French food caterer Sodexo has posted an underlying net profit of €785m ($913.82m) for the year ended 31 August 2025 - a 3.7% increase at constant exchange rates.

Its underlying earnings per share (EPS) were €5.37 in fiscal 2025.

Underlying operating margin improved to 4.7%, up 10 basis points on a constant-currency basis.

Savings from procurement and advantages delivered by the Global Business Services programme underpinned the margin increase and partially counterbalanced ongoing growth-related investments.

At constant exchange rates, Europe and the rest of the world recorded margin expansion, while they were unchanged in North America.

Consolidated revenues for the year were €24.1bn - a 1.2% increase from the previous year.

Organic expansion of 3.3% was partly offset by a -1.8% currency headwind and a -0.3% net effect from acquisitions and disposals.

Other operating income and expenses stood at -€154m, largely driven by restructuring costs and the amortisation of acquired intangible assets.

The previous year benefited from a one-off gain related to the sale of the homecare business.

Free cash flow was €459m and incorporated an exceptional tax outflow tied to the finalisation of a tax audit.

Working capital was reported as well-contained, and capital expenditure amounted to 2% of revenue.

Net debt edged up to €2.7bn from €2.6bn a year earlier, primarily reflecting the exceptional tax outflow.

The company’s governance will change with Thierry Delaporte's appointment as CEO, effective from 10 November 2025.

Looking ahead to fiscal 2026, Sodexo anticipates the underlying operating profit margin to be slightly below the level seen in fiscal 2025.

The group projects organic revenue growth of 1.5–2.5%, supported by a minimum 2% contribution from pricing and with like‑for‑like volumes and net new business expected to contribute from neutral up to moderately positive.

Management also flagged a one-off reclassification related to the renewal of a large contract.