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Saga lifts profit outlook as cruises, holidays and insurance drive growth

Story Highlights
  • Saga expects higher underlying profit this year, driven by strong cruise, holidays and insurance trading.
  • Strategy gains pace with travel simplification, underwriting sale, new partnerships and reduced leverage.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Saga lifts profit outlook as cruises, holidays and insurance drive growth

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Saga plc ( (GB:SAGA) ) has provided an announcement.

Saga plc expects to report an increase in underlying profit before tax for 2025/26, ahead of both last year and its half‑year guidance, driven by strong performances in its Ocean and River Cruise, Holidays and Insurance Broking operations. Higher cruise load factors and per diem rates, double‑digit growth in holiday revenues and passenger numbers, and better‑than‑expected policy sales in insurance broking are supporting improved trading EBITDA, reduced net debt and leverage below 4.0x, with further deleveraging anticipated next year. The group has also advanced its strategy by consolidating its travel businesses under a single management team, completing the sale of its insurance underwriting arm, and launching new partnerships with Ageas in insurance and NatWest Boxed in savings, which, along with robust forward bookings for 2026/27, position Saga for continued growth and progress towards its longer‑term profitability and leverage targets.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £501.00 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Spark’s Take on GB:SAGA Stock

According to Spark, TipRanks’ AI Analyst, GB:SAGA is a Neutral.

The score is driven mainly by mixed fundamentals—strong cash generation but weak profitability and very high leverage—partly offset by a constructive earnings update showing revenue growth, improved leverage, and segment strength. Technically the trend is strong, but overbought indicators raise near-term pullback risk, while valuation is constrained by negative earnings and no stated dividend yield.

To see Spark’s full report on GB:SAGA stock, click here.

More about Saga plc

Saga plc is a UK-based specialist provider of products and services tailored to people over 50, operating under one of the country’s most recognised and trusted consumer brands. Its portfolio spans ocean and river cruises, packaged holidays, insurance broking, personal finance offerings and publishing, with a focus on high customer service standards and premium, award‑winning products for the older demographic.

Average Trading Volume: 505,876

Technical Sentiment Signal: Buy

Current Market Cap: £577M

See more insights into SAGA stock on TipRanks’ Stock Analysis page.

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