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1. Company Snapshot

1.a. Company Description

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide.The company operates through two segments, Distribution and IT Solutions.The company acts as an international network providing real-time search, pricing, booking, and ticketing services.


It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control.In addition, the company is involved in the provision of software development and definition, distribution, regional support, data processing, intermediation, consulting, installation of industrial machinery and equipment, and information technology services; financial activities; and e-commerce business.It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, road and sea transport companies, travel sellers and brokers, travel buyers, and ground handlers.


The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016.Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.

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1.b. Last Insights on AMS

Amadeus IT Group's recent struggles stem from the AI disruption trade, which has led to a decline in travel and leisure stocks. The company's valuation is being reassessed due to its current challenges. Additionally, the US threat to retaliate against EU firms over digital tax has created uncertainty, with Amadeus IT Group being named as one of the affected companies.

1.c. Company Highlights

2. Amadeus' Strong 2025 Performance Sets Stage for Continued Growth

Amadeus reported a robust Q4 2025 performance, with revenue growth of 10% and adjusted EBIT growth of 15% at constant currency. For the full year, revenue reached €6,517 million, a 9% increase, while adjusted EBIT grew 10% to €1,894 million. The company's free cash flow generation was €1.3 billion, 7% above 2024 levels. Earnings per share (EPS) growth has been consistent, with an 8.6% increase at constant currency over the last 12 months. The current P/E Ratio of 17.14 suggests the market has already priced in some level of growth.

Publication Date: Mar -01

📋 Highlights
  • 2025 Financial Performance: Full-year revenue rose 9% to €6,517M; adjusted EBIT grew 10% to €1,894M, with free cash flow up 7% to €1.3B.
  • Strategic AI Investments: €2.5B in inference generated via machine learning for flight search; Agentic AI integration positions Amadeus as a leader in AI-enabled travel orchestration.
  • Customer Expansion & Product Adoption: Lufthansa Group adopted Nevio; TUI Airlines and Volotea selected Navitaire Stratos, driving 8.7% Air IT Solutions revenue growth.
  • 2026 Guidance: High single-digit revenue growth; free cash flow forecasted at €1.35–1.45B, with capital expenditure at 10–12% of revenue.
  • Shareholder Returns: €700M dividend at policy’s top end; €500M share buyback program launched, reflecting disciplined capital allocation amid €1.3B repurchase in Q4 2025.

Segment Performance

The Air IT Solutions segment saw revenue growth of 8.7%, driven by a 3.8% increase in Amadeus PBs and a 4.7% higher revenue per PB. Hospitality and Other Solutions revenue grew by 9.6%, driven by customer implementations and increased transaction volumes. Air Distribution revenue increased by 8%, driven by 2.8% increased booking volumes and a revenue per booking growth of 5%. These strong segment performances were key contributors to the company's overall revenue growth.

Guidance and Outlook

For 2026, Amadeus expects group revenue to grow at a high single-digit rate, supported by strong evolutions across all segments, and a stable adjusted EBIT margin performance. The company forecasts free cash flow between €1.35 billion and €1.45 billion, with capital expenditure as a percentage of revenue between 10% and 12%. This guidance indicates continued momentum in the company's growth trajectory.

AI and Innovation

Amadeus is leveraging AI to enhance its offerings, with a focus on becoming the orchestration layer in the AI-enabled travel ecosystem. The company has embedded AI across its portfolio and is engaging with major AI platforms like Google and Microsoft. As Decius Valmorbida noted, Amadeus is uniquely positioned to leverage AI due to its trusted system of record, integrated business logic, and global scale. The acquisition of Skylink is expected to further enhance productivity for travel management companies through conversational AI capabilities.

Valuation and Returns

With a ROE of 25.78% and ROIC of 16.17%, Amadeus demonstrates strong profitability. The current valuation metrics, including a P/B Ratio of 4.72 and EV/EBITDA of 8.59, suggest a reasonable valuation. The dividend yield of 2.5% and free cash flow yield of 4.79% provide a decent return for shareholders. The company's commitment to driving shareholder value through earnings growth and a balanced approach to capital allocation is evident in its plans for a new share repurchase program of €500 million.

