Compass posts solid Q2 as new business wins climb 16pc
By Iain Gilbert
Date: Tuesday 21 Jul 2026
(Sharecast News) - Food services firm Compass said on Tuesday that it had delivered "another strong quarter", posting 7.1% organic revenue growth as net new business accelerated into its 4-5% target range, which it expects to hit for a fifth straight year.
Compass said client retention stayed high at 96%, with a strong pipeline underpinning confidence in future growth. Like‑for‑like trends were broadly as expected, with North America seeing a modest lift from the Football World Cup, while international growth eased on lower inflation and sports and leisure calendar effects.
The FTSE 100-listed firm said momentum across the $360bn outsourced food services market remained strong. Over the past year, it secured $4.3bn of new business wins, up 16% year‑on‑year, with half coming from first‑time outsourcing.
Compass' business and industry unit remained the standout performer, delivering double‑digit organic growth and more than $2bn of new business, while its international sports and leisure division grew strongly, driven by first‑time outsourcing as venues invest to improve fan experiences.
Education also built momentum after a record selling season, while its healthcare and senior living arm, and its defence, offshore and remote wing both saw continued demand, supported by long‑term sector opportunities.
Compass added that capex was trending around 3.5% of sales, expected to be slightly higher at year‑end due to mobilisation timing. Net M&A spend year‑to‑date stood at $2.4bn.
Looking ahead, Compass reiterated its FY26 guidance, targeting above 11% underlying operating profit growth, driven by around 7% organic revenue growth, roughly 2% profit contribution from M&A, and ongoing margin progression.
As of 0800 BST, Compass shares were down 3.45% at $30.51 each.
Reporting by Iain Gilbert at Sharecast.com
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