Amadeus (AMS) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with group revenue up 6.1% to €6,517 million (9% at constant currency), adjusted EBIT up 10% at constant currency, and robust free cash flow, driven by growth in Air IT and Hospitality segments.

• Maintained commercial momentum with major airline and hospitality wins, and invested over €1.4 billion in R&D (22% of revenue), supporting innovation and future growth.

• Completed €1.3 billion share buyback in Q4 2025 and returned €2 billion to shareholders through dividends and repurchases; announced new €500 million buyback for 2026.

• Continued strategic investments in cloud migration and AI initiatives, launching the Nevio AI-native platform and Stratos for next-generation retailing.

• Announced midterm outlook targeting high single-digit revenue growth, low double-digit EPS growth, and high single-digit free cash flow growth.

Financial highlights

• 2025 revenue: €6,517 million (+9% constant currency, +6% reported); adjusted EBIT: €1,894 million (+10% constant currency, +9% reported); profit: €1,336 million (+7%).

• Adjusted diluted EPS grew 9% at constant currency to €3.20; diluted EPS up 8% to €3.01.

• Free cash flow: €1,302 million (+7% excluding non-recurring 2024 flows); cash conversion at 94%.

• Adjusted EBIT margin expanded to 29.1% (up 0.7pp year-over-year); EBITDA margin at 38.5%.

• Leverage: 0.9x net debt/EBITDA; dividend payout at 50% of profit, totaling €664.6 million.

Outlook and guidance

• 2026 revenue expected to grow at high single-digit rate at constant currency, with stable adjusted EBIT margin and €1.35–1.45 billion free cash flow guidance.

• Dividend at top end of policy (~€700 million) and new €500 million share repurchase program for 2026.

• Midterm (2026–2028): high single-digit revenue CAGR, low double-digit EPS CAGR, and high single-digit free cash flow CAGR.

• Segment guidance: Air IT Solutions high single-digit revenue growth, Hospitality & Other Solutions low double-digit, Air Distribution mid to high single-digit.

• Capital expenditure expected at 10–12% of revenue.