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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:75Outperform
Price Target:
$70.00
▼(-6.67% Downside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by strong financial performance (durable margins and robust free cash flow) and supportive earnings-call guidance (high single-digit revenue growth and low double-digit EPS growth targets with ongoing shareholder returns). These positives are tempered by weaker technical trends (below key longer-term moving averages with negative MACD) and some fundamental watch items (2025 revenue decline, margin pressure, and the large reported debt shift).
Positive Factors
Sustained Profitability
Sustained net margins near 20% across 2023–2025 indicate durable operating leverage and pricing power in core travel technology services. This margin profile supports reinvestment, consistent profitability through cycles, and underpins shareholder returns even if top-line growth moderates.
Strong Cash Generation
Consistent operating cash flow above €1.4bn and free cash flow closely tracking net income show high earnings quality and conversion. Robust cash generation funds capex, high R&D, dividends and buybacks, giving strategic flexibility to invest in product leadership without overreliance on external financing.
Technology & R&D Leadership
Material R&D spending (22% of revenue), completed cloud migration, strategic AI positioning and partnerships create a durable competitive moat. These capabilities strengthen product differentiation, enable platform-led revenue expansion across airlines and hotels, and reduce future operating risk from legacy infrastructure.
Negative Factors
Top-Line Momentum Risk
A 2025 revenue decline and meaningful gross margin step-down signal vulnerability in sustaining growth and mix improvements. If revenue momentum does not resume, margin targets and midterm CAGR goals may be harder to achieve, pressuring long-term EPS and cash‑flow trajectories.
Reported Debt Shift & Comparability
A sharp reported decline in debt between 2024 and 2025 complicates assessment of leverage and balance sheet durability. Such a discontinuity can mask true financing risk, affect covenant and refinancing visibility, and reduce confidence in long‑term solvency comparisons versus peers.
High Capital Intensity & Elevated Costs
Sustained capex at low double-digit percent of revenue, together with above-normal R&D and cloud-related costs, constrains free cash flow upside and lengthens payback on investments. Persistent capital intensity may limit near-term deleveraging and compress margins versus lower‑capex competitors.
Amadeus IT Group, S.A. (AMADY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.00B
Dividend Yield1.55%
Average Volume (3M)3.63K
Price to Earnings (P/E)18.1
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 Ratio12.29
Price to Book (P/B)5.66
Price to Sales (P/S)4.39
P/FCF Ratio13.67
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue3.25
Enterprise Value/Gross Profit8.00
Enterprise Value/Ebitda8.37
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.14
Revenue Forecast (FY)$8.23B
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
Strong profitability and cash generation (net margins around ~20% and expanding free cash flow), with improved leverage versus earlier years. Offsetting factors include a 2025 revenue decline, a meaningful gross margin step-down, and uncertainty created by the sharp reported shift in debt from 2024 to 2025.Income Statement
Profitability is strong and stable in the post-2021 recovery, with net margins holding around ~20% from 2023–2025 and operating profitability remaining consistently high. Revenue rebounded sharply from 2022–2023, but momentum cooled—2025 revenue declined (-2.7%) after modest growth in 2024, and gross margin fell meaningfully in 2025 versus 2023–2024. Overall, the earnings profile is solid, but top-line growth and gross margin trajectory are key watch items.86
Very Positive
Balance Sheet
Leverage improved materially versus 2020–2022, with debt-to-equity falling from elevated levels (above 1.0 in 2020–2021) to ~0.67 in 2024 and reported at 0.0 in 2025. Equity remains sizable and returns on equity are strong (~25%+ in 2023–2025), signaling good profitability on the capital base. The main caution is the sharp year-over-year change in reported debt (from meaningful debt in 2024 to zero in 2025), which creates uncertainty around capital structure comparability and sustainability.74
Positive
Cash Flow
Cash generation is strong, with operating cash flow consistently exceeding ~€1.4B since 2022 and free cash flow expanding materially in 2025 (up ~24%). Free cash flow is closely aligned with reported earnings in 2025 (free cash flow roughly ~97% of net income), indicating good earnings quality. A weaker point is that operating cash flow has not fully matched accounting profit (operating cash flow to net income below 1.0 across recent years), suggesting some working-capital or non-cash timing effects, though not severe given the solid free cash flow.83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.26B | 6.14B | 5.44B | 4.49B | 2.67B |
| Gross Profit | 2.05B | 2.65B | 2.41B | 1.87B | 834.90M |
| EBITDA | 2.39B | 2.35B | 2.13B | 1.55B | 575.90M |
| Net Income | 1.28B | 1.25B | 1.12B | 664.40M | -142.40M |
Balance Sheet | |||||
| Total Assets | 11.47B | 11.78B | 10.80B | 11.71B | 11.18B |
| Cash, Cash Equivalents and Short-Term Investments | 975.18M | 1.13B | 1.06B | 1.99B | 1.82B |
| Total Debt | 0.00 | 3.38B | 3.31B | 4.41B | 4.98B |
| Total Liabilities | 6.62B | 6.72B | 6.31B | 7.13B | 7.44B |
| Stockholders Equity | 4.85B | 5.06B | 4.48B | 4.58B | 3.75B |
Cash Flow | |||||
| Free Cash Flow | 2.01B | 1.36B | 1.19B | 874.10M | 176.10M |
| Operating Cash Flow | 2.07B | 2.15B | 1.79B | 1.44B | 636.30M |
| Investing Cash Flow | -773.81M | -1.15B | 4.50M | -493.30M | -205.50M |
| Financing Cash Flow | -1.35B | -990.10M | -2.19B | -640.10M | -865.80M |
Amadeus IT Group, S.A. Technical Analysis
Negative
75.00
Price Trends
66.93
Negative
71.11
Negative
76.14
Negative
Market Momentum
-2.27
Negative
43.93
Neutral
85.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMADY, the sentiment is Negative. The current price of 75 is above the 20-day moving average (MA) of 59.96, above the 50-day MA of 66.93, and below the 200-day MA of 76.14, indicating a bearish trend. The MACD of -2.27 indicates Negative momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $26.00B | 18.15 | 26.27% | 1.55% | 10.25% | 14.23% | |
71 Outperform | $132.39B | 25.60 | ― | 0.71% | 12.96% | 3.66% | |
71 Outperform | $34.05B | 8.27 | 19.95% | 0.39% | 17.34% | 91.51% | |
62 Neutral | $26.13B | 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 | $5.31B | 111.86 | 13.02% | ― | 14.55% | -68.46% | |
48 Neutral | $636.22M | 1.40 | ― | ― | -3.61% | ― |
* Technology Sector Average
AMADY
Amadeus IT Group, S.A.
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SABR
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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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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.