Saga plc (LSE:SAGA) said it now expects underlying profit before tax for 2025/26 to be higher than both the prior year and its earlier half-year guidance, supported by strong trading across its Ocean and River Cruise, Holidays and Insurance Broking divisions.
Cruise operations benefited from higher load factors and improved per diem pricing, while the Holidays business delivered double-digit growth in both revenues and passenger numbers. In Insurance Broking, policy sales exceeded expectations, contributing to stronger trading EBITDA across the group. These performances have supported a reduction in net debt, with leverage falling below 4.0x, and management said further deleveraging is anticipated in the next financial year.
Strategically, Saga has continued to simplify and strengthen its operations by bringing its travel businesses under a single management structure and completing the disposal of its insurance underwriting arm. The group has also launched new partnerships, including with Ageas in insurance and NatWest Boxed in savings, broadening its product offering. Combined with robust forward bookings for 2026/27, management believes these initiatives position the business for ongoing growth and progress toward longer-term profitability and leverage targets.
Overall, Saga’s outlook reflects a blend of improving operational momentum and lingering balance-sheet challenges. Cash generation is strong and recent trading updates have been constructive, but profitability remains under pressure and leverage is still elevated. Technical indicators point to a strong share price trend, although overbought signals suggest some risk of near-term consolidation, while valuation remains constrained by negative earnings and the absence of a dividend.
More about Saga plc
Saga plc is a UK-based provider of products and services designed specifically for people aged over 50. Operating under a well-established consumer brand, the group’s activities span ocean and river cruises, package holidays, insurance broking, personal finance products and publishing, with a focus on premium offerings and high standards of customer service for its core demographic.
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