TUI (TUI1) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 revenue of €5.8 billion, up 9–10% year-over-year, with all business segments contributing to growth.

• Underlying EBIT rose to €232 million, a 37% increase compared to last year, marking the 8th consecutive quarter of double-digit EBIT growth.

• Strategic transformation program is progressing, focusing on operational excellence, platform business expansion, and mid-term EBIT CAGR of 7–10%.

• Net debt improved to €2.1 billion, supported by positive free cash flow and refinancing actions.

• FY24 guidance reconfirmed: underlying EBIT to increase by at least 25% and revenue by at least 10% year-over-year.

Financial highlights

• Q3 underlying EBITDA reached €447 million, up from €367 million in Q3 FY23; 9M underlying EBITDA at €671 million.

• Q3 group profit was €104 million, with basic EPS doubled to €0.10.

• Free cash flow after dividends for Q3 was €1.2 billion, mainly driven by EBITDA and strong working capital inflow.

• Net investments higher year-to-date due to RIU joint venture and project phasing.

• Cash flow and working capital at record levels, supporting a slight improvement in the balance sheet.

Outlook and guidance

• FY24 revenue expected to increase by at least 10% and underlying EBIT by at least 25%, based on constant currency and current macroeconomic/geopolitical conditions.

• Bookings for summer 2024 up 6% with average selling price up 3%; early Winter 2024/25 bookings are promising.

• Mid-term ambition for 7–10% annual EBIT growth and net leverage strongly below 1.0x.

• Confident in future growth, driven by platform rollout, international expansion, and sustainability initiatives.