Saga (LON:SAGA) Posts Earnings Results

Key Points

• Saga delivered stronger-than-expected full-year results with Underlying PBT of £44.2m (+19%), underlying revenue up 11% and available operating cash flow of £205.9m (+88%).
• Travel is now the group's largest profit driver — Ocean Cruise posted Underlying PBT of £67.3m (+38%) with a 93% load factor, higher per diems and strong forward bookings/pricing into 2026/27.
• The insurance model was simplified through the sale of AICL and an Ageas partnership (including a £60m upfront payment), while refinancing materially strengthened the balance sheet: net debt fell to £499.5m (‑£93.3m), leverage is now 3.7x and £150m of undrawn facilities remain.

Saga (LON:SAGA - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported GBX (2.90) EPS for the quarter, Digital Look Earnings reports. Saga had a negative net margin of 12.16% and a negative return on equity of 106.78%. The company had revenue of £660 million for the quarter.

Here are the key takeaways from Saga's conference call:

• Saga delivered a stronger-than-expected full-year financial performance with Underlying PBT of £44.2m (+19%), underlying revenue +11% and available operating cash flow of £205.9m (+88%).
• Travel is now the group's largest profit driver—Ocean Cruise posted Underlying PBT of £67.3m (+38%) with 93% load factor and higher per diems, and forward bookings/pricing remain strong into 2026/27.
• The insurance model has been simplified via the sale of AICL and the Ageas partnership, reducing underwriting risk, providing a £60m upfront payment and converting insurance into a more predictable, commission-based income stream.
• Balance sheet strength improved materially after refinancing to a 2031 facility, net debt fell to £499.5m (‑£93.3m) and leverage reduced to 3.7x, with access to an additional £150m undrawn committed facilities.
• Finance costs rose this year due to the HPS refinancing (blended pro forma rate ~7.6%), and the group incurred higher marketing and restructuring costs, although management expects finance costs to be marginally lower in 2026/27.

Saga Price Performance

LON SAGA opened at GBX 625 on Wednesday. Saga has a 12 month low of GBX 129.79 and a 12 month high of GBX 652.92. The company has a debt-to-equity ratio of 1,149.32, a current ratio of 1.16 and a quick ratio of 0.67. The firm has a market capitalization of £899.72 million, a PE ratio of -14.24, a P/E/G ratio of 1.22 and a beta of 1.96. The company's 50 day simple moving average is GBX 520.13 and its 200 day simple moving average is GBX 396.80.

Saga Company Profile

Saga exists to deliver exceptional experiences for our customers every day, whilst being a driver of positive change in our markets and communities.

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