International Consolidated Airlines Group, S.A. (ICAGY)
OTHER OTC:ICAGY
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International Consolidated Airlines
(OTC:ICAGY)
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Rating:72Outperform
Price Target:
$10.00
▼(-4.40% Downside)
Action:ReiteratedDate:03/02/26
The score is driven mainly by solid fundamentals (improved profitability and strong free cash flow) and supportive earnings-call performance and capital returns. Attractive valuation helps, while the overall score is tempered by balance-sheet leverage risk and a mixed short-term technical picture.
Positive Factors
Consistent free cash flow
IAG has produced sustained positive free cash flow through 2022–2025 and reported EUR3.1bn FCF in 2025. Durable cash generation supports reinvestment, shareholder distributions and liquidity buffers, reducing refinancing risk in a cyclical aviation industry.
Negative Factors
Elevated leverage
Leverage remains a material overhang: though equity strengthened post‑pandemic, debt levels rose in 2025 and historical debt-to-equity was ~2.8x in 2024. High leverage in a cyclical airline raises refinancing and downside risk if demand or yields weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent free cash flow
IAG has produced sustained positive free cash flow through 2022–2025 and reported EUR3.1bn FCF in 2025. Durable cash generation supports reinvestment, shareholder distributions and liquidity buffers, reducing refinancing risk in a cyclical aviation industry.
Read all positive factors
International Consolidated Airlines (ICAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.59B
Dividend Yield2.05%
Average Volume (3M)41.09K
Price to Earnings (P/E)6.9
Beta (1Y)1.12
Revenue Growth9.38%
EPS Growth21.02%
CountryUS
Employees52,762
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.34
Shares Outstanding2,256,623,500
10 Day Avg. Volume97,622
30 Day Avg. Volume41,095
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)2.90
Price to Sales (P/S)0.69
P/FCF Ratio7.28
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda2.95
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)1.65
Revenue Forecast (FY)$40.45B
International Consolidated Airlines Business Overview & Revenue Model
Company Description
International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company o...
How the Company Makes Money
IAG primarily makes money by selling air transportation and related services through its operating airlines. Its main revenue stream is passenger revenue from ticket sales across cabins (e.g., economy and premium cabins) on short-haul and long-hau...
International Consolidated Airlines 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 conveys a strongly positive financial and operational story: record operating profit, elevated margins (15.1%), high ROIC (18.5%), substantial free cash flow, strong liquidity and expanded shareholder returns. Operational improvements (OTP, NPS) and loyalty growth underpin durable earnings. Offsetting risks include fuel price volatility, FX headwinds to revenue in 2026, specific engine/technical disruption affecting capacity, rising ownership and employee costs, and a multi-year CapEx ramp that increases execution risk. On balance, the positive achievements and robust balance-sheet position outweigh the challenges, while management acknowledges and outlines mitigation for headwinds.Positive Updates
Record Financial Results
Operating profit EUR 5.024 billion (up EUR 581 million YoY); operating margin 15.1% (up 1.3 percentage points YoY); adjusted profit after tax EUR 3.3 billion (up 17% YoY).
Negative Updates
Fuel Price Volatility and Carbon Cost Headwinds
Fuel bill estimate increased from ~EUR 7.0 billion to ~EUR 7.4 billion since year-end due to Middle East tensions; carbon-related costs (ETS and CORSIA) added roughly EUR 150 million YoY.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Results
Operating profit EUR 5.024 billion (up EUR 581 million YoY); operating margin 15.1% (up 1.3 percentage points YoY); adjusted profit after tax EUR 3.3 billion (up 17% YoY).
