Whitbread (WTB) H2 2026 earnings summary

Executive summary

• Announced a bold new five-year plan focused on accelerating strategy, increasing margins, reducing capital intensity, and maximizing shareholder returns, following a comprehensive business review with external advisors.

• Transitioning to a 100% pure-play hotel business by exiting all branded restaurants and focusing on high-returning hotel projects in the UK and Germany.

• Plan aims to generate £2 billion of free cash flow for shareholders by FY 2031, with a 500 basis point increase in group ROCE and £275 million incremental group PBT.

• Significant changes in capital allocation, property recycling, and operational efficiency underpin the plan.

• Accelerated cost efficiencies and profitable operations in Germany contributed to robust shareholder returns.

Financial highlights

• Group revenues were flat year-on-year at £2,920 million; UK accommodation sales up 1% and Germany revenues up 13%.

• EBITDA increased 4% to £1.1 billion, supported by a 2% reduction in operating costs.

• Adjusted profit before tax was flat at £483 million; statutory PBT was £298 million due to increased adjusting items.

• Adjusted basic EPS increased 7% to 208.5p; £419 million returned to shareholders via dividends and buybacks.

• Gross capex was £697 million, including £90 million AGP spend; property proceeds totaled £313 million.

Outlook and guidance

• Plan to open 96,000 rooms in the UK and Ireland by February 2031, with long-term potential for 125,000 rooms.

• Germany expected to reach 18,000 rooms by FY 2031, turning cash flow positive by FY 2029 and achieving double-digit returns.

• FY27 guidance includes c.1,000 new UK rooms, 750 AGP extension rooms, and c.2,300 new rooms in Germany.

• Net CapEx to be reduced to £200–250 million per annum, funded by £1.5 billion of freehold property recycling.

• £2 billion of free cash flow to be returned to shareholders over the plan period.