Amadeus IT Group S.A. - ADR

Strong Q1 Performance: Amadeus reported a 9% increase in group revenue for Q1 2025, with operating income and profit growing by 10% and 13%, respectively. Free cash flow generation was €262 million, and leverage stood at 0.8 times net debt-to-last 12 months EBITDA.

Mixed Distribution Outlook: The company faces uncertainty in the global air traffic growth outlook for 2025, primarily due to macroeconomic conditions impacting the U.S. market. Despite this, Amadeus remains confident in its capacity to meet its guidance, anticipating earnings growth in the 7.4% to 11.4% range based on a potential Level of airline capacity and NDC adoption.

NDC Strategy Developments: Amadeus continues to expand its NDC strategy with 70 signed agreements, including new airlines such as Frontier and Viva. The company aims to be a leader in distributing NDC content, which could enhance its market share and revenue potential through increased onboarding of low-cost carriers.