Amadeus IT Group (AMS) Q1 2025 earnings summary

Executive summary

• Group revenue grew 9% year-over-year in Q1 2025 to €1,632.2 million, with operating income up 10% to €462 million and adjusted operating income up 10.1% to €478.5 million.

• Profit increased 13% to €355 million, with adjusted profit up 12.3% to €364 million.

• Free cash flow was €262 million, down 22.1% year-over-year due to higher capex and working capital outflow.

• Net financial debt decreased to €1,875 million (0.8x LTM EBITDA), aided by bond conversions and strong cash generation.

• Share repurchase program of up to €1.3 billion launched in March 2025.

Financial highlights

• EBITDA grew 8.1% to €628 million, with a margin of 38.5% (down 0.4 p.p.); adjusted EBIT margin up 0.3 p.p. to 29.3%.

• Basic EPS rose 12% to €0.80; diluted EPS up 13% to €0.79.

• CapEx increased 30.9% year-over-year to €207.6 million, representing 12.7% of revenue.

• Free cash flow for Q1 2025 was €262 million.

Outlook and guidance

• 2025 revenue guidance (ex-forex): €6.6–6.84 billion, growth of 7.4%–11.4%; EBITDA (ex-forex): €2.46–2.58 billion, growth of 5.7%–11%.

• Free cash flow (ex-forex): €1.25–1.33 billion.

• Segment revenue growth guidance: Air Distribution 6.5–9.5%, Air IT Solutions 7.7–12.1%, Hospitality & Other Solutions 9.5–15.5%.

• Guidance based on IATA 6% global air traffic growth; outlook excludes forex due to high USD/EUR volatility.

• Top end of guidance requires stronger traffic recovery; confident in achieving range barring significant industry downturn.