Turismo
Sodexo Fiscal 2025 results in line with revised guidance; Fiscal 2026 as a transition year laying foundation for the future
Issy-les-Moulineaux, October 23, 2025
Sodexo (Euronext Paris FR 0000121220-OTC: SDXAY)
At the Board of Directors meeting held on October 22, 2025, chaired by Sophie Bellon, the Board approved the consolidated accounts of Sodexo for the fiscal year ended August 31, 2025.
Fiscal 2025 key figures and highlights
Line labeled “Group Net profit from continuing operations” reflects the presence of discontinued operations in Fiscal 2024. No discontinued contribution in Fiscal 2025.
Sodexo Chairwoman and CEO Sophie Bellon said:
“Over the past four years, we have repositioned Sodexo as a pure-play food and services company. We have streamlined our portfolio, sharpened our focus on core activities, whilst continuing the transformation of our operating model. These efforts have set a strong foundation for sustainable performance.
Our Fiscal 2025 results reflect both the progress achieved and the operational challenges we faced, particularly in the U.S. For Fiscal 2026, we remain laser-focused on addressing these challenges, with clear action plans already underway.
The appointment of Thierry Delaporte as Chief Executive Officer marks the opening of a new chapter for Sodexo, with commercial acceleration and rigorous execution being our key priorities. I am confident that our new governance structure will support the Group’s next stage of development and long-term success.
I want to sincerely thank all Sodexo teams for their dedication and commitment. Their engagement has been essential in driving change and positioning the Group strongly for the future."
Fiscal 2025 highlights
Commercial momentum
Leading the way in sustainability
In Fiscal 2025, Sodexo continued to strengthen its positive impact:
The Group is also publishing its first CSRD-compliant sustainability statement , reinforcing governance and transparency.
Building on this progress, Better Tomorrow 2028 sets a new roadmap to strengthen the Company’s social, environmental and societal impact, thereby contributing to its long-term resilience.
Sodexo Governance
Dissociated governance structure, as of November 10, 2025
Changes in the Board of Directors
The Board will propose several resolutions relative to its composition to strengthen the diversity of its expertise and its knowledge of the North American markets. The following appointments and renewals will be proposed at the Shareholders Meeting on December 16, 2025:
All the resolutions and detailed information on the Board’s composition and governance will be presented in Sodexo’s Universal Registration Document, to be soon filed with the AMF (French financial markets authority).
Outlook
For Fiscal 2026, in line with current operational priorities, Sodexo provides the following outlook:
Excluding the base effect of the Olympics, Rugby World Cup and leap year in Fiscal 2024.
Retention and new signings are based on annualized revenue of contracts gained or lost during the period, irrespective of contract dates.
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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 these Fiscal 2025 Results.
To join the call:
Access Code: 07 26 13
A live audio webcast is also 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.
Sodexo Fiscal 2026 financial calendar
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, Bloomberg France 40, CAC SBT 1.5, FTSE 4 Good and DJSI indices.
Sodexo Key figures
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About Geneviève Bich
A Canadian national, Geneviève is a recognized expert in human resources, with extensive leadership experience across major Canadian companies and board-level responsibilities.
Geneviève is Vice President, Human Resources at Metro Inc., a leader in the food and pharmacy industry in Canada. Prior to joining Metro, Geneviève held similar positions at Aimia Inc., Groupe Dynamite and Bell. She is a member of the Board of Directors of Hydro-Québec, Chair of the Board's Human Resources Committee and a member of the Governance and Customer Experience Committee. She actively supports several community organizations in Montreal. Geneviève is graduated in psychology from McGill University and in law from the Université de Montréal.
She is a member of the Barreau du Québec and the Ordre des conseillers en ressources humaines agréés du Québec .
About Françoise Colpron
A dual U.S. and Canadian national, Françoise is a seasoned corporate director and strategic executive with over 30 years of global legal and business experience, including 25 years in the automotive industry.
She began her career as a lawyer at Ogilvy Renault in Canada and then in Hong Kong. She joined Valeo in 1998, and had several roles, first in the legal department in Paris, then as General Counsel for North and South America, and finally as Group President for North America, from 2008 through 2022. During her tenure, Françoise successfully led the Region during the 2009 economic downturn, through the transformation of the automotive industry in terms of autonomous driving and electrification, as well as the various challenges of Covid and talent and supply shortages. Françoise established strong relationships with automotive customers and local communities, and a strong branding as an employer of choice.
She serves on the Boards of Directors of Sealed Air, Celestica, and Veralto, contributing to governance, human ressources, nominating, audit and compensation committees.