3. NewsRoom

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Is Amadeus IT Group (BME:AMS) Pricing Reflect Its Recent Share Price Slide And DCF Estimate

Mar -01

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Amadeus IT Group SA (AMADF) (Q4 2025) Earnings Call Highlights: Strong Revenue Growth and ...

Feb -27

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Amadeus IT Group SA Unsponsored ADR (AMADY) Q4 Earnings and Revenues Beat Estimates

Feb -27

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AI Disruption Trade Drives Divide in Travel and Leisure Stocks

Feb -13

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Aurora Innovation, Inc. (AUR) Reports Q4 Loss, Misses Revenue Estimates

Feb -11

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Reassessing Amadeus IT Group (BME:AMS) Valuation After Recent Share Price Weakness

Feb -08

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Coursera (COUR) Meets Q4 Earnings Estimates

Feb -05

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FTSE and European firms worst hit by software sell-off

Feb -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.10%)

6. Segments

Air Distribution

Expected Growth: None%

None

Air IT Solutions

Expected Growth: None%

None

Hospitality & Other Solutions

Expected Growth: 8.8%

The hospitality industry is expected to continue its recovery from the pandemic, driving growth in this segment, while other industries will experience moderate growth.

7. Detailed Products

Amadeus Altéa PSS

A comprehensive passenger service system that enables airlines to manage their sales, inventory, and departure control activities.

Amadeus Selling Platform

A travel agency platform that enables travel agents to search, price, and book travel content from a wide range of suppliers.

Amadeus Travel Platform

A comprehensive travel platform that enables travel agencies to manage their operations, including booking, ticketing, and back-office functions.

Amadeus Hotel Distribution

A hotel distribution system that enables hotels to distribute their inventory to a wide range of travel agencies and online travel agencies.

Amadeus Car Rental Distribution

A car rental distribution system that enables car rental companies to distribute their inventory to a wide range of travel agencies and online travel agencies.

Amadeus Airport IT

A suite of airport IT solutions that enables airports to manage their operations, including passenger processing, baggage handling, and airport operations.

Amadeus Revenue Management

A revenue management system that enables airlines to optimize their revenue through advanced forecasting and pricing techniques.

Amadeus Data Analytics

A data analytics platform that enables airlines and travel agencies to gain insights into their operations and make data-driven decisions.

8. Amadeus IT Group, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Amadeus IT Group, S.A. operates in a highly competitive industry, but its strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Amadeus IT Group, S.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Amadeus IT Group, S.A. relies on a few key suppliers for its technology and infrastructure, giving them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The travel technology industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants to Amadeus IT Group, S.A.'s business.

Intensity Of Rivalry

The travel technology industry is highly competitive, with several established players competing for market share. Amadeus IT Group, S.A. faces intense competition from companies such as Sabre and Travelport.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.47%
Debt Cost 3.95%
Equity Weight 57.53%
Equity Cost 10.17%
WACC 7.53%
Leverage 73.81%

11. Quality Control: Amadeus IT Group, S.A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mercedes-Benz

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Value: 8.7

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 7.3

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VW

A-Score: 6.3/10

Value: 9.8

Growth: 3.4

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Yield: 9.4

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A-Score: 5.9/10

Value: 7.2

Growth: 5.6

Quality: 2.6

Yield: 8.1

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Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

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Amadeus IT

A-Score: 5.3/10

Value: 3.1

Growth: 6.2

Quality: 8.3

Yield: 2.5

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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A-Score: 5.2/10

Value: 1.6

Growth: 6.2

Quality: 8.1

Yield: 5.0

Momentum: 3.0

Volatility: 7.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

52.94$

Current Price

52.94$

Potential

-0.00%

Expected Cash-Flows