Profit Guidance
| Stock | Servcorp Ltd (SRV.ASX) |
|---|---|
| Release Time | 21 Jan 2026, 12:34 p.m. |
| Price Sensitive | Yes |
Servcorp Upgrades FY26 Profit Guidance
- Underlying NPBIT expected between $80.0-$84.0 million (previously $72.0-$76.0 million)
- Underlying Free Cash expected to be no less than $100.0 million (previously no less than $90.0 million)
- Dividend payment not expected to be below 32.0 cents per share (previously not below 30.0 cents per share)
Servcorp Limited has provided an update on its current operations and 2026 Financial Year profit guidance. The company previously provided guidance for the 2026 Financial Year of Underlying NPBIT between $72.0 million and $76.0 million and Underlying Free Cash of no less than $90.0 million, with dividends not expected to be below 30.0 cents per share. Based on performance to date, and provided current trading conditions continue, Servcorp now upgrades its 2026 Financial Year guidance. Underlying NPBIT is expected to be between $80.0 million and $84.0 million, Underlying Free Cash is expected to be no less than $100.0 million, and dividend payment is not expected to be below 32.0 cents per share. The upgraded guidance reflects continued operating momentum, with performance supported by stronger contributions from mature locations as operating leverage is realised across a largely fixed cost base. Improved occupancy, pricing discipline, revenue structure, and service conversion have driven higher revenue efficiency across key regions, while the gradual recovery in other markets continues. These revenue gains have been complemented by ongoing operational efficiencies, including disciplined cost control, investment in growing team depth and capability, Servcorp's unique business model and value proposition, and continued development of its proprietary IT platform and cybersecurity ecosystem. Cash generation has remained strong, supported by stable and organic revenue growth, effective working capital management, and sustained focus on lease management, resulting in improved cash conversion across the global portfolio. Servcorp continues to benefit from the scale and quality of its market-leading global portfolio, with 136 floors across 38 cities and 19 countries, providing diversification and resilience in a mixed macroeconomic environment.
Underlying NPBIT expected to be between $80.0 million and $84.0 million, Underlying Free Cash expected to be no less than $100.0 million, and dividend payment not expected to be below 32.0 cents per share for the 2026 Financial Year.
Servcorp remains focused on driving occupancy, maximising revenue efficiency in mature locations, and selectively expanding where supported by management depth and operational readiness. The company will continue to monitor market conditions and update the market accordingly.