Compass Group (LSE:CPG) reported a strong start to its financial year, delivering 7.3% organic revenue growth in the first quarter to 31 December 2025. The performance was driven by solid contributions from both North American and international operations, with the Sports & Leisure and Business & Industry segments continuing to lead growth. Net new business expansion remained within the company’s targeted 4–5% range, supported by client retention levels exceeding 96%.
During the quarter, Compass completed the $1.7 billion acquisition of Dutch food services provider Vermaat, strengthening its presence and operational expertise across several European markets. The group also deployed a total of $1.9 billion in merger and acquisition activity over the period, reflecting its continued focus on expansion through strategic investments.
Compass further announced that it will change the trading currency of its London-listed shares from sterling to US dollars starting 1 April 2026. The shift is intended to align the listing currency with the group’s reporting currency and reduce the impact of foreign exchange movements on share price volatility.
The company reaffirmed its guidance for 2026, targeting approximately 10% underlying operating profit growth. This is expected to be supported by continued organic business expansion, contributions from recent acquisitions and ongoing margin improvement initiatives.
Compass Group’s outlook remains supported by strong financial performance and positive operational momentum, although technical trading indicators suggest weaker share price momentum. Valuation metrics indicate the shares are relatively highly priced, while conservative long-term growth projections and the potential for increased leverage present additional considerations for investors.
More about Compass Group PLC
Compass Group PLC is a global provider of contract food services and support services across a wide range of sectors, including Business & Industry and Sports & Leisure. The company has a significant presence in North America and international markets and is expanding its footprint across Europe, particularly in countries such as the Netherlands, France and Germany, supported by targeted acquisitions and a growing focus on technology-sector clients.
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