TUI (TUI1) Q1 2025 earnings summary

Executive summary

• Achieved 10th consecutive quarter of underlying EBIT growth, with Q1 EBIT up 749% to €50.9m and revenue up 13% to €4.9bn, driven by strong performance in Holiday Experiences, especially Hotels & Resorts, Cruises, and TUI Musement.

• Strategic focus on asset-light and asset-right growth, dynamic packaging, digital transformation, and M&A, with significant investments in app, retail, and operational KPIs.

• Sustainability remains a core priority, with new green ships, fuel-efficient aircraft, IT carbon footprint reduction, and CDP 'A' rating.

• Net debt stood at €4.1bn, broadly flat year-over-year, with Fitch assigning a BB rating, restoring pre-pandemic credit status.

• 3.7m customers traveled in Q1, up 6%, with dynamic package guests up 18%.

Financial highlights

• Q1 revenue reached €4,872m (+13.2% year-over-year); underlying EBIT at €50.9m (+749.3%); EBITDA at €278m (+32.3%).

• Hotels & Resorts EBIT up €60m, with bed nights up 3%, occupancy up 2pp to 80%, and daily rate up 5%.

• Cruise EBIT up €14m, capacity up 10%, occupancy at 95%, and daily rates up 4%.

• TUI Musement EBIT up €9m, with experiences growth of 12% and revenue up 18.6%.

• Net capex and investments: €230.8m (+426.2%); adjusted free cash flow before dividends: -€2,140m, reflecting seasonal outflows.

Outlook and guidance

• FY25 guidance reaffirmed: revenue expected to grow 5–10% and underlying EBIT by 7–10% year-over-year.

• Expect strong Q2 and H2, with higher occupancy and daily rates in Hotels & Resorts and Cruises.

• Bookings for W24/25 and S25 up 2% year-over-year, with ASP up 4%.

• Anticipate continued growth in dynamic packaging and digital channels, with further airline partnerships to be added.

• Easter shift will move €30–40m of profitability from Q1 to Q2/Q3.