Il suo compagno lavora qui.

In Italian, possessives like mio, tuo, suo, nostro are often used together with the definite article:

• il mio libro = my book
• la sua macchina = his/her car
• il suo compagno = his/her companion/classmate/partner

So il suo compagno is the normal Italian structure.

A very important exception: with many singular family members, Italian often drops the article:

• mio padre = my father
• sua madre = his/her mother

But compagno is not a family term, so the article stays.

Yes — suo can mean both his and her. It can also sometimes mean your in formal speech (Lei), depending on context.

Italian possessives usually agree with the thing possessed, not with the owner.

Here, compagno is masculine singular, so Italian uses suo:

• il suo compagno = his companion / her companion
• la sua compagna = his companion / her companion if the possessed person is feminine

So from this sentence alone, you cannot know whether the owner is male or female. Context tells you.

Compagno can mean several things depending on context, such as:

• companion
• classmate
• schoolmate
• colleague / associate
• partner / boyfriend in some contexts

It is a broad word. The sentence by itself does not force just one interpretation.

Its feminine form is compagna.

Because compagno is the masculine singular form.

• compagno = masculine singular
• compagna = feminine singular
• compagni = masculine plural / mixed plural
• compagne = feminine plural

So il suo compagno refers to a male companion/classmate/partner.

Lavora is the third-person singular form of lavorare (to work) in the present tense.

Conjugation:

• io lavoro = I work
• tu lavori = you work
• lui/lei lavora = he/she works
• noi lavoriamo = we work
• voi lavorate = you all work
• loro lavorano = they work

Since the subject is il suo compagno (his/her companion/classmate/partner), the verb must be lavora.

Italian often omits subject pronouns when they are not needed, because the verb ending already gives useful information.

So Italian commonly says:

• Lavora qui. = He/She works here.
• Il suo compagno lavora qui. = His/Her companion works here.

Adding lui or lei is possible, but usually only for emphasis or contrast:

• Lui lavora qui, lei no. = He works here, she doesn’t.

In your sentence, the noun phrase il suo compagno already tells you the subject, so no extra pronoun is needed.

It is the present indicative.

Depending on context, the Italian present tense can translate as:

• works
• is working
• sometimes even does work

So Il suo compagno lavora qui most naturally means:

• His/Her companion works here

But in the right context, it could also mean:

• His/Her companion is working here

Italian uses the simple present more broadly than English does.

Qui means here.

Italian also has qua, which also means here. In many situations, qui and qua are interchangeable.

Very roughly:

• qui can sound a little more precise or neutral
• qua can sound a little more conversational or spatially loose

But in a simple sentence like this, either could work:

• Il suo compagno lavora qui.
• Il suo compagno lavora qua.

Both are natural.

Yes, Italian word order is flexible.

The neutral order here is:

• Il suo compagno lavora qui.

But you can also say:

• Qui lavora il suo compagno.

That version puts more focus on qui (here), almost like It’s here that his/her companion works or His/her companion works here with stronger emphasis on location.

So both are grammatical, but the emphasis changes.

Qui is pronounced roughly like kwee.

A few pronunciation notes:

• qu in Italian usually sounds like kw
• the i here is pronounced, giving kwee
• the stress is on the only syllable

So:

• qui ≈ kwee

Yes. In Italian, suo / sua / suoi / sue can also refer to your in the formal sense, when speaking to someone as Lei.

So depending on context:

• il suo compagno could mean his companion
• her companion
• your companion (formal)

In everyday speech, context usually makes this clear.

Yes. The noun, article, and possessive would need to agree with the feminine noun:

• Il suo compagno lavora qui. = male companion
• La sua compagna lavora qui. = female companion

Notice the changes:

• il → la
• suo → sua
• compagno → compagna

The verb lavora stays the same because it is still third-person singular.

Yes. Qui refers to the place of speaking or the place currently being discussed.

So lavora qui can mean:

• works here
• works at this place
• works in this office / school / company / building, depending on context

Italian leaves that kind of detail to context, just like English often does.