IWG posts record H1 revenues as operating profits fall 44pc

11th Aug 2026 10:02

(Sharecast News) - Hybrid workspace provider IWG reported increased first‑half revenues on Tuesday but said operating profits had fallen sharply, with increased overheads and investment weighing on earnings despite continued network expansion.

IWG said group revenue had risen 6% year‑on‑year to a record $2.0bn, driven by strong system‑wide growth of 11% to $2.4bn and further expansion across its managed and franchised network. Recurring management fee income jumped 84% to $35m, while company‑owned revenue grew 5% to $1.9bn.

However, operating profits dropped 44% to $38m, reflecting higher investment in sales, marketing and operational capability, while net debt increased to $880m, reflecting investment, acquisitions and buybacks, though Q2 cash generation helped stabilise the group's overall position.

IWG said managed and franchised revenue climbed 36% to $535m, with fee income up 60% and signings accelerating to 711. Company‑owned revenue per available room rose 11% to $407, supported by maintained occupancy and higher pricing.

The FTSE 250-listed group continued to scale its network in the half, signing 728 centres in H1 and opening 425. Cashflow before corporate activities improved to $36m in Q2 after a weaker first quarter.

IWG also highlighted that it had returned $109m to shareholders through dividends and buybacks, with $150m of repurchases announced so far in 2026, while it also declared an interim dividend of 0.48c per share.

Looking ahead, IWG reiterated its FY26 guidance, including adjusted underlying earnings of $585m to $625m, company‑owned revenue growth of at least 4%, and $80m of recurring management fees. It also reaffirmed its medium‑term target of $1bn in adjusted EBITDA.

As of 1000 BST, IWG shares had slumped 10.02% to 167.10p.

Reporting by Iain Gilbert at Sharecast.com

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