TUI (TUI1) Q2 2025 earnings summary

Executive summary

• H1 revenue rose 8% year-over-year to €8.6bn, with Q2 revenue up 1.5% to €3.7bn, driven by strong demand and improved pricing despite the Easter holiday shift impacting quarterly comparability.

• Underlying EBIT loss for H1 improved to €-155.9m from €-182.7m, with Q2 EBIT at €-206.8m, mainly affected by Easter timing; EBIT up year-over-year when adjusted for Easter.

• FY25 guidance reaffirmed: revenue expected to grow 5–10% and underlying EBIT by 7–10%, supported by robust H1 performance and strong summer bookings.

• Net debt improved to €3.0bn as of 31 March 2025, aided by refinancing of a €1.9bn sustainability-linked revolving credit facility, enhancing liquidity and financial flexibility.

• Credit ratings upgraded: S&P to BB-, Moody’s to Ba3, and Fitch initiated at BB, all with stable outlooks.

Financial highlights

• Q2 revenue: €3.7bn (+1.5% YoY); H1 revenue: €8.6bn (+8% YoY); H1 underlying EBIT loss improved to €-155.9m; EPS improved to €-0.77 from €-0.82.

• Net debt at €3.0bn, slightly improved from €3.1bn YoY; equity ratio improved to 9.5% from 7.7%.

• Net capex and investments for H1 2025 increased 12.9% to €361.4m, mainly in Hotels & Resorts and airline fleet.

• Operating cash flow for H1: -€487m; adjusted free cash flow after dividends: -€1,165m.

• Cash and cash equivalents at €1,743.0m; equity at €1,666.3m.

Outlook and guidance

• FY25 revenue expected to increase by 5–10% and underlying EBIT by 7–10%, with strong summer bookings and ASP up 4%.

• Net leverage target remains strongly below 1.0x; shareholder return strategy to be defined by end of 2025.

• Segment guidance: slight growth in Hotels & Resorts and Cruises, strong growth in TUI Musement, moderate growth in Markets & Airline.

• Net debt expected to show slight improvement by year-end.

• H2 trading for Holiday Experiences and Markets & Airline remains on track, with strong demand and higher rates expected.