Sabre 2025 Q1 Earnings Strong Turnaround as Net Income Swings 150%

Sabre (SABR) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Sabre's fiscal 2025 Q1 results marked a notable turnaround, with net income swinging 150% from a loss last year to profitability. The company’s earnings exceeded expectations, underlined by a return to profitability with an EPS of $0.09, reversing the prior year's loss. sabre also reaffirmed guidance, projecting robust growth in distribution bookings and revenue for FY 2025.

Revenue

Earnings/Net Income
Sabre returned to profitability with EPS of $0.09 in 2025 Q1, reversing from a loss of $0.19 per share in 2024 Q1 (147.4% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $35.55 million in 2025 Q1, representing a 150.0% positive swing from the net loss of $-71.11 million in 2024 Q1. The positive EPS reflects Sabre's strong recovery from previous losses.

Price Action
The stock price of Sabre has edged up 0.82% during the latest trading day, has climbed 3.38% during the most recent full trading week, and has jumped 13.95% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Sabre (SABR) shares following a quarter of revenue growth and holding for 30 days has yielded a 14.14% return over the past five years. However, this performance significantly trails the benchmark's 84.08% return, underscoring its underperformance. The strategy's Sharpe ratio stands at a low 0.12, indicating suboptimal risk-adjusted returns. Furthermore, it has faced a maximum drawdown of -33.68%, illustrating its high-risk nature and highlighting the critical importance of risk management. Despite the stock's recent upward price movement, these figures emphasize the need for cautious investment strategies.

CEO Commentary
Sabre's President and CEO Kurt Ekert expressed confidence in the company's performance, stating that the team is successfully executing its strategy, leading to solid business momentum in the first quarter of 2025. He emphasized the reaffirmation of full-year expectations for double-digit year-on-year distribution bookings growth despite a challenging macro environment. Ekert highlighted the strategic decision to sell the Hospitality Solutions business, aimed at strengthening the balance sheet and focusing on core airline IT and travel marketplace platforms to drive long-term sustainable growth.

Guidance
Sabre anticipates double-digit year-on-year growth in distribution bookings and high single-digit growth in revenue for FY 2025. Following the planned sale of the Hospitality Solutions business for $1.1 billion, the company expects to utilize approximately $960 million of the net proceeds primarily for debt repayment. Sabre's pro forma net leverage ratio is projected to be around 5.4x net debt to Adjusted EBITDA post-transaction, with a long-term leverage target of 2.5x to 3.5x.

Additional News
Sabre Corporation has been actively engaged in strategic partnerships and business transformations recently. A notable development is its expanded partnership with Aeromexico, announced on May 5, 2025, which focuses on enhancing retailing capabilities using SabreMosaic solutions. This partnership aims to improve operational efficiency and personalize customer experiences. Additionally, Sabre has made significant strides in its strategic focus by planning the sale of its Hospitality Solutions business for $1.1 billion, a move expected to strengthen its balance sheet. Sabre is also leveraging its collaboration with Google to bring advanced AI-driven solutions to the travel industry, as part of its ongoing commitment to innovation and growth.