Shares in flexible workspace operator IWG PLC (LSE:IWG) fell 17% on Tuesday after the group warned that full-year earnings would come in at the lower end of its previously guided range.
The owner of the Regus office chain said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for 2025 would likely be closer to $525 million than the top end of $565 million, citing higher investment in its Managed and Franchise division.
The warning overshadowed what was otherwise a solid first-half performance. System-wide revenue rose 2% year on year to a record $2.2 billion, while group adjusted EBITDA increased 6% to $262 million.
The company highlighted stronger recurring management fees and improved margins in its company-owned centres, supported by higher occupancy.
Chief executive Mark Dixon said IWG’s global pipeline remained strong, with almost one million rooms now open across 121 countries, and reiterated the group’s $1 billion medium-term EBITDA target.
The stock topped the FTSE 250 losers' list, dropping 36.8p to 190.8p.