Sodexo Reports Moderate Q3 Revenue Growth, Revises 2025 Guidance Lower

Sodexo, the French food services and facilities management company, reported a modest 0.8% year-on-year revenue increase to €6.1 billion in the third quarter of fiscal 2025, with organic growth of 3%. Despite solid performance in Europe and the Rest of the World—driven by strong growth in India, Brazil, and Australia—Sodexo faced challenges in North America, particularly in education and healthcare sectors, where contract exits and slow contract ramp-ups pressured volumes and margins. The company has revised its full-year 2025 guidance downward, expecting revenue growth and operating profit margin improvements to land at the lower end of its prior forecast ranges. CEO Sophie Bellon highlighted steady progress on contract ramp-ups and pricing discipline but acknowledged persistent macroeconomic and sectoral headwinds, especially in North America and European corporate services. Sodexo's Rest of the World segment remains a bright spot with robust organic growth, signaling a strategic geographic rebalancing. Overall, the company maintains confidence in long-term value creation despite near-term operational challenges.