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Amadeus IT Group, S.A. (AMADY)
OTHER OTC:AMADY
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Amadeus IT Group, S.A.
(OTC:AMADY)
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Rating:71Outperform
Price Target:
$77.00
▲(2.67% Upside)
Action:ReiteratedDate:11/21/25
Amadeus IT Group's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting strategic growth and resilience. However, technical indicators suggest short-term bearish trends, and valuation metrics indicate a fair but not compelling investment case. The company's ability to navigate market challenges and leverage strategic advancements in AI and hospitality are key strengths.
Positive Factors
Revenue Growth
Consistent revenue and EBIT growth indicate robust financial performance and effective business operations, supporting long-term stability.
Strategic Partnerships
Securing strategic partnerships enhances market reach and strengthens competitive positioning, fostering sustainable growth.
Investment in R&D
Significant R&D investment in AI and cloud tech positions Amadeus as an innovator, driving future product development and market leadership.
Negative Factors
North American Market Challenges
Challenges in North America could hinder growth, as regional performance impacts overall revenue and market expansion efforts.
Moderation in Revenue Per Booking
Slower revenue per booking growth may affect short-term financial performance, indicating potential pricing pressure or competitive dynamics.
Impact of U.S. Flight Restrictions
U.S. flight restrictions pose risks to transaction volumes, potentially impacting revenue streams and operational forecasts.
Amadeus IT Group, S.A. (AMADY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.15B
Dividend Yield1.55%
Average Volume (3M)3.63K
Price to Earnings (P/E)18.3
Beta (1Y)0.61
Revenue Growth10.25%
EPS Growth14.23%
CountryUS
Employees20,643
SectorTechnology
Sector Strength88
IndustryTravel Services
Share Statistics
EPS (TTM)0.85
Shares Outstanding450,499,000
10 Day Avg. Volume2,958
30 Day Avg. Volume3,629
Financial Highlights & Ratios
PEG Ratio1.65
Price to Book (P/B)6.05
Price to Sales (P/S)4.99
P/FCF Ratio22.57
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit8.24
Enterprise Value/Ebitda9.98
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.09
Revenue Forecast (FY)$8.22B
Amadeus IT Group, S.A. Business Overview & Revenue Model
Company DescriptionAmadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through two segments, Distribution and IT Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, distribution, regional support, data processing, intermediation, consulting, installation of industrial machinery and equipment, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, road and sea transport companies, travel sellers and brokers, travel buyers, and ground handlers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.
How the Company Makes MoneyAmadeus generates revenue primarily through its technology solutions and services, which are offered on a transactional basis. Key revenue streams include fees from airlines and travel agencies for the use of its Global Distribution System (GDS), which facilitates travel bookings and inventory management. Additionally, the company earns income from software licensing, maintenance contracts, and consulting services. Significant partnerships with major airlines, hotel chains, and travel management companies enhance its market reach and contribute to its earnings. The company also benefits from a growing demand for digital transformation in travel, enabling it to capitalize on trends such as mobile bookings and personalized travel experiences.
Amadeus IT Group, S.A. Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit acceleration in Q4, solid full-year growth across revenue, adjusted EBIT and EPS at constant currency, robust free cash flow and substantial shareholder returns. Management highlighted significant commercial wins (Nevio adoption by Lufthansa Group, Navitaire Stratos deals), successful cloud migration completion, strategic AI positioning and continued high R&D investment to capture medium-term opportunities. Near-term headwinds were acknowledged—primarily a cloud migration-related margin timing impact, elevated cost and investment levels, a slight YoY FCF dip due to nonrecurring items, and some booking softness in Q4 from U.S. cancellations. Overall, the positives (strong growth, cash generation, strategic wins and clear midterm targets) outweigh the manageable and largely one-off or investment-related lowlights.Q4-2025 Updates
Positive Updates
Strong Top-Line and Profit Growth
Full year 2025 group revenue of EUR 6,517m, +9% at constant currency (+6% reported); adjusted EBIT EUR 1,894m, +10% at constant currency (+9% reported). Q4 revenue +10% and adjusted EBIT +15% at constant currency, showing acceleration into year-end.
Robust Cash Generation and Shareholder Returns
Free cash flow of EUR 1,302m in 2025 (7% growth excluding nonrecurring 2024 flows); pretax operating cash flow conversion 94%; returned EUR 2bn to shareholders through dividends and buybacks in the year; completed EUR 1.3bn buyback in Q4 2025 and announced an additional EUR 500m buyback to be executed within six months.
