TUI Group has reported its strongest full-year earnings to date, beating upgraded guidance and setting out expectations for further growth in 2026, alongside a reinstated dividend.
For the year to September 30, 2025, the world’s largest integrated tourism group delivered a record underlying EBIT of €1.46bn on a constant-currency basis.
This was 12.6% higher than in the same period last year, and well above the 9–11% growth range that the company guided in August.
At actual rates, underlying EBIT rose 9% to €1.41bn, while revenue increased 4.4% to €24.2bn.
The results were driven by continued strength across TUI’s Holiday Experiences division — which covers Hotels & Resorts, Cruises, and TUI Musement — despite a weak performance by its Markets & Airline unit.
Hotels & Resorts posted another record result, with EBIT up 10% to €735m, benefiting from higher rates and occupancy.
Cruises delivered a 29% jump in EBIT to €208 million, on the back of capacity growth and buoyant demand, while TUI Musement saw its EBIT rise 37% to €61 million as volumes expanded.
Markets & Airline EBIT fell 34% to €640 million, with the group citing cost pressures and heavy investment in the division’s overhaul.
Group net profit after minorities rose 25% to €636m, with underlying EPS up 30% to €1.34.
Customer volumes climbed 5% to 34.7 million, helped by growth in dynamic packaging and a broader experiences portfolio.
Free cash flow improved to €358m, and net debt fell by €300 million to €1.3bn, reducing leverage from 0.8x to 0.6x.
Rating upgrades from S&P, Moody’s and Fitch during the year returned TUI to BB/Ba territory.
With its balance sheet strengthened, TUI also announced a new dividend policy.
For FY25, the group will propose a starter dividend of €0.10 per share, followed from FY26 by a 10–20% payout ratio of underlying EPS, aiming to balance shareholder returns with investment capacity and further deleveraging.
The company said trading remains “robust” despite a competitive market backdrop.
In Markets & Airline, booked revenue for Winter 2025/26 is up 1%, with stronger recent demand around Black Friday and encouraging early bookings for Summer 2026.
For FY26, TUI expects revenue growth of 2–4% and underlying EBIT growth of 7–10%, driven by the key summer season.
The Group reaffirmed its mid-term ambitions of 7–10% annual EBIT growth, net leverage below 0.5x, and its new dividend payout framework.