**Summary**
SSP Group PLC, a leading operator of food and beverage outlets in travel locations across 38 countries, released its Q4 trading update on October 9, 2025. The company is on track to deliver full-year earnings per share (EPS) in line with market expectations, despite a moderation in passenger growth in the second half of FY25. Key highlights include
1. **Financial Performance**
FY25 revenue is expected to be approximately £3.7 billion, up 8% year-on-year (YoY) on a constant currency basis.
Operating profit is projected at £230 million, an 11% YoY increase, with an operating margin of 6.2%.
EPS is expected to be 12.3p on a constant currency basis and 11.5p at actual exchange rates, in line with market expectations.
2. **Regional Performance**
Q4 revenue grew 4% YoY on a constant currency basis, driven by strong performance in Asia Pacific, North America, and the UK, offset by weaker sales in Continental Europe.
Continental Europe faced challenges due to the phased exit from unprofitable German Motorway Services (MSA) units.
3. **Strategic Initiatives**
SSP announced a £100 million share buyback program, reflecting its healthy balance sheet and confidence in future prospects.
Leverage is expected to reduce to 1.6x net debt/EBITDA by year-end, within the medium-term target range of 1.5-2.0x.
Focus on improving profitability in France and Germany, with initiatives including cost reductions, rent restructuring, and lower capital spend.
4. **Outlook for FY26**
SSP expects to deliver EPS within the current market range, supported by cost efficiency measures and improved operational performance.
Capital expenditure is projected to be below £200 million, with growth capex aligned with net gains.
5. **Management Commentary**
CEO Patrick Coveney highlighted resilient performance in a challenging macroeconomic environment and emphasized ongoing efforts to strengthen performance across the group, particularly in France and Germany.
Overall, SSP remains confident in its strategy and financial health, with a focus on sustainable growth and shareholder value creation.