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Highlights

  • System-wide revenue reached a record USD 2.2 billion, a 2% year-on-year increase.

  • Adjusted EBITDA rose 6% to USD 262 million in H1 2025.

  • USD 59 million returned to shareholders since March 2025 through dividends and buybacks.

International Workplace Group plc (LSE:IWG), the global flexible workspace operator with a presence in more than 120 countries, announced its financial results for the six months ended 30 June 2025. The Group delivered its highest-ever system-wide revenue, expanded operating cashflows, and confirmed an increase in capital returns to shareholders.

Revenue and Operating Performance

System-wide revenue for H1 2025 stood at USD 2.2 billion, compared with USD 2.1 billion in H1 2024, representing 2% year-on-year growth. Recurring management fee revenue grew by 2.6 times compared with the prior year.

The company reported an increase of 116 basis points in underlying company-owned adjusted gross margin. Revenue in the Digital & Professional Services segment rose 6% year-on-year, with the business positioned for further delivery in 2026. Core overheads remained flat, indicating operational leverage while continuing to invest in growth initiatives.

Profitability and Balance Sheet

Adjusted EBITDA for the Group was reported at USD 262 million, up 6% from USD 247 million in H1 2024. The balance sheet remains supported by no refinancing requirements until 2029, with leverage stable at 1.5x net debt to EBITDA.

Since March 2025, the company has returned USD 59 million of capital to shareholders through dividends and share repurchases. This level of capital return was 3.5 times higher than the aggregate amount distributed during the previous five years.

Cashflow for FY 2025 is now expected to increase by 40% to at least USD 140 million. Alongside this, the Group announced an expansion of its share buyback programme to at least USD 130 million for FY 2025. The company has also declared an interim dividend of USD 0.0045 (0.45 cents) per share.

Guidance and Outlook

International Workplace Group reaffirmed its full-year 2025 guidance, initially provided with its US GAAP financial results in June. Adjusted EBITDA for FY 2025 is projected at USD 525–565 million, with expectations towards the lower end of the range due to further investment in Managed and Franchise segment growth.

The company reiterated that net debt is expected to remain broadly unchanged compared with 31 December 2024. Management also confirmed its commitment to maintaining a BBB credit rating and reducing leverage towards 1.0x net debt to Adjusted EBITDA over the medium term.

For the full year, capital returns to shareholders are projected at no less than USD 140 million, a 40% increase on the guidance provided in March. The Group also reaffirmed its medium-term target of achieving at least USD 1 billion in EBITDA.

Financial Calendar

  • 19 September 2025 – Interim dividend record date

  • 17 October 2025 – Interim dividend payment date

  • 4 November 2025 – Q3 2025 trading update