IWG shares tank on FY profit forecast

(Sharecast News) - Shares in International Workplace Group fell more than 16% on Tuesday after the company said full-year earnings would be at the lower end of its forecast range as the Regus owner invested more cash to grow its managed and franchise segments to take advantage of the rise in hybrid working. The company, which operates serviced offices, on Tuesday reported a rise in adjusted core earnings to $262m for the six months to June from $247m a year ago. It expects annual earnings of $525m-$565m and also announced an extension of its share buyback to $130m from $100m.

"Our growth is being fuelled by the widespread uptake of platform and hybrid working, which has revolutionised how and where people work, bringing significant productivity benefits and lower costs to companies while transforming the working lives of their teams," said chief executive Mark Dixon.

"The shift towards hybrid and more localised working is propelling our business forward with the fastest growth that we have ever seen in history. In the first half of 2025, we added a record number of locations globally, signing 496 centres, with all except two under the partnership model - and achieved our highest ever revenues."

Dixon said the shit to working a central office, shared workspace and home meant the "days of needing to be tethered to a central HQ are behind us. Technology has changed everything, effectively removing the need for daily long and expensive commutes".

Reporting by Frank Prenesti for Sharecast.com