She holds a law degree from the University of Montreal and is fluent in English, French, and Spanish.
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Fiscal 2025 Activity Report
1.1 Fiscal 2025 Performance of Sodexo
1.1.1 Consolidated income statement
(1) ETR based on Pre-tax profit excluding share of profit from Equity method of 892 million euros in Fiscal 2025 and 983 million euros in Fiscal 2024.
(2) Profit attributable to non-controlling interests were 11 million euros in Fiscal 2025 and 9 million euros in Fiscal 2024.
1.1.2 Revenues
Fiscal 2025 consolidated revenues reached 24.1 billion euros, up +1.2% year-on-year, despite a -1.8% negative currency impact (mainly from the U.S. dollar and several Latin American currencies) and a net contribution from acquisitions and disposals of -0.3%. Fiscal 2025 organic revenue growth was +3.3%, or +3.7% excluding the base effect of the Olympics, the Rugby World Cup and leap year in Fiscal 2024, primarily reflecting a contribution from pricing close to 3% and slight positive volume and net new business contribution.
North America delivered +2.8% organic growth, reflecting strong results in Sodexo Live! and Business & Administrations, and solid underlying momentum in Healthcare despite timing effects, offset by contract losses in Education.
In Europe, organic growth was +1.7%, or +2.7% excluding the base effect of the Olympics and the Rugby World Cup, with progress across segments, notably in Healthcare and Seniors.
In Rest of the World, organic growth was +7.5%, primarily driven by India, Australia and Brazil, as Sodexo continues to strengthen its positioning and gain market share. Growth in most other countries remained robust.
North America
(1) During First half Fiscal 2025, some contracts or operations have been reallocated between segments.
Fiscal 2025 North America revenues totaled 11.2 billion euros, up +2.8% organically.
Organic growth in Business & Administrations reached +4.2%, supported by strong food services performance, cross-sales, and price increases, partly offset by contract demobilizations, including the impact of a large global FM contract exit.
Sodexo Live! delivered robust organic growth of +11.2%, fueled by strong activity in airport lounges, conference centers, stadiums and arenas.
Healthcare & Seniors organic growth was +1.8%, supported by price increases, volume growth, and cross-sales. Performance was affected by site losses in Canada and in Seniors, as well as by a slow ramp-up of new business in U.S. Healthcare, with new contracts beginning to contribute in the fourth quarter.
In Education , organic growth was -1.1%, with performance impacted by prior-period contract exits.
Europe
(1) During First half Fiscal 2025, some contracts or operations have been reallocated between segments
Fiscal 2025 Europe revenues totaled 8.6 billion euros, up +1.7% organically, or +2.7% excluding the base effect of the Olympics and the Rugby World Cup.
In Business & Administrations , organic growth was +1.2%, supported by price revisions and new site openings, though partially offset by softer activity levels in FM and the impact of some contract exits.
Sodexo Live! organic growth came in at -6.2%, or +5.1% excluding the base effect of the Olympics and the Rugby World Cup, reflecting strong tourist activity in France and robust volume growth in airport lounges and stadiums in the UK.
Healthcare & Seniors organic growth stood at +6.7%, driven by strong commercial momentum across the zone as well as sustained volume growth and price revisions.
In Education, organic revenue growth was +1.3%, reflecting the positive impact of price revisions, partly offset by the exit of some low-performing contracts in France.
Rest of the World
(1) During First half Fiscal 2025, some contracts or operations have been reallocated between segments
Fiscal 2025 Rest of the World revenues were 4.3 billion euros. Organic growth was +7.5%, underpinned by strong activity levels across most geographies, supported by price increases and solid commercial momentum. Performance was particularly strong in India, fueled by new business wins and higher volumes on existing sites, in Australia, supported by additional volumes and robust development, and in Brazil, driven by price revisions and sustained volume growth.
1.1.3 Underlying Operating Profit
Fiscal 2025 underlying operating profit was 1.1 billion euros, up +2.7%, or +5.0% excluding currency effects. The underlying operating profit margin, including corporate expenses, reached 4.7%, up +10 basis points at constant currencies.
1.1.4 Net profit
Other operating income and expenses amounted to -154 million euros, versus -58 million euros last year (which included a one-off gain on the disposal of the Homecare business). Of this, -97 million euros relate to restructuring, aimed at improving efficiency, productivity, and margins, and covering initiatives such as Global Business Services, ERP implementation, and other organizational optimizations.
As a result, the operating profit reached 985 million euros compared to 1,051 million euros in the previous year.
