Whitbread (WTB) H2 2025 earnings summary

Executive summary

• Strong progress on the five-year plan, targeting over £2bn in shareholder returns and at least £300m incremental adjusted PBT by FY30.

• Outperformance versus the market in both the U.K. and Germany, despite softer demand and broadly flat group revenues year-over-year.

• Germany set for profitability in FY26, with significant sales growth, reduced losses, and continued network expansion.

• Accelerating Growth Plan and commercial initiatives driving efficiencies, expansion, and higher margins.

• Accelerated capital returns with £442m distributed via buy-backs and dividends in FY25.

Financial highlights

• Group adjusted EBITDA/EBITDAR down 3% year-on-year at just over £1bn; group statutory revenue of £2,922m, down 1% year-over-year.

• Adjusted profit before tax £483m, down 14%; statutory profit before tax £368m after £116m of adjusting items.

• U.K. adjusted profit before tax down 14% year-on-year at £507m; pre-tax margin at 18.8%.

• Germany revenues up 21% to £231m, EBITDA/EBITDAR up 58% to £66m, and adjusted losses before tax reduced to £11m.

• Operating cashflow of £723m funded £488m in capex and £442m in shareholder returns.

Outlook and guidance

• FY26 guidance: open 1,000–1,200 new rooms in the U.K. (including 500–700 AGP extension rooms) and 400 in Germany.

• Germany expected to deliver adjusted PBT of £5m–£10m in FY26.

• GBP 60m of cost efficiencies expected in FY26, up from GBP 50m previously guided; UK net cost inflation at the lower end of 2–3%.

• Net CapEx to be maintained between £400m–£500m, funded by property recycling; property proceeds of £250m–£300m.

• Five-year plan targets at least £300m incremental adjusted PBT and over £2bn in shareholder returns by FY30.