Read all positive updates
Company Guidance
IAG guided to around 3% capacity growth in 2026 (2–4% medium term) with 17 aircraft deliveries next year and CapEx of ~EUR3.6bn (rising to ~EUR4.9bn in 2027–28 and ~EUR5.6bn in 2029–31 before normalising to ~EUR4.5bn from 2032), noting 71 wide‑body aircraft ordered (≈70% replacements); financially they reported record 2025 operating profit EUR5.024bn (+EUR581m), operating margin 15.1%, adjusted profit after tax EUR3.3bn (+17%), adjusted EPS +22.4%, ROIC 18.5%, free cash flow EUR3.1bn after EUR3.4bn CapEx, net debt leverage 0.8x (gross 1.9x) and liquidity >EUR10bn; fuel hedging was 62% at 31‑Dec (Dec curve implied fuel bill ~EUR7.0bn, current forward curve ~EUR7.4bn) and ETS/CORSIA costs up ~EUR150m; capital allocation: total 2025 dividend EUR448m, share count reduced 4.3% by buybacks, EUR1.5bn excess cash return announced, excess‑cash distribution range widened to 1–1.5x net leverage while targeting net leverage <1.8x and gross 1.5–2x; cost guidance: total unit costs improved 0.4% in 2025, non‑fuel unit costs +2.8% (in line with guidance) and for 2026 expect non‑fuel unit costs ~‑1% (≈+1% on a constant‑currency basis).International Consolidated Airlines Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.90B | 32.10B | 29.45B | 23.07B | 8.46B |
| Gross Profit | 6.82B | 7.58B | 7.91B | 5.36B | 164.00M |
| EBITDA | 7.34B | 6.83B | 4.43B | 2.20B | -2.25B |
| Net Income | 3.21B | 2.73B | 2.65B | 431.00M | -2.93B |
Balance Sheet | |||||
| Total Assets | 42.83B | 43.80B | 37.68B | 39.30B | 34.41B |
| Cash, Cash Equivalents and Short-Term Investments | 8.32B | 9.80B | 6.81B | 9.57B | 7.91B |
| Total Debt | 19.86B | 17.34B | 16.08B | 19.98B | 19.61B |
| Total Liabilities | 35.24B | 37.63B | 34.40B | 37.28B | 33.56B |
| Stockholders Equity | 7.58B | 6.17B | 3.27B | 2.02B | 840.00M |
Cash Flow | |||||
| Free Cash Flow | 3.02B | 3.56B | 1.32B | 960.00M | -885.00M |
| Operating Cash Flow | 6.33B | 6.37B | 4.86B | 4.83B | -141.00M |
| Investing Cash Flow | -2.66B | -2.50B | -3.42B | -3.46B | -181.00M |
| Financing Cash Flow | -4.24B | -1.18B | -5.19B | -56.00M | 2.23B |
International Consolidated Airlines Technical Analysis
Positive
10.46
Price Trends
10.61
Negative
10.74
Negative
10.48
Negative
Market Momentum
-0.06
Negative
57.11
Neutral
97.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAGY, the sentiment is Positive. The current price of 10.46 is above the 20-day moving average (MA) of 9.64, below the 50-day MA of 10.61, and below the 200-day MA of 10.48, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 97.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICAGY.
International Consolidated Airlines Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $31.88B | 269.96 | 27.85% | 1.37% | 14.75% | 71.73% | |
72 Outperform | $23.59B | 6.85 | 73.24% | 2.05% | 9.38% | 21.02% | |
72 Outperform | $44.56B | -37.50 | 23.14% | 0.96% | 4.33% | -1.58% | |
68 Neutral | $31.18B | 10.91 | 24.13% | ― | 4.24% | 20.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $19.43B | 50.61 | 5.33% | 1.73% | 0.65% | ― | |
46 Neutral | $7.47B | 25.57 | -2.76% | ― | 1.27% | 118.64% |
* Industrials Sector Average
ICAGY
International Consolidated Airlines
10.46
4.12
64.93%
DAL
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67.82
28.01
70.35%
RYAAY
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62.36
18.36
41.73%
LUV
Southwest Airlines
39.56
14.51
57.91%
UAL
United Airlines Holdings
96.40
30.71
46.75%
AAL
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11.32
1.74
18.16%
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.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower 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.
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.