Saga (SAGA) H1 2026 earnings summary

Executive summary

• First half results exceeded expectations, driven by strong Travel performance, especially in Ocean and River Cruises, and significant net debt reduction.

• Strategic milestones included the sale of the Insurance Underwriting business, successful refinancing, and new leadership in Travel and Insurance.

• New partnerships, such as a 20-year insurance broking agreement with Ageas and a savings partnership with NatWest Boxed, are on track.

• Forward bookings in Travel remain robust, supporting the target of at least £100m annual underlying profit and leverage below 2.0x by January 2030.

Financial highlights

• Underlying Revenue rose 7% year-over-year to £320.5m; Trading EBITDA increased 8% to £67.5m.

• Underlying Profit Before Tax from continuing operations was £23.5m, down 5% due to higher finance costs but ahead of expectations.

• Net Debt reduced by £77.7m since January 2025 to £515.1m; Leverage Ratio improved to 4.3x from 4.8x.

• Available Operating Cash Flow increased 64% to £89.4m.

• Profit before tax improved to £3.7m from a £116.9m loss, reflecting the absence of prior year impairments.

Outlook and guidance

• Full-year Underlying Profit Before Tax expected to be in line with prior year, with year-end leverage ratio anticipated below prior year.

• Strong forward bookings in Travel, with Ocean Cruise load factor for the year at 92% and per diem up 10%.

• Insurance Broking performance ahead of expectations, but short-term earnings to dip during Ageas transition; growth expected to resume from 2026/27.

• Second-half profitability in Holidays expected to be materially higher due to seasonality; Cruise profitability to be lower.

• Targeting at least £100m Underlying Profit Before Tax and leverage below 2.0x by January 2030.