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%) for FY 2024, meeting or exceeding outlook and commitments, with margin expansions across key metrics.

• 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 maturity and redeeming shares issued in 2020.

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

• Appointment of Carol Borg as CFO, effective May 2025.

Financial highlights

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

• Free cash flow was €1,334.8 million (+15.9%), with leverage at 0.9x EBITDA; capital expenditure increased 28.9% to €770.3 million, mainly for software development and cloud transformation.

• EBITDA margin was 38.0% (+0.1 p.p. YoY); EBIT margin expanded to 26.6% (+1.2 p.p. YoY); adjusted EPS (basic) increased 23.1% to €3.09.

• Dividend payout proposed at 50% of 2024 profit, with €626.2 million earmarked for dividends.

Outlook and guidance

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

• Free cash flow guidance for 2025: €1.27–€1.35 billion; capex as a percentage of revenue similar or slightly below 2024.

• Segment guidance: Air Distribution revenue growth 8%–11%, Air IT Solutions 9%–13.5%, Hospitality & Other Solutions 12%–18%.

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

• Dividend policy remains at a 50% payout ratio.