High R&D Investment to Support Long-Term Growth
R&D investment of EUR 1,434m in 2025, up 7.6% year-on-year and representing 22% of revenue; management expects continued high investment levels to underpin AI, Nevio, Navitaire Stratos, hospitality platform and cloud initiatives.
Segment-Level Momentum — Air IT Solutions
Air IT Solutions revenue +8.7% at constant currency for 2025; full-year PBs +3.8% and revenue per PB +4.7%; Q4 revenue growth for the segment +10.9% CC. Key commercial wins and implementations (Lufthansa Group adopting Nevio across 9 airlines; Pan American World Airways; Thai Airways selecting dynamic pricing).
Segment-Level Momentum — Hospitality & Payments
Hospitality & Other Solutions revenue +9.6% at constant currency in 2025 and Q4 +13.9% CC, driven by customer implementations (first Marriott properties live on CRS, Accor, Ascott Limited pilots) and payments growth; contribution up 13.8% with contribution margin improving 1.3 percentage points to 35.8%.
Air Distribution Growth and Improved Unit Economics
Air Distribution revenue +8% at constant currency in 2025, driven by booking volumes +2.8% and revenue per booking +5%; contribution margin expanded 2.3pp to 49.6% as unit economics improved.
Strategic Technology & AI Positioning
Completed cloud migration; expanded partnerships with Google and Microsoft; 25% of Altéa PBs engaged in Nevio program; over 75 signed NDC airline distribution agreements; acquisition of AI-first Skylink to accelerate conversational/orchestration capabilities—positioned to be an orchestration layer in an AI-enabled travel ecosystem.
Midterm Financial Outlook and EPS Target
Announced midterm targets: group revenue high single-digit CAGR (2026–28, constant currency), adjusted EBIT margin expansion over the period, low double-digit adjusted diluted EPS CAGR, and high single-digit free cash flow CAGR; 2026 guidance includes high single-digit revenue growth CC, stable adjusted EBIT margin (cloud ramp-up drag) and free cash flow EUR 1.35–1.45bn.
Negative Updates
Short-Term Margin Headwind from Cloud Migration
Management expects a 2026 timing drag on adjusted EBIT margin due to the cloud migration ramp-up in 2025; adjusted EBIT margin was 28.8% in 2025 (+0.5pp year-on-year) but 2026 margin is expected to be stable only because of this one-off cloud-related cost phasing.
Higher Cost Base and R&D/Cloud-Related Spend
Reported fixed cost growth of 6.5% driven by higher R&D resources, higher unitary costs and increased cloud costs; Air IT solutions costs rose 9.4% (Vision-Box consolidation and R&D), and ordinary D&A increased 4.4% (higher amortization of internally developed software).
Free Cash Flow Impacted by Nonrecurring Items and Timing
Free cash flow was slightly below prior year (-2.4%) due to nonrecurring tax-related inflows in 2024; excluding those effects, FCF was +6.9%—management also warned of negative free cash flow growth in Q1 2026 because of payment timing.
Air Distribution Q4 Softness from Cancellations
Air Distribution revenue in Q4 softened relative to Q3 largely due to an increase in flight cancellations in the U.S., impacting booking evolution and near-term volume growth in that quarter.
Margin Dilution in Air IT Contribution
Air IT Solutions contribution margin was 70.7%, 0.2 percentage points below prior year primarily due to Vision-Box consolidation impact; cost growth outpaced contribution growth in the segment (costs +9.4%).
Ongoing High Capital Intensity
Capital expenditure represented 12.5% of revenue in 2025 and is expected to remain in the low double-digit percentage of group revenue over the midterm—meaning sustained high investment levels and limited near-term deleveraging despite strong cash generation.
