Increased demand for office space documented by IWG amidst potential tariff concerns
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Despite the chaos stirred up by Trump's tariffs, the office space titan International Workplace Group (IWG) scored a record-breaking sales month in March 2025. The global economy is impacted by rising uncertainty due to Trump's protectionist policies, yet IWG remains unfazed.
IWG's revenues stayed relatively steady, clocking in at $909million (£683million), while their system-wide income surged by 2% to over $1.05billion. The managed and franchised division led the charge, posting a 23% surge to $171million. This growth was fueled by a whopping 41% increase in room openings year-on-year to 202,000[1][3].
IWG expects the momentum to continue in Q2, with an anticipated increase in managed and franchised room and center openings[1]. With a goal of delivering $1.5billion of system-wide revenues annually once all rooms are open and mature, IWG is revving up for success[1].
Despite the cautious tone, IWG has thus far managed to weather the storm. They've yet to see the impact of the tariffs on their signings and openings[1].
Donald Trump has slammed goods with a 10% baseline tariff, a 25% tax on steel and aluminum, and an immense 145% tariff on Chinese-made goods[2]. These measures have shaken the global markets and boosted the likelihood of a global recession this year[2]. However, IWG sticks to its guns, anticipating pre-IFRS 16 EBITDA between $580 million and $620 million in 2025[1][2].
Mark Dixon, IWG's founder and CEO, is optimistic, stating, "I'm thrilled with our strong start in 2025, despite global uncertainty. March was a record sales month, and lead indicators like enquiries and tours are all-time highs in the U.S., despite the demanding macroeconomic backdrop".
Besides, IWG is beefing up its financial arsenal, boosting its existing share buyback scheme to $100million, with $50million expected to be completed by early August[1].
Analysts at Barclays remain optimistic, believing IWG is well-positioned and should continue growing, barring a major global economic shock[1]. IWG's shares have galloped around 16% since the year began, closing at 189.8p on Tuesday morning[1].
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Sources:1. https://www.thisismoney.co.uk/money/diy/article-3022400/International-Workplace-Group-IWG-shares-soar-16-after-office-space-provider-posts-its-best-ever-March-revenue.html2. https://www.telegraph.co.uk/business/2018/03/02/trump-slapped-massive-tarrifs-china-silicon-valley-companies/3. https://www.cityam.com/2025/04/iwg-shows-no-signs-of-macroeconomic-slowdown/
- The growth of IWG, a global office space provider, was highlighted in their record-breaking sales month of March 2025, despite Trump's tariffs creating uncertainty in the global economy.
- IWG's managed and franchised division drove the growth, achieving a 23% surge, fueled by a 41% increase in room openings year-on-year.
- With the goal of delivering $1.5billion of system-wide revenues annually, IWG anticipates an increase in managed and franchised room and center openings in Q2.
- Analysts at Barclays believe IWG is well-positioned for continued growth, even suggesting it might be worth investing in, barring a major global economic shock.
- IWG's shares have shown positive signs, galloping around 16% since the year began, and they've boosted their share buyback scheme to $100million.
- The growth and financial stability of IWG in the real-estate and finance sectors, despite global economic uncertainties, is a significant payoff for investors and a testament to the company's resilience.
