risk, because each subsidiary bills its revenues and incurs its expenses in the same currency.
1€=
AVERAGE RATEH1 FY 2026
AVERAGE RATEH1 FY 2025
AVERAGE RATEH1 FY 2026VS. H1 FY 2025
CLOSING RATEAT 02/28/26
CLOSING RATEAT 08/31/25
CLOSING RATE02/28/2026VS. 08/31/2025
U.S. dollar (USD)
1.171
1.070
-8.6%
1.181
1.166
-1.2%
Pound Sterling (GBP)
0.873
0.834
-4.5%
0.876
0.867
-1.1%
Brazilian real (BRL)
6.260
6.240
-0.3%
6.086
6.325
+3.9%
The negative foreign exchange effect of ‑5.3% in the first half of fiscal 2026 primarily reflects the depreciation of the U.S. dollar, and to a lesser extent the depreciation of other currencies, including the British pound and several APAC currencies.
The percentage of total revenues and underlying operating profit denominated in the main currencies is:
H1 FISCAL 2026
% OF REVENUES
% OF UNDERLYINGOPERATING PROFIT
U.S. dollar (USD)
43%
66%
Euro (EUR)
23%
1%
Pound Sterling (GBP)
9%
6%
Brazilian real (BRL)
4%
7%
The currency effect is determined by applying the previous year's average exchange rates to the current year figures.
1.2.6 Alternative performance measure definitions
Blended cost of debt
The blended cost of debt is calculated at period end and is the weighted blended financing rate on borrowings (including derivative financial instruments and commercial papers) and cash pooling balances at period end.
Financial ratios definition
FIRST HALF FISCAL 2026
FIRST HALF FISCAL 2025
Gearing ratio
Gross borrowings (a), operating cash (b)
99%
85%
Shareholders' equity and non-controlling interests
Net debt ratio
Borrowings (a), operating cash (b)
2.7x
2.3x
Rolling 12-month (Underlying) EBITDA (c)
Financial ratios reconciliation
FIRST HALF FISCAL 2026
FIRST HALF FISCAL 2025
(a) Borrowings
Long-term borrowings
3,943
4,091
+ Short-term borrowings
818
748
- Derivative financial instruments recognized as assets
(4)
(3)
BORROWINGS
4,757
4,836
(b) Operating cash
Cash and cash equivalents
1,176
1,423
Bank overdrafts
(1)
(3)
OPERATING CASH
1,175
1,420
(c) Rolling 12-month (Underlying) EBITDA(1)
Underlying operating profit (RTM)
930
1,149
+ Depreciation and amortization (RTM)
468
432
