TUI (TUI1) Q4 2025 earnings summary

Executive summary

• Achieved record FY25 results with revenue of €24.2bn (+4.4%) and underlying EBIT of €1,459m (+12.6% at constant currency), surpassing guidance, driven by strong performance in Hotels & Resorts, Cruises, and Musement.

• Launched a new dividend policy, starting with a €0.10 per share payout for FY25 and a 10-20% payout ratio of underlying EPS from FY26, reflecting improved profitability and balance sheet strength.

• Net debt reduced to €1.3bn (from €1.6bn), with net leverage at 0.6x, the lowest in a decade and targeting below 0.5x mid-term.

• Strategic transformation continued with investments in IT, marketing, M&A, and AI integration, focusing on asset-light growth, operational efficiency, and digitalization.

• Customer volumes grew 5% to 34.7m, supported by dynamic packaging and expanded product offerings.

Financial highlights

• Revenue grew to €24.2bn (+4.4% year-over-year), with underlying EBIT up 12.6% at constant currency and 9% at actual rates.

• Underlying EPS increased 30% to €1.34, and group result (EAT after minority interests) rose 25% to €636m.

• Net debt reduced by €336m to €1,305m, with net leverage ratio improved from 0.8x to 0.6x.

• Adjusted free cash flow after dividends reached €358m, up from €236m in FY24.

• S&P, Moody's, and Fitch upgraded credit ratings to BB/Ba territory with stable outlooks.

Outlook and guidance

• FY26 revenue expected to grow by 2-4%, with underlying EBIT guidance of +7-10% at constant currency.

• Net investments for FY26 projected at €860-900m, focused on growth in hotels, cruises, and airline fleet modernization.

• Mid-term ambitions include underlying EBIT CAGR of 7-10%, net leverage below 0.5x, and a 10-20% dividend payout ratio.