Amadeus FiRe (AAD) Q2 2025 earnings summary

Executive summary

• Revenue and earnings for H1 2025 fell sharply below prior year and initial expectations, driven by a challenging German economic environment and structural headwinds in both Personnel Services and Training segments.

• Both segments underperformed due to weak demand, regulatory changes, and delayed public sector budgets, with private customer growth unable to offset declines.

• Management revised FY 2025 outlook downward, now expecting significantly lower revenue and operating EBITA/EBITDA, and is prioritizing cost-saving measures and digital transformation.

• Strategic focus remains on organic and inorganic growth in training, digital learning, AI-supported CRM, and IT infrastructure.

• Dividend of €4.03 per share paid for FY 2024, totaling €21.9 million, in line with a 67% payout policy.

Financial highlights

• H1 2025 revenue declined 17.5% year-over-year to €186.6 million; Q2 revenue down 20.6% to €88.4 million.

• Operating EBITA for H1 2025 dropped 77.7% to €6.4 million; EBITDA for H1 was nearly 80% below prior year.

• Net profit for H1 2025 was €0.7 million, down 95.8% from the previous year; EPS fell to €0.12 from €3.06.

• Operating gross profit margin for H1 2025 was 51.6%, down from 54.4% in H1 2024; EBITA margin at 3.4%.

• Free cash flow dropped 97.1% to €0.8 million; cash flow from operating activities fell 80.7% to €6.0 million.

Outlook and guidance

• No recovery is expected in 2025; year-end targets will not be met, with full-year revenue expected to decrease by 15% and operating EBITA/EBITDA forecast at €15–25 million.

• Personnel Services segment revenue guided to €205–225 million; Training segment to €150–160 million.

• H2 2025 is expected to improve over H1 due to seasonal factors, cost measures, and some stabilization in public-funded training, but overall 2025 remains a crisis year.

• Additional cost measures are ready to be executed if market conditions worsen.