Fiscal 2025 net financial expenses amounted to 88 million euros, up from 63 million euros in Fiscal 2024. The increase primarily reflects lower one-off gains compared with the prior year, including compensatory interest in Brazil and the Sofinsod dividend. The new USD bond issuance had negligible impact this year, with higher coupons offset by increased interest income on cash and a gain on the tender of existing bonds.
The tax charge was 198 million euros, leading to an Effective Tax Rate of 22.2%, reflecting mainly the update of the risk related to Sodexo S.A. tax audit, following the finalization of related procedures during the period, and the recognition of previously unrecognized tax losses in France.
The share of profit of other companies accounted for using the equity method was 12 million euros compared to 13 million euros last year. Profit attributed to non-controlling interests was 11 million euros compared to the previous year amount of 9 million euros.
As a result, Group net profit was 695 million euros, compared to 738 million euros in Fiscal 2024. Underlying net profit, adjusted for other operating income and expenses net of tax, reached 785 million euros, compared to 775 million euros in Fiscal 2024, up +3.7% at constant currencies.
1.2 Consolidated financial position
1.2.1 Cash flows
(1) The difference with the Operating Cash Flow as presented in the consolidated cash flow statement comes from the payment of client investments during the period, presented in this table within Net Capex (within Operating Cash flow in the cash flow statement).
(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).
Free cash flow was 459 million euros compared to 661 million euros in Fiscal 2024.
Operating cash flow amounted to 1.2 billion euros down from 1.3 billion euros in the previous year, mainly due to an exceptional tax outflow related to a tax reassessment at Sodexo S.A..
Change in working capital in Fiscal 2025 was an outflow of 69 million euros, compared with a 43 million euros outflow in the previous year.
Net capital expenditure, including client investments, at 484 million euros, representing 2.0% of revenues, in line with last year.
Acquisitions net of disposals amounted to an outflow of 93 million euros in Fiscal 2025, driven by the acquisitions of CRH Catering in the United States and Agap’Pro, a GPO in France, which were partly offset by some disposals in non-core activities. The prior year inflow of 986 million euros mainly resulted from the disposal of Sofinsod for 918 million euros and the Homecare business.
The Fiscal 2025 dividend payment amounted to 388 million euros. In Fiscal 2024, the dividend payment of 1,373 million euros included the special interim dividend paid in August 2024 for 918 million euros related to the sale of Sofinsod, in addition to the ordinary dividend paid in December 2024 for the previous fiscal year which included Pluxee's contribution.
Increase in net debt for the period amounted to 87 million euros.
1.2.2 Condensed consolidated statement of financial position at August 31, 2025
As of August 31, 2025, net debt stood at 2.7 billion euros, compared with 2.6 billion euros at the end of Fiscal 2024. With EBITDA up 2% year-on-year, the net debt-to-EBITDA ratio stood at 1.8x, versus 1.7x as of August 31, 2024. Gearing rose by 3 points to 71%.
During the fiscal year, the 700 million euros bond maturing in April 2025, carrying a 0.75% coupon, was repaid.
On May 27, 2025, Sodexo Inc. successfully completed a USD 1.1 billion bond issuance in two tranches: USD 600 million maturing in August 2030 (5.15% coupon) and USD 500 million maturing in August 2035 (5.8% coupon). The issuance was nearly 7 times oversubscribed, reflecting strong investor demand. As part of a cash tender offer, a portion of the net proceeds from this bond issuance was used to repurchase USD 172.3 million of the Group's outstanding 2026 notes (1.634% coupon), representing 34.5% of the tranche.
At year-end, the Group's blended costs of debt was 2.7%, compared to 1.8% at the end of Fiscal 2024.
Gross debt totaled 4.8 billion euros, of which 53% denominated in euros, 40% in U.S. dollars and 7% in sterling, with an average maturity of 3.7 years. Debt was 95% fixed-rate and entirely covenant-free.
Operating cash amounted to 2,1 billion euros. Unused credit lines totaled 1.75 billion euros, with a 5-year maturity.
1.2.3 Earnings per share
Earnings per share (EPS) from continuing operations was 4.76 euros compared to 5.04 euros in Fiscal 2024. The weighted average number of shares for Fiscal 2025 was at 146,014,551 compared to 146,451,943 shares for Fiscal 2024. Underlying EPS increased to 5.37 euros compared to the prior year at 5.29 euros.
1.2.4 Proposed dividend
The Board proposes an ordinary dividend of 2.70 euros, in line with the Group policy of a 50% pay-out ratio based on underlying net income.
