Q4 2025 Sabre Corp Earnings Call Transcript
Key Points
- Sabre Corp (SABR) recorded double-digit year-on-year growth in normalized adjusted EBITDA and generated positive pro forma free cash flow for 2025.
- The company paid off over $1 billion in debt, reducing its pro forma net leverage by approximately 25% compared to year-end 2024.
- Sabre Corp (SABR) ended the year with a strong cash balance of $910 million, providing significant room for continued investment and growth.
- The company launched several industry-first AI solutions and partnerships, positioning itself as a leader in AI infrastructure for travel.
- Sabre Corp (SABR) expects mid-single-digit volume growth in 2026, driven by continued share gains, growth of NDC bookings, and the launch of its multi-source low-cost carrier solution.
- The company faced challenges in 2025 due to exogenous events impacting operational results.
- Fourth-quarter air distribution bookings grew 4% year-on-year, below the guidance of 6 to 8% due to broader impacts from the US government shutdown.
- Pro forma free cash flow for 2026 is expected to be negative $70 million, primarily due to $60 million in restructuring costs.
- The company anticipates 2026 pro forma gross margin to be in the range of 56 to 57%, slightly lower due to changes in mix and FX pressure.
- Sabre Corp (SABR) faces potential risks from AI disintermediation, although it believes its foundational transaction layer is essential for AI operations.
Good morning and welcome to the Sabres full year and fourth quarter 2025 earnings conference call. My name is Olivia and I'll be your operator. As a reminder, please note today's call is being recorded.
I will now turn the call over to the senior Vice President of finance, Roshan Zennu.
Please go ahead, sir.
Good morning and welcome to our full year and 4th quarter 2025 earnings call. This morning we issued an earnings press release which is available on our website at investors.saber.com. A slide presentation which accompanies today's prepared remarks is also available during this call on the Saber Investor relations web page. A replay of today's call will be available on our website later this morning.
We advise you that our comments contain forward-looking statements that represent our beliefs or expectations about future events, including results of our growth strategies, our AI offerings, and AI related developments in the industry, transactions and bookings growth,
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