Danish facility services provider ISS said on Tuesday it would increase its share buyback program by 500 million Danish kroner, bringing the total to 3.0 billion kroner.
The announcement came as the company reported that organic growth slowed to 3.8% in the second quarter, down from 5.8% in the same period a year earlier.
ISS attributed the slowdown mainly to the impact of net negative contract wins.
The company said the increase will apply to the second tranche of its current program, which now totals 1.75 billion kroner and will run until February 2026.
The first tranche of the program, worth 1.25 billion kroner, was completed on Aug. 8, according to a company filing.
"Additionally, with our strong capital position, we’ve decided to increase our share buyback programme by DKK 500 million,” Group CEO Kasper Fangel said in a statement.
The purpose of the buyback is to redistribute excess cash to shareholders and reduce the company's share capital, ISS said.
Despite the slowdown, the company maintained its full-year outlook, forecasting organic growth of 4% to 6% and an operating margin above 5%.
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Danish facility services provider ISS A/S on Tuesday said it would increase its share buyback program, even as it reported a slowdown in organic growth for the second quarter.