TUI (TUI1) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 underlying EBIT of €77 million, up €26 million year-over-year, with revenue of €4.9 billion and strong demand across segments.

• Net debt reduced by €0.5 billion to €3.6 billion, enabling a new dividend policy and further deleveraging.

• Dividend payments to resume, with a proposal of €0.10 per share for FY 2025 and 10%-20% of underlying EPS for future years.

• Strategic progress includes digital transformation, new market entries (e.g., Romania), and sustainability milestones such as a CDP A rating.

• Guidance for FY 2026 reaffirmed, targeting underlying EBIT growth of 7%-10% and revenue growth of 2%-4% at constant currency.

Financial highlights

• Q1 underlying EBIT reached €77 million, the highest ever for this quarter, with revenue of €4.9 billion (+1.3% at constant currency).

• Net debt improved by €0.5 billion to €3.6 billion, including FX effects.

• Underlying EPS improved by €0.09 to -€0.08, and group result turned positive at €3.3 million.

• Interest expense and lease costs reduced due to restructuring and asset ownership.

• Cash flow and EBITDA improved, with group EBITDA at €299 million (+8.8%).

Outlook and guidance

• FY 2026 revenue expected to grow by 2%-4% and underlying EBIT by 7%-10% at constant currency.

• Segment guidance: slight growth in Hotels & Resorts, strong growth in Cruises and Musement, and 7%-10% EBIT growth in Markets + Airline.

• Dividend policy: €0.10 per share for FY 2025, 10%-20% payout of underlying EPS from FY 2026.

• Confident in achieving last year's summer levels despite -2% summer trading, supported by late booking trends.

• Guidance provided with caution due to macroeconomic and geopolitical uncertainties.