Amadeus (AMS) Q4 2024 earnings summary

Executive summary

• Achieved double-digit growth in revenue (+12.9%), EBITDA (+13.2%), operating income (+18.2%), and adjusted profit (+19.9%) in 2024, with margin expansions and strong performance across all segments.

• Free cash flow reached €1,334.8 million (+15.9%), leverage improved to 0.9x EBITDA, and net financial debt at year-end was €2,111.3 million (0.91x LTM EBITDA).

• Announced a €1.3 billion share repurchase program to be executed over the next 12 months, addressing convertible bond conversion and redeeming shares issued in 2020.

• Appointment of Carol Borg as new CFO, effective May 2025, bringing extensive finance experience.

• Major cloud transformation underway, with 60% of applications in the public cloud and full migration targeted by early 2026.

Financial highlights

• Group revenue grew to €6,141.7 million (+12.9% YoY); EBITDA: €2,335.1 million (+13.2% YoY); operating income: €1,634.9 million (+18.2% YoY); adjusted profit: €1,347.9 million (+19.9% YoY).

• Free cash flow reached €1,334.8 million (+15.9% YoY), positively impacted by non-recurring tax-related collections.

• EBITDA margin at 38.0% (+0.1 p.p. YoY); operating income margin at 26.6% (+1.2 p.p. YoY).

• Capital expenditure increased 28.9% to €770.3 million, mainly for software, cloud transformation, and customer implementations.

• Adjusted EPS (basic) increased 23.1% to €3.09; diluted adjusted EPS up 22.7% to €3.00.

Outlook and guidance

• 2025 group revenue expected at €6.69–6.94 billion (9–13% growth); EBITDA at €2.49–2.61 billion (7–12% growth), with broadly stable margin.

• Free cash flow guidance for 2025: €1.27–1.35 billion, with CapEx as a percentage of sales similar or slightly below 2024.

• Segment guidance: Air Distribution revenue growth 8–11%, Airline IT Solutions 9–14%, Hospitality & Other Solutions 12–18%.

• Fixed cost growth to moderate in 2026 after cloud migration completes.

• Dividend policy remains at a 50% payout ratio, with €626.2 million earmarked for 2024 dividends.