IWG (LSE:IWG) shares rose 3.3% after the flexible workspace provider announced a US$50 million increase to its 2026 share buyback programme, taking the total authorised repurchase amount to US$150 million.
Buyback expansion reflects stronger cash generation
The enlarged buyback programme follows the return of US$130 million to shareholders through share repurchases during 2025. Management said the company’s capital-light growth strategy continues to improve free cash flow generation, creating additional capacity to return capital to investors while supporting future business expansion.
Analysts see valuation upside
Commenting on the announcement, analysts at Stifel said, “We view the current valuation (FY26E EV/EBITDA of 5.1x) as relatively undemanding given the shift to capital-light growth and potential for ongoing shareholder returns.”
Market observers noted that an increase in the buyback programme had been widely anticipated, reflecting confidence in IWG’s improving cash generation and capital allocation strategy.
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