Amadeus FiRe (AAD) Q1 2025 earnings summary

Executive summary

• Q1 2025 results reflect a challenging macroeconomic environment in Germany, with zero GDP growth, increased unemployment, and persistent economic stagnation impacting business activity and leading to significant revenue and earnings declines.

• Management remains committed to profitable growth, investing in digital transformation, cost control, and future learning platforms, while reaffirming its dividend policy with a €4.03 per share proposal for 2024.

• CEO contract extended for five years, ensuring leadership continuity and management stability.

Financial highlights

• Q1 2025 revenue declined 14.5% year-over-year to €98.2 million, with operating EBITA dropping 70.2% to €4.3 million and profit for the period down 89.3% to €1.0 million.

• EBITDA margin fell to 4.4% from 12.6% a year ago; earnings per share decreased to €0.18 from €1.67.

• Gross profit margin declined to 52%, with gross profit at €51.1 million.

• Free cash flow dropped 85.5% to €1.6 million; closing share price as of March 31 was €76.30, down 36.5%.

• Dividend proposal for 2024 is €4.03 per share, maintaining a 2/3 payout ratio.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue expected between €387–417 million and operating EBITA of €36–44 million, with an average margin around 10%.

• Management expects Q1 to be the weakest quarter, with improvements anticipated in Training and stabilization in Personnel Services over the year.

• No significant improvement anticipated for FY 2025 due to ongoing economic and geopolitical challenges.

• Cost management, technology investments, and cautious recruitment are key levers for achieving targets.