1.2.5 Currency effect
Exchange rate fluctuations do not generate operational risks, because each subsidiary bills its revenues and incurs its expenses in the same currency.
In Fiscal 2025, revenues were impacted by a -1.8% currency effect, primarily reflecting the depreciation of the U.S. dollar against the euro since the beginning of the year. The weakening of several Latin American currencies, particularly the Brazilian real, also contributed to the negative impact.
As of end of Fiscal 2025, the Group operates in 43 countries. The percentage of total revenues and Underlying operating profit denominated in the main currencies is as follows:
The currency effect is determined by applying the previous year's average exchange rates to the current year figures.
1.2.6 Outlook
For Fiscal 2026, in line with current operational priorities, Sodexo provides the following outlook:
1.2.7 Subsequent events .
No major events have occurred since the closing of Fiscal year 2025.
1.2.8 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
Please refer to Chapter 4, note 4.3.1.
Free cash flow
Please refer to the section entitled Consolidated financial position.
Growth excluding currency effect
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures except in hyper-inflationary economies where all figures are converted at the latest closing rate for both periods when the impact is significant.
For Türkiye, despite being in hyperinflation, the average exchange rates of the previous period are used due to the lack of materiality.
Net debt
Net debt is defined as Group borrowing at the balance sheet date, less operating cash.
Organic growth
Organic growth corresponds to the increase in revenue for a given period (the “current period”) compared to the revenue reported for the same period of the prior fiscal year, calculated using the exchange rate for the prior fiscal year; and excluding the impact of business acquisitions (or gain of control) and divestments, as follows:
Underlying net profit
Underlying net profit presents a net income excluding significant unusual and/or infrequent elements. Therefore, it corresponds to the Net Income Group share excluding Other Income and Expense and significant non-recurring elements in both Net Financial Expense and Income Tax Expense where relevant.
Underlying net profit per share
Underlying net profit per share presents the Underlying net profit divided by the average number of shares.
Underlying operating profit margin
The Underlying operating profit margin corresponds to Underlying operating profit divided by revenues.
Underlying operating profit margin at constant rates
The Underlying operating profit margin at constant rates corresponds to Underlying operating profit divided by revenues, calculated by converting 2025 figures at Fiscal 2024 rates, except for countries with hyperinflationary economies.
Inter-segment restatements
Some contracts or operations have been reallocated between segments, with main impacts in North America between Healthcare Seniors and Business & Administrations.
Restated revenue breakdown for Fiscal 2024:
(1) Since the first half of 2024, the Group has been reporting Sodexo Live! revenue separately; it was previously included in the Business & Administrations segment.
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Fiscal 2025 Condensed consolidated financial statements
Notes to the Financial Statements will be found in the Universal Registration Document to be soon published
2.1 Consolidated income statement
2.2 Consolidated statement of comprehensive income
* Including for Fiscal 2024 the remeasurement at fair value of the financial assets of Pluxee (formerly the Benefits & Rewards Services activity) reclassified as assets held for sale or distribution prior to the spin-off.
2.3 Consolidated statement of financial position
Assets
Shareholders’ equity and liabilities
2.4 Consolidated cash flow statement
(1) Including 197 million euros corresponding to the depreciation of right-of-use assets recognized in Fiscal 2025 in accordance with IFRS 16 (179 million euros recognized in Fiscal 2024).
(2) As from the first half of Fiscal 2025, payments and amortization of client investments are reported separately.
Previously, they were reported as a change in client investments. This change in presentation has been reflected in the comparative information for Fiscal 2024.
(3) As from the first half of Fiscal 2025, interest received and interest paid are reported separately.
Previously, they were reported as net interest expense paid. This change in presentation has been reflected in the comparative information for Fiscal 2024.
2.5 Consolidated statement of changes in shareholders’ equity
2.6 Financial ratios
* Operating cash flow as defined in the activity report in note 3.3 (chapter 3 of URD) for Fiscal 2025 and 2024.
Financial ratios have been calculated based on the following key indicators:
(1)The Group does not believe the accounting treatment introduced by IFRS 16 modifies the operating nature of its leases. 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 with an impact on free cash flow, integrating all lease payments (fixed or variable). As a result, lease liabilities are excluded from borrowings.
(2)Average capital employed between the beginning and the end of the year.
(3)Reinstatement of the capital employed of the entity Denali Universal, LLC in the United States which was reclassified in assets held for sale and related liabilities as of August 31, 2024.
(4) The underlying effective tax rate is calculated as follows:
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