Amadeus IT (AMS) | News Based Sentiment Analysis

• On September 4, 2025, Amadeus announced a significant partnership with Scandic Hotels, the largest hotel chain in Scandinavia, marking the first enterprise-level adoption of Agency360® in the region. This collaboration will provide Scandic Hotels with comprehensive data insights to improve demand and productivity across its 280 properties, demonstrating Amadeus’s growing reach within the hospitality sector.
• Perth Airport is upgrading its passenger experience with Amadeus, as announced on September 12, 2025, by implementing approximately 100 new self-service check-in kiosks and replacing 40 traditional counters with Amadeus bag drop units. This builds on a collaboration that began in 2015 and included biometric trials in 2022, aiming for a seamless, contactless journey for travelers.
• Analysts assessed Amadeus IT Group as 11.2% undervalued as of September 9, 2025, based on expectations of continued global travel growth, particularly a projected 10% increase in passenger boarded in the Asia Pacific region. However, alternative market price ratio perspectives suggest the stock may be trading at fair value.
• Amadeus’s price-to-earnings (P/E) ratio currently stands at 23.8x (as of September 1, 2025), exceeding that of nearly half of all companies in Spain. While the company experienced strong EPS growth of 9.1% last year and 405% over the past three years, analysts forecast a slower EPS growth rate of 7.7% annually over the next three years, compared to a market prediction of 11%.
• Amadeus continued its share buyback program, purchasing 444,742 shares between August 27 and September 2, 2025, bringing the total shares repurchased to 10,878,657 since the program’s launch in March 2025. The program has a maximum investment amount of €1.3 billion, demonstrating a commitment to returning capital to shareholders.
• The company’s H1 2025 results, reviewed on September 9, 2025, showed solid revenue growth but also highlighted margin pressure due to rising cloud and staff costs, with capital expenditures increasing to 12.1% of revenues and R&D expenses rising to 22.3%. This impacted free cash flow, a key metric for investors.

The Investment Story: September saw Amadeus expanding its partnerships and upgrading infrastructure, but also facing increasing costs and a potentially slowing earnings growth rate, creating a mixed picture for investors.

What It Means for Investors: While the company continues to invest in growth through partnerships and technology, the rising costs and slower projected EPS growth warrant careful consideration. The share buyback program offers some downside protection, but investors should monitor margin pressures closely.

Looking Ahead: Investors should focus on the progress of cloud migration and AI initiatives, as well as the impact of cost increases on future earnings. The success of the biometric system at Perth Airport and the Agency360® rollout with Scandic Hotels will be key indicators.

The Bottom Line: Amadeus remains a strong player in the travel technology sector, but balancing growth investments with profitability will be crucial. The mixed signals regarding valuation and earnings growth suggest a cautious approach is warranted.