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International Consolidated Airlines Group, S.A. (ICAGY)
:ICAGY
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International Consolidated Airlines
(OTC:ICAGY)
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Rating:78Outperform
Price Target:
$12.50
▲(17.59% Upside)
International Consolidated Airlines demonstrates strong financial performance and operational efficiency, supported by a positive earnings call. The stock's valuation suggests it is undervalued, making it an attractive investment opportunity. Technical indicators show neutral to moderate bullish momentum, reinforcing the positive outlook.
International Consolidated Airlines (ICAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.99B
Dividend Yield2.15%
Average Volume (3M)2.83K
Price to Earnings (P/E)7.7
Beta (1Y)1.02
Revenue Growth9.38%
EPS Growth21.02%
CountryUS
Employees52,762
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.68
Shares Outstanding2,292,596,700
10 Day Avg. Volume0
30 Day Avg. Volume2,827
Financial Highlights & Ratios
PEG Ratio3.80
Price to Book (P/B)3.30
Price to Sales (P/S)0.63
P/FCF Ratio5.73
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.62
Revenue Forecast (FY)$38.80B
International Consolidated Airlines Business Overview & Revenue Model
Company DescriptionInternational 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 operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 531 aircraft. The company was incorporated in 2009 and is based in Madrid, Spain.
How the Company Makes MoneyICAGY generates revenue through multiple streams, with the primary source being ticket sales from passenger flights. The company offers various fare classes, including economy, premium economy, business, and first class, catering to different market segments. Ancillary revenue is also significant, comprising fees from baggage, seat selection, and in-flight services. Additionally, ICAGY earns money through its cargo services, transporting goods and freight globally. The company has established strategic partnerships and alliances with other airlines, enabling code-sharing agreements that expand its network and increase passenger load factors. Furthermore, loyalty programs and travel packages contribute to revenue, enhancing customer retention and encouraging repeat business. Economic factors, fuel prices, and travel demand also play critical roles in influencing the company's overall earnings.
International Consolidated Airlines Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 27, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong financial and operational performance for IAG with significant revenue growth and market-leading margins. While there were some challenges, particularly in cargo revenue and certain regional unit revenues, the overall outlook remained positive with expectations of continued strong demand and robust financial performance.Q3-2025 Updates
Positive Updates
Strong Revenue Performance
IAG delivered a passenger revenue increase of EUR 177 million or 2% up, with strong demand for travel and a positive revenue performance in Q4.
Market-Leading Margins
The company reported market-leading margins at 22% for the quarter and over 15% on a last 12 months basis, with each airline reporting margins over 20%.
Strong Operational Performance
The quarter was one of the best summers operationally, supporting positive NPS performance and improved on-time performance across all airlines.
Balance Sheet Strength
Gross leverage reduced to 1.9x from 2.6x last year, and net leverage decreased to 0.8x, with plans for further capital returns to shareholders.
Positive Outlook for Q4
IAG is booked positively for Q4, including for the North Atlantic, with expectations of strong demand and revenue performance.
Negative Updates
Cargo Revenue Decline
Cargo revenue decreased slightly due to cycling over elevated yields from the Red Sea disruption in 2024.
Softness in North Atlantic Unit Revenue
North Atlantic unit revenue decreased by 7.1% with part of this due to currency headwinds and softness in U.S. point-of-sale economy leisure.
Vueling Profit Decline
Vueling's operating profit was EUR 20 million lower at EUR 272 million, with weaker demand in Benelux, Germany, and the U.K.
British Airways Profit Decline
British Airways saw its operating profits decline slightly by GBP 18 million, with unit revenues falling 1%.
