EarningsQ2 2026 Earnings Report
JSVGF Q2 2026 EPS Results
Actual EPS$0.07
Consensus EPS―
Beat/Miss―
One Year Ago EPS$0.06
JSVGF Q2 2026 Revenue Results
Actual Revenue$347.95M
Expected Revenue$349.75M
Beat/MissMissed by -$1.80M
YoY Revenue Growth+0.19%
Earnings Announcement Details
QuarterQ2 2026
Date09/08/2026
TimeBefore Open
Conference CallTuesday, September 8, 2026
JSVGF Upcoming Earnings
Johnson Service's next earnings date is estimated for March 9, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. The group delivered modest revenue growth, stronger operating profit, margin expansion, EPS growth, a higher dividend and continued progress on share buybacks. Workwear performed well, HORECA remained profitable despite lower volumes, and management maintained its adjusted operating margin target of at least 14% for 2026. The main challenges were HORECA's softer trading environment, labor cost inflation, higher interest expense and uncertainty around 2027 energy exposure.Company Guidance
Resilient Group Revenue and Profit Growth
First-half group revenue increased by 0.2% to GBP 258 million, while adjusted operating profit increased by 3.8% to GBP 29.8 million. The group stated that customer price increases and contract acquisitions more than offset lower HORECA volumes.
Improved Operating Margin and EPS
Adjusted operating margin increased by 50 basis points to 11.6%, supported by operational efficiencies, customer price increases and disciplined cost management. Earnings per share increased by 8.7% to 5 pence.
Dividend Increase
The board declared an interim dividend of 1.8 pence per share, an increase of 12.5%. The company expects to maintain a full-year dividend cover of 2.5 times.
Workwear Revenue and Retention Growth
Workwear revenue increased by 2.6% organically to GBP 74 million, reflecting stable customer volumes and price increases. Customer retention remained excellent at 94%, supported by on-time and in-full service.
Workwear Profit and Margin Improvement
Workwear adjusted operating profit increased by almost 6% to GBP 11 million, while operating margin improved by 50 basis points to 14.9%. Lower energy costs, operational efficiencies and disciplined cost management supported the improvement.
HORECA Profitability Resilience
Despite softer HORECA volumes and a challenging market backdrop, adjusted operating profit increased by 4% to GBP 23.4 million. Lower energy costs, operational efficiencies and recent capital investment programs helped adjusted operating margin increase by 60 basis points to 12.7%.
Energy Cost Reduction and Hedging Progress
Group energy costs reduced to 7% of revenue from 7.8% in the first half of 2025, with a further modest reduction expected in the second half. For 2026, approximately 90% of gas, 85% of electricity and 70% of diesel requirements were fixed or hedged; for 2027, approximately 70% of gas, 60% of electricity and 20% of diesel were already secured.
Operating Margin Target Maintained
The company remains on track to achieve its targeted adjusted operating margin of at least 14% in 2026. Management expects labor costs as a percentage of revenue to moderate in the second half and trend toward the 2025 level of around 46%, while energy costs are expected to reduce modestly as a percentage of revenue.
Strong Cash Generation and Capital Flexibility
The group stated that it continues to generate strong levels of cash, providing flexibility to invest across the estate, pursue acquisition opportunities and return capital to shareholders.
Share Buyback Progress and Shareholder Returns
The GBP 55 million share buyback program was more than 50% executed by the end of August and is expected to be mostly completed by the end of 2026. Since 2022, the company stated that it has returned approximately GBP 120 million to shareholders through buybacks, with almost 20% of issued share capital repurchased and canceled; total shareholder returns since 2022 were also stated as GBP 118.5 million.
Leverage and Balance Sheet Position
Net debt was GBP 188.6 million at the half-year end, with leverage at the lower end of the target range at 1.1 times. The medium-term leverage target remains 1 to 1.5 times, and management stated that the group continues to maintain a robust balance sheet.
Refinanced Revolving Credit Facility
In April 2026, the revolving credit facility was increased from GBP 135 million to GBP 175 million, with a further GBP 50 million accordion available subject to lender consent. The facility matures in April 2030, includes an option to extend for a further year, and provides sufficient liquidity for current commitments and plans. The facility margin reduced by 15 basis points to a range of 1.3%-2.3%.
Working Capital and Investment Levels
Working capital was broadly in line with expectations, with debtor days improving slightly to 43 days. Rental stock depreciation was approximately GBP 31 million in the first half, rental stock investment remained at broadly similar levels, and property, plant and equipment capital expenditure was GBP 17.4 million, described as normalized investment across the estate.
Targeted Productivity and Automation Investment
The company deployed GBP 17.4 million in strategic investment during the first half, including automation in dryers and sort systems, boiler efficiencies, and logistics and fleet initiatives. Workwear CapEx was directed toward productivity, efficiency and automation, while HORECA investment was intended to drive long-term operational gains.
New HORECA Contract Wins
The company successfully added annualized revenue of over GBP 5 million from customer contracts to the HORECA division.
Sustainability Progress
Scope 1 and 2 carbon emissions decreased by 14%, water intensity decreased by 20%, 94% of waste was diverted from landfill, and 54% of purchased textiles were derived from sustainable content. The company published its fifth sustainability report in June.
Pension Surplus and Tax Rate
The surplus on the defined benefit pension scheme increased to GBP 7.6 million at June 2026, with no deficit contributions expected in the next 12 months. The underlying tax rate was 24.5%, slightly below the U.K. tax rate of 25%, partly due to the 12.5% rate in the Republic of Ireland.
Long-Term Growth and Capital Allocation Framework
Management highlighted significant opportunities for organic growth and M&A across adjacent verticals in the U.K. and Ireland. Over an extended period, the company stated that it had invested approximately GBP 260 million in the estate, GBP 280 million in value-enhancing acquisitions, returned GBP 105 million through dividends and more recently returned GBP 120 million through share buybacks.
Positive Workwear Outlook
Workwear continues to perform encouragingly, supported by stable volumes and execution of the pricing strategy. Management also cited multiple contract renewals and wins as evidence of the ongoing value customers place on the division's service performance.
JSVGF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed