IWG shares climb as forecasts adjusted earnings ahead of consensus

International Workplace Group PLC on Tuesday said it expects to beat market consensus expectations for all of 2026, after "another strong quarter".

The Zug, Switzerland-based provider of hybrid workspace under Regus and other brands said group revenue rose 8.8% to USD1.03 billion in the third quarter from USD947 million a year prior.

System-wide revenue increased 12% to USD1.26 billion from USD1.13 billion.

System-wide revenue is the total made by every single workspace in the IWG network, including partner and franchise locations. Group revenue includes sales from company owned sites, and service fees from partner centres.

Company-owned revenue grew 8.0% to USD969 million, with revenue per available room up 2.0%, while Managed & Franchised fee revenue jumped 28% to USD45 million.

During the quarter, IWG said it has signed 332 new work centres and opened 211 compared to 335 and 215 in the same quarter a year ago.

Net debt narrowed to USD874 million at September 30 from USD880 million at June 30, despite USD39 million of share buybacks during the quarter, bringing total repurchases for the first nine months to USD139 million.

Chief Executive Christian Schmitz called it "another strong quarter", with "revenue growth across the business and continued momentum in our Managed & Franchised operations".

He highlighted two "significant milestones". First, IWG's global network now exceeds 5,000 centres, and second quarterly system-wide revenue implies an over USD5 billion annualised run-rate.

As a result, IWG tightened its full-year adjusted earnings before interest, tax, depreciation and amortisation guidance range, which had been USD585 million to USD625 million.

It now expects adjusted Ebitda to be above current consensus of USD599 million and sees net debt remaining at first half levels, resulting in full-year net debt to adjusted Ebitda of around 1.4 times to 1.5x as previously guided.

Adjusted Ebitda would be up from USD531 million in 2025 when it reported net debt to adjusted Ebitda of 1.35x.

IWG maintained its target of at least USD1.00 billion per annum in adjusted Ebitda over the medium term.

Shares in IWG climbed 7.2% to 211.40 pence each in London on Tuesday.

Copyright 2026 Alliance News Ltd. All Rights Reserved.