International Workspace Group: Attractive flexibility

Research evidence excerpt

International Workspace Group: Attractive flexibility

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy International 12 May 2026

Company Update

Europe Workspace Group

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 11 May 2026 (GBP) 188.30

IWG.L IWG LN LSE IWG

Price Target (GBP) 275.00

Business Services

249.40 -

Specialist Services 52-week range (GBP) 168.80

Attractive flexibility

Valuation & Risks

Steve Woolf

A strong start Research Analyst

Q1 system-wide revenue of $1.2bn increased 9% YoY. Excluding partner +44-20-754-54604

contributions, Group revenue of $958m increased by 4% YoY, reflecting 2% growth

James Beard

in the company-owned portfolio, as well as an acceleration in the contribution from Research Analyst

the managed & franchised business. Net debt was c.$860m, slightly ahead of +44-20-754-56765

management's expectations due to the introduction of a new invoicing system with

David Brockton

working capital expected to normalise by year-end. Despite this, we believe there

Research Analyst

is scope to increase the $100m of the share buyback programme at the H1 Results.

+44-20-754-11721

Bharat Rajesh, CFA

Accelerating M&F

Research Associate

The managed & franchised business grew system revenue by 41% YoY to $260m

with the contribution to IWG 44% higher at £52m and fee income 70% ahead YoY

at $39m. The portfolio has increased to 2,082 locations and 336k rooms. We note Price/price relative

31k rooms were opened during the period with a pipeline of 231k. Combined, this

portfolio has the potential to generate system revenue in excess of $1.9bn.

Outlook unchanged

While exposure to the Middle East is relatively small (c.2%), management are 100 2024 2025 2026

cognisant of the risk of global cost inflation and have commenced a cost reduction