ADVFN UK Market News

Category: Top Story

  • IAG Operating Profit Rises in 2025, Beating Market Forecasts

    IAG Operating Profit Rises in 2025, Beating Market Forecasts

    International Airlines Group (LSE:IAG) reported annual results on Friday that exceeded analyst expectations, supported by lower fuel expenses and sustained demand across its core transatlantic network, particularly for premium cabin travel.

    The airline group, which owns British Airways, posted adjusted operating profit of €5.02 billion, up 3.5% year on year and above the €4.97 billion forecast compiled by LSEG analysts.

    Revenue increased 3.5% to €33.21 billion, compared with €32.10 billion recorded in 2024.

    Operating margin improved by 1.3 percentage points to 15.1%, while adjusted earnings per share rose 22.4% to 69.5 euro cents. Free cash flow totalled €3.1 billion, down from €3.6 billion a year earlier but still characterised by the company as a strong performance.

    Return on invested capital (ROIC) also strengthened, reaching 18.5% compared with 17.3% in 2024.

    Looking ahead, the group said it is “positively positioned for 2026.”

    “The outlook for travel trends continues to be supportive, particularly in our core markets. We will continue to execute on our strategy, supported by our transformation programme,” it said.

    IAG added that it intends to return €1.5 billion ($1.77 billion) of surplus cash to shareholders over the next 12 months, starting with a €500 million share buyback programme expected to be completed by the end of May 2026.

  • Rightmove Reports Strong Profit Growth and Expands AI Strategy in 2025

    Rightmove Reports Strong Profit Growth and Expands AI Strategy in 2025

    Rightmove (LSE:RMV) delivered solid results for 2025, with revenue increasing 9% to £425.1 million, operating profit rising 12%, and basic earnings per share climbing 15%. Growth was supported by a modest increase in estate agency membership and higher adoption of premium, product-focused advertising packages. Average revenue per advertiser grew 6%, while strategic segments — including commercial property, mortgages, and rental services — recorded combined revenue growth of 25%. The company returned close to £220 million to shareholders through dividends and share buybacks, alongside announcing an additional £90 million repurchase programme and an increased final dividend.

    Operationally, Rightmove strengthened its leading consumer position, achieving record levels of online property search engagement, increased app usage, and improved social media reach. Agency retention remained above 90%, while new estate agent formation reached record levels. The company also accelerated its technology development, rolling out 31 active AI initiatives, delivering thousands of product updates, and expanding a multi-year partnership with Google Cloud. New AI-powered tools for agents and consumers are designed to enhance platform value and support sustained double-digit growth over the medium term, supported by improving property market conditions.

    Rightmove’s outlook benefits from strong financial performance and positive sentiment following its earnings update, although technical indicators suggest some near-term market caution and valuation metrics remain moderate. Ongoing share buybacks continue to support shareholder returns, but market momentum remains an area to monitor.

    More about Rightmove

    Rightmove plc operates the UK’s largest online property portal, connecting estate agents, new homes developers, and commercial property firms with buyers, sellers, renters, and investors. The platform generates revenue through advertising and premium product packages and is increasingly focused on data-driven and AI-enabled services across residential, commercial, mortgage, and rental property markets.

  • Flutter Entertainment Delivers Strong 2025 Growth Despite India-Related Impairment Loss

    Flutter Entertainment Delivers Strong 2025 Growth Despite India-Related Impairment Loss

    Flutter Entertainment (LSE:FLTR) reported solid operational growth in 2025, with revenue rising 17% to $16.4 billion and adjusted EBITDA increasing 21% to $2.85 billion, supported by a 14% expansion in average monthly players and contributions from recent acquisitions. However, the group recorded a net loss of $407 million, primarily reflecting a $556 million non-cash impairment charge tied to regulatory developments in India, alongside higher financing and tax expenses.

    In the United States, Flutter strengthened its leadership position, achieving a 41% share of sportsbook gross gaming revenue (GGR) and a 28% share in iGaming during the fourth quarter. Performance was supported by favourable sportsbook margins, the launch of operations in Missouri, and the introduction of FanDuel Predicts within prediction markets. Internationally, revenue increased 19%, driven by acquisitions and growth across South-East Europe and Central and Eastern Europe, although the withdrawal from India and volatile sporting outcomes affected organic sportsbook performance.