Company Guidance
During the International Airlines Group (IAG) third-quarter 2025 results call, the company provided several key metrics and insights into their performance and future guidance. IAG reported a market-leading operating margin of 22% for the quarter and over 15% on a last 12 months basis, highlighting robust demand for travel and effective cost control. Every airline in the group achieved a margin above 20%. The company announced a passenger revenue increase of EUR 177 million, or 2%, despite an EUR 8 million FX headwind impacting overall profit. Cargo revenue saw a slight decline, while nonfuel costs improved quarter-on-quarter, partially offset by lower fuel prices. IAG's balance sheet remains strong, with gross leverage reduced to 1.9x and net leverage at 0.8x. The company declared an interim dividend of EUR 220 million and plans to announce further returns of excess cash to shareholders at the full-year results in February. Looking ahead, IAG maintained its positive outlook for the remainder of the year, with Q4 booked positively, including revenue performance in the North Atlantic. The company also shared that nonfuel unit costs are expected to increase around 3% for the year, in line with previous guidance.International Consolidated Airlines Financial Statement Overview
Summary
International Consolidated Airlines has shown strong financial recovery with significant revenue and profit growth. The company demonstrates robust operational efficiency and profitability, supported by effective cash flow management. However, the high debt-to-equity ratio suggests a need for prudent financial management to ensure long-term stability.Income Statement
International Consolidated Airlines has demonstrated a substantial recovery in its financial performance, with total revenue growing from $29.45 billion in 2023 to $32.1 billion in 2024, resulting in a revenue growth rate of 8.73%. The gross profit margin stands at 23.61%, while the net profit margin is 8.51%, indicating strong profitability relative to revenue. The EBIT margin of 13.34% and EBITDA margin of 21.27% further highlight efficient operations and cost management. These metrics reflect robust profitability and a positive growth trajectory, positioning the company strongly in the transportation sector.85
Very Positive
Balance Sheet
The company's balance sheet is marked by a relatively high debt-to-equity ratio of 2.81, reflecting significant leverage, which poses potential risks in terms of financial stability. However, the return on equity (ROE) is impressive at 44.26%, signaling effective use of equity to generate profits. The equity ratio of 14.09% indicates a moderate level of shareholder equity in relation to total assets. The company's ability to manage its liabilities and equity efficiently is evident, though the high leverage warrants careful monitoring to mitigate risks.72
Positive
Cash Flow
International Consolidated Airlines showcases strong cash flow management, with a free cash flow growth rate of 169.39% from 2023 to 2024. The operating cash flow to net income ratio is 2.33, reflecting robust cash generation relative to net income, while the free cash flow to net income ratio of 1.30 indicates healthy cash flow available for investment and debt repayment. These metrics underscore the company's strong cash position and ability to support its operations and strategic initiatives.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.28B | 32.10B | 29.45B | 23.07B | 8.46B | 7.81B |
| Gross Profit | 8.13B | 7.58B | 7.91B | 5.36B | 164.00M | -1.10B |
| EBITDA | 6.05B | 6.83B | 4.43B | 2.20B | -2.25B | -3.56B |
| Net Income | 3.13B | 2.73B | 2.65B | 431.00M | -2.93B | -6.93B |
Balance Sheet | ||||||
| Total Assets | 43.99B | 43.80B | 37.68B | 39.30B | 34.41B | 30.26B |
| Cash, Cash Equivalents and Short-Term Investments | 9.35B | 9.80B | 6.81B | 9.57B | 7.91B | 5.88B |
| Total Debt | 14.81B | 17.34B | 16.08B | 19.98B | 19.61B | 15.68B |
| Total Liabilities | 38.03B | 37.63B | 34.40B | 37.28B | 33.56B | 28.95B |
| Stockholders Equity | 5.95B | 6.17B | 3.27B | 2.02B | 840.00M | 1.60B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.56B | 1.32B | 960.00M | -885.00M | -5.24B |
| Operating Cash Flow | 0.00 | 6.37B | 4.86B | 4.83B | -141.00M | -3.30B |
| Investing Cash Flow | 0.00 | -2.50B | -3.42B | -3.46B | -181.00M | 1.56B |
| Financing Cash Flow | 0.00 | -1.18B | -5.19B | -56.00M | 2.23B | 3.81B |
International Consolidated Airlines Technical Analysis
Negative
10.63
Price Trends
10.59
Negative
10.25
Negative
9.03
Positive
Market Momentum
0.01
Positive
30.00
Positive
25.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAGY, the sentiment is Negative. The current price of 10.63 is below the 20-day moving average (MA) of 10.80, above the 50-day MA of 10.59, and above the 200-day MA of 9.03, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 30.00 is Positive, neither overbought nor oversold. The STOCH value of 25.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $32.58B | 12.18 | 28.67% | 1.56% | 14.75% | 71.73% | |
78 Outperform | $24.99B | 7.73 | 56.20% | 2.15% | 9.38% | 21.02% | |
78 Outperform | $38.22B | 8.25 | 28.52% | 1.15% | 4.33% | -1.58% | |
68 Neutral | $31.29B | 9.59 | 25.59% | ― | 4.24% | 20.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.86B | 15.81 | ― | ― | 1.27% | 118.64% | |
61 Neutral | $16.35B | 48.19 | 4.22% | 2.22% | 0.65% | ― |
* Industrials Sector Average
ICAGY
International Consolidated Airlines
9.63
3.66
61.21%
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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.
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.