AMC Poised for 'Multiyear Recovery' Fueled by Strong 2025 Film Slate, Says Analyst

AMC Entertainment Holdings Inc. (AMC) is set to experience a multiyear recovery, driven by a robust film slate in 2025, according to Benchmark analyst Mike Hickey. The domestic box office delivered $8.56 billion in 2024, down 3.9% from 2023 but still surpassing expectations. Benchmark estimates that the domestic box office will deliver $9.5 billion in 2025, marking an 11% increase from last year.

The strong film slate for 2025 includes highly anticipated sequels and reboots such as "Mission: Impossible 8," "Jurassic World 4," and "Avatar 3," as well as new releases like director James Gunn's "Superman," Marvel's "The Fantastic Four: First Steps," and Walt Disney Co.'s (DIS) "Zootopia 2." AMC has benefited from an improving box office, with record-breaking attendance over the Thanksgiving holiday in 2024 and better-than-expected third-quarter results. The company's "Go Plan" is a major investment effort to boost the moviegoing experience at its theaters, allocating $1.0 billion to $1.5 billion over the next four to seven years.

AMC's efforts to diversify revenue streams, such as its expanding home popcorn business, alongside operational efficiencies, are key factors supporting long-term financial stability. Benchmark has a hold rating for AMC. Last month, AMC announced its latest equity raise, with CEO Adam Aron addressing angry shareholders over the sale of almost $184 million of stock. As of the third quarter, AMC had long-term debt of approximately $4.5 billion following its debt-reduction efforts. The company moved to push $2.4 billion of its long-term debt out from 2026 to 2029 and 2030, reducing near-term refinancing risk. AMC lowered its total debt by approximately $349 million in 2024 through buybacks and exchanges, expecting positive operating cash flow in Q4 2024.

AMC reports fourth-quarter results after market close on Feb. 25. With a strong film slate and strategic initiatives in place, AMC is well-positioned for a multiyear recovery in the coming years.