    The company returned $1 billion to shareholders during the year, while free cash flow declined due to increased capital expenditure and acquisition activity. Flutter ended 2025 with leverage of 3.7x following deals in the U.S., Italy, and Brazil. For 2026, management guided toward approximately 12% revenue growth and modest adjusted EBITDA expansion, supported by continued investment in U.S. prediction markets and Brazil, while UK tax increases and the exit from India are expected to present near-term headwinds.

    More about Flutter Entertainment PLC

    Flutter Entertainment is a global online sports betting and iGaming operator listed in both New York and London, with major brands including FanDuel. The company focuses on regulated markets worldwide, holding a leading position in the U.S. alongside strong operations across international regions such as South-East Europe, Central and Eastern Europe, Italy, and Brazil.

  • Pearson Increases Profit, Cash Flow and Dividend as AI Strategy Supports 2026 Outlook

    Pearson Increases Profit, Cash Flow and Dividend as AI Strategy Supports 2026 Outlook

    Pearson (LSE:PSON) reported 4% underlying sales growth in 2025, with revenue reaching £3.58 billion, while adjusted operating profit rose 6% to £614 million. The improvement lifted the company’s operating margin to 17.2% and supported an 8% increase in free cash flow, alongside a 5% rise in the annual dividend. Strong contributions from virtual learning, assessment services, and enterprise skills helped drive performance, even as the group recognised a one-off impairment linked to platform consolidation that management expects will enhance Higher Education profitability over the longer term.

    The company highlighted continued progress in expanding AI-enabled products and enterprise-focused solutions, securing eight major partnerships during the year, including a new collaboration with Salesforce. Pearson also completed a £350 million share buyback programme and launched a further £350 million repurchase plan in early 2026. Supported by a solid balance sheet and a newly arranged $800 million credit facility, the group guided toward mid-single-digit revenue growth, higher adjusted operating profit, and strong cash conversion for 2026, reinforcing its positioning at the convergence of education, workforce skills, and AI-driven learning.

    Pearson’s outlook reflects stable financial fundamentals, supported by strong profitability and cash generation. Strategic initiatives and shareholder returns, including buybacks and governance developments, contribute positively to investor sentiment. However, technical indicators point to a cautious near-term trend, and moderating revenue growth remains an area to monitor.

    More about Pearson

    Pearson is a global education and learning company specialising in assessments, qualifications, virtual and higher education, English language learning, and enterprise skills development. The company delivers large-scale testing services, digital and AI-enabled learning platforms, and courseware to schools, universities, and businesses worldwide, with an increasing focus on enterprise partnerships and workforce development solutions.

  • Hays Releases Half-Year Results and Confirms Interim Dividend Policy

    Hays Releases Half-Year Results and Confirms Interim Dividend Policy

    Hays plc (LSE:HAS) has issued its half-year financial report covering the six months ended 31 December 2025, with the document now accessible through both the London Stock Exchange and the company’s investor relations website. The filing has also been submitted to the Financial Conduct Authority’s National Storage Mechanism, reflecting the group’s ongoing commitment to regulatory compliance and transparency for shareholders.

    The board has declared an interim dividend of 0.15 pence per share, calculated using the same framework applied to last year’s final dividend and maintaining earnings cover of three times. The payment is scheduled for 23 April 2026 and will include a dividend reinvestment plan (DRIP) option for eligible investors. The decision highlights a cautious but consistent approach to shareholder returns, alongside continued investor engagement through an analyst webcast hosted by Chief Financial Officer James Hilton.

    Hays’ outlook remains constrained by weak financial and technical performance indicators. Declining revenue trends and profitability challenges continue to pressure overall performance metrics, while technical analysis signals a bearish trajectory for the shares. Valuation concerns, including a negative price-to-earnings ratio, further weigh on sentiment. Although recent corporate actions suggest management confidence, they have not materially changed the broader assessment.

    More about Hays plc

    Hays plc is a global recruitment and staffing specialist focused on placing professionals and skilled workers across a wide range of industries. The company connects employers with qualified talent worldwide, offering recruitment, workforce management, and advisory services to corporate and institutional clients.

