Amadeus IT Group SA
(CHIX:AMSe)
€
53.87
+0.90 (+1.7%)
Market Cap: 22.87 Bil
Enterprise Value: 25.49 Bil
PE Ratio: 17.68
PB Ratio: 4.75
GF Score: 82/100 
Half Year 2026 Amadeus IT Group SA Earnings Call Transcript
Jul 31, 2026 / 11:00AM GMT
Key Points
Positve
- Amadeus IT Group SA (AMADF) delivered solid H1 2026 results with 5% constant currency revenue growth and 5% adjusted EBIT growth, demonstrating resilience despite a challenging macro environment.
- The company's diversified business model is proving effective, with strong growth in Hospitality and Other Solutions (9.2% constant currency) and Air IT Solutions (8.7% constant currency), offsetting softer Air Distribution performance.
- Commercial momentum remains robust, highlighted by a new Altea PSS customer (an airline group with over 40 million passengers annually), expanded Nevio engagements (25 airlines), and new NDC agreements with carriers like Alaska Airlines and Royal Air Maroc.
- Amadeus IT Group SA (AMADF) is advancing its AI strategy with tangible actions, including becoming a founding partner of Google's Universal Commerce Protocol for lodging and launching the Amadeus Travel Advertising Platform with Accenture.
- The company maintains strong financial discipline, with free cash flow of EUR472 million, leverage at 1x net debt to EBITDA, and a completed EUR500 million share repurchase program.
- Air IT Solutions revenue per PB grew 7.5% in H1, driven by Nevio portfolio contributions, renewals, and upselling, indicating strong pricing power and customer value.
- Hospitality and Other Solutions continues to deliver fast growth, with new customer implementations (Marriott, Accor) and payments expansion (B2B Wallet, Outpayce) driving momentum.
- The company is seeing early signs of recovery in July, with bookings broadly flat and PB growth close to 1%, improving from June performance.
- Amadeus IT Group SA (AMADF) is well-positioned as a neutral orchestrator in the AI-enabled travel ecosystem, with deep integration and global scale that differentiates it from competitors.
- The company's revised 2026 outlook remains positive, with expectations for mid-to-high single-digit revenue growth and high single to low double-digit adjusted EPS growth, supported by cost-containment measures.
Negative
- Amadeus IT Group SA (AMADF) revised its 2026 outlook downward due to the challenging Middle East geopolitical situation, which has impacted air traffic and bookings, leading to wider-than-typical guidance ranges.
- Air Distribution bookings declined 3.7% in H1, with a significant deceleration since March due to the Middle East conflict, causing cancellations and reduced new bookings.
- The company faces uncertainty in the short term, with IATA's global air traffic growth assumption for 2026 reduced to 1.9% from 4.4% in December, reflecting a challenging environment.
- Air IT Solutions PB growth was moderated by the Middle East disruption, with a 1.1% increase in H1, and the company expects a softer PB growth assumption for the full year.
- Cost of revenue increased 2.2% due to higher transaction volumes in hotel distribution and payments, while D&A expenses rose 6.4% due to higher amortization of internally developed software.
- The company is incurring one-off costs related to the decommissioning of an idle data center in Erding, which will run off by the end of the year but currently distort results.
- Personnel costs are down year-on-year, but this is due to tactical cost-containment measures and contractor reductions, not structural AI-driven efficiencies, and FX benefits will not continue.
- The Air IT Solutions contribution margin is expected to be diluted in H2 due to a mix shift towards lower-margin Airport IT and professional services revenue.
- The company faces challenges from direct connections between large suppliers and TMCs, though it views these as limited and not a general trend.
- The macro and geopolitical contexts make short-term predictions difficult, and the company acknowledges that if the situation deteriorates, the revised outlook may not be achievable.
Luis Maroto Camino
Amadeus IT Group SA - Chief Executive Officer, Executive Director
Yes, excluding the COVID period. Despite the challenging environment, we continued to see commercial momentum. Overall, we are pleased with our performance in the first half, demonstrating the strength and resilience of our diversified business. In the first half, at constant currency, Amadeus delivered 5% revenue growth and 5% adjusted EBIT growth, while adjusted diluted EPS increased 7%.
We continue to deliver solid unitary revenue growth. Hospitality and Other Solutions continues to deliver against our strategy. Commercial momentum remained strong throughout the second quarter. We expanded our customer base across our segments, increased adoption of our solutions and continued to cross-sell more solutions.
As always, we remain focused on delivering long-term growth and investing with conviction for the future. As a leader in travel technology, our goal is to be a neutral embedded orchestrator in an AI-enabled travel ecosystem. We continue to advance our AI roadmap, working closely with our customers
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