Company Guidance
Management guided 2026 group revenue to grow at high single‑digit at constant currency, with adjusted EBIT margin expected to be broadly stable in 2026 (noting a one‑off drag from the cloud migration that would imply margin expansion excluding that effect) and a commitment to low double‑digit adjusted diluted EPS growth for 2026. They forecast free cash flow of €1.35–1.45bn in 2026, capital expenditure of 10–12% of revenue, and Q1 seasonality with a negative FCF timing effect; shareholder returns include a dividend at the top end of policy (~€700m) and a €500m share buyback to be executed within six months. Over the midterm ('26–'28) management targets high single‑digit CAGR group revenue (cc), adjusted EBIT margin expansion, low‑double‑digit adjusted diluted EPS CAGR, high single‑digit CAGR free cash flow and continued investment (capex at a low‑double‑digit % of revenue); segment guidance calls for Air IT to grow high single‑digit, Hospitality to accelerate to double‑digit growth, and Air Distribution to see steady bookings with moderating revenue‑per‑booking growth.Amadeus IT Group, S.A. Financial Statement Overview
Summary
Amadeus IT Group demonstrates strong financial performance with significant revenue and profit growth, robust cash flow generation, and a balanced balance sheet. The company effectively navigated through the pandemic-induced downturn, showcasing resilience and adaptability. However, potential global disruptions and high debt levels in previous years pose risks.Income Statement
Amadeus IT Group has shown significant revenue growth, with a notable increase in Total Revenue from $2.67 billion in 2021 to $6.14 billion in 2024. The Gross Profit Margin in 2024 is approximately 43.23%, which indicates solid profitability. The Net Profit Margin improved significantly, reaching 20.41% in 2024. The company also demonstrated strong EBIT and EBITDA margins, indicating effective cost management and operational efficiency. However, the dip in revenue during the pandemic in 2020 highlights potential vulnerability to global disruptions.82
Very Positive
Balance Sheet
The company maintains a moderate Debt-to-Equity Ratio of 0.67 in 2024, suggesting a balanced financial structure. The Return on Equity (ROE) is robust at 24.75% in 2024, reflecting effective utilization of equity capital to generate profits. The Equity Ratio is stable at around 42.96%, indicating a healthy equity position relative to total assets. However, the high debt levels in 2020 and 2021 pose a risk if similar economic challenges recur.75
Positive
Cash Flow
Amadeus IT Group has achieved positive Free Cash Flow growth, with significant jumps from $176.1 million in 2021 to $1.36 billion in 2024, highlighting improved cash generation capabilities. The Operating Cash Flow to Net Income ratio is strong, suggesting efficient conversion of profits into cash. The company also maintains a solid Free Cash Flow to Net Income ratio, underscoring effective cash management. However, fluctuations in Investing and Financing Cash Flows indicate variability in capital allocation strategies.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.44B | 6.14B | 5.44B | 4.49B | 2.67B | 2.17B |
| Gross Profit | 3.04B | 2.65B | 2.41B | 1.87B | 834.90M | 299.80M |
| EBITDA | 2.51B | 2.35B | 2.13B | 1.55B | 575.90M | 159.40M |
| Net Income | 1.35B | 1.25B | 1.12B | 664.40M | -142.40M | -625.40M |
Balance Sheet | ||||||
| Total Assets | 11.58B | 11.78B | 10.80B | 11.71B | 11.18B | 11.70B |
| Cash, Cash Equivalents and Short-Term Investments | 968.20M | 1.13B | 1.06B | 1.99B | 1.82B | 2.48B |
| Total Debt | 0.00 | 3.38B | 3.31B | 4.41B | 4.98B | 5.66B |
| Total Liabilities | 6.51B | 6.72B | 6.31B | 7.13B | 7.44B | 7.94B |
| Stockholders Equity | 5.07B | 5.06B | 4.48B | 4.58B | 3.75B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | 1.62B | 1.36B | 1.19B | 874.10M | 176.10M | -468.50M |
| Operating Cash Flow | 1.38B | 2.15B | 1.79B | 1.44B | 636.30M | 33.00M |
| Investing Cash Flow | -962.52M | -1.15B | 4.50M | -493.30M | -205.50M | -1.47B |
| Financing Cash Flow | -1.16B | -990.10M | -2.19B | -640.10M | -865.80M | 2.46B |
Amadeus IT Group, S.A. Technical Analysis
Neutral
75.00
Price Trends
67.20
Negative
71.31
Negative
76.23
Negative
Market Momentum
-2.47
Negative
50.75
Neutral
98.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMADY, the sentiment is Neutral. The current price of 75 is above the 20-day moving average (MA) of 60.35, above the 50-day MA of 67.20, and below the 200-day MA of 76.23, indicating a neutral trend. The MACD of -2.47 indicates Negative momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 98.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMADY.
Amadeus IT Group, S.A. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $27.15B | 18.28 | 26.27% | 1.55% | 10.25% | 14.23% | |
71 Outperform | $134.27B | 25.60 | ― | 0.71% | 12.96% | 3.66% | |
71 Outperform | $34.67B | 8.45 | 19.95% | 0.39% | 17.34% | 91.51% | |
62 Neutral | $26.43B | 21.99 | 91.09% | 0.56% | 7.29% | 36.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $5.36B | 112.92 | 13.02% | ― | 14.55% | -68.46% | |
49 Neutral | $466.29M | 1.03 | ― | ― | -3.61% | ― |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.