  • European Stocks Advance as Nvidia Results Lift Sentiment: DAX, CAC, FTSE100

    European Stocks Advance as Nvidia Results Lift Sentiment: DAX, CAC, FTSE100

    European equity markets traded broadly higher on Thursday, supported by upbeat earnings from Nvidia that helped counter lingering concerns around U.S. trade policy and ongoing geopolitical tensions.

    Investor attention also turned to diplomacy, with officials from Iran and the United States scheduled to meet in Geneva for a third round of nuclear talks aimed at easing tensions and avoiding a potential conflict.

    The French CAC 40 Index climbed 0.8%, while Germany’s DAX Index added 0.4%. The U.K.’s FTSE 100 Index posted a more modest gain of 0.2%.

    Shares in London Stock Exchange Group (LSE:LSEG) surged about 4% after the exchange operator unveiled plans for a £3 billion share buyback program alongside reporting a 56.5% increase in pretax profit for 2025.

    Italian energy major Eni (BIT:ENI) advanced 1.4% following the announcement of a 35% year-on-year rise in fourth-quarter adjusted net profit.

    German sportswear company Puma (TG:PUM) jumped 6% after forecasting a smaller EBIT loss for fiscal year 2026.

    Insurance giant Allianz (TG:ALV) slipped 1.3% as investors reacted to 2026 guidance that came in below market expectations.

    Reinsurer Munich Re (TG:A2TSS7) declined 2.6% after reporting a sharper-than-anticipated drop in fourth-quarter profit, weighed down by adverse currency movements.

    French industrial group Bouygues (EU:EN) gained 1.2% after delivering full-year earnings in line with analyst forecasts.

    Schneider Electric (EU:SU) rose 2.6% after announcing record annual revenue of €40.15 billion, driven by strong demand for data-center infrastructure linked to artificial intelligence growth.

    Payments company Worldline (EU:WLN) fell 3% after confirming it had entered into a definitive agreement to sell its Indian operations to local payments firm BillDesk.

    Utility group Engie (EU:ENGI) rallied 7.3% after agreeing to acquire the United Kingdom’s largest electricity distribution network in a £10.5 billion ($14.2 billion) deal.

  • European Stocks Mixed as Earnings Season Intensifies; Nvidia Results Beat Expectations: DAX, CAC, FTSE100

    European Stocks Mixed as Earnings Season Intensifies; Nvidia Results Beat Expectations: DAX, CAC, FTSE100

    European equities traded unevenly on Thursday morning as investors assessed a heavy flow of corporate earnings across the region alongside fresh results from U.S. chipmaker Nvidia.

    At 08:10 GMT, Germany’s DAX slipped 0.2%, while London’s FTSE 100 edged down 0.1%. France’s CAC 40 outperformed, rising 0.3%.

    Earnings Take Centre Stage

    Corporate earnings dominated market attention amid one of the busiest reporting days of the European season.

    According to Bank of America, fourth-quarter earnings across Europe are modestly outperforming expectations, although the broader outlook remains fragile due to narrow leadership and strong market reactions to companies missing forecasts.

    With just over half of STOXX 600 constituents having reported, earnings per share growth is currently running at around 2% year-on-year, compared with consensus expectations for a 2% decline at this stage of the reporting cycle.

    “The upside surprise to index earnings is dominated by financials and industrials, while tech has been the main drag,” BofA’s strategists led by Andreas Bruckner said in a note.

    Among individual companies, Deutsche Telekom (TG:DBK) reported a 9.2% decline in fourth-quarter adjusted net profit, citing currency headwinds from a weaker U.S. dollar that reduced contributions from its majority-owned T-Mobile US business, while also lowering growth expectations for its domestic market.

    Automaker Stellantis (BIT:STLAM) announced its first annual loss on record after earlier disclosing €22.2 billion in charges linked to a scaling back of its electric-vehicle ambitions.

    Insurance group Allianz (TG:ALV) delivered record operating profit for 2025 but disappointed investors with 2026 guidance that came in below analyst forecasts.

    French insurer AXA (TG:AXA) posted full-year results broadly in line with expectations, with underlying earnings per share increasing 8% year-on-year and reaching the upper end of its target range.

    Swiss chemicals company Clariant (BIT:1CLN) exceeded fourth-quarter earnings expectations, marking its