Servcorp (ASX:SRV) has upgraded its 2026 financial year guidance, citing continued operational momentum, improved revenue efficiency and strong cash generation across its global portfolio.
Based on performance to date and subject to prevailing market conditions, the company now expects underlying NPBIT of between $80 million and $84 million, up from its previous guidance of $72 million to $76 million, while underlying free cash is forecast to be no less than $100 million, compared with prior guidance of at least $90 million.
Dividend payments are also expected to increase, with dividends now not anticipated to fall below 32 cents per share, up from a minimum of 30 cents per share.
The upgraded outlook reflects stronger contributions from mature locations as operating leverage is realised across a largely fixed cost base, supported by improved occupancy, pricing discipline and revenue mix, alongside ongoing cost control and operational efficiencies.
Servcorp said cash conversion remains robust, underpinned by stable organic revenue growth, effective working capital and lease management, and benefits from its diversified, market-leading global portfolio of 136 floors across 38 cities in 19 countries.
At the time of reporting, Servcorp's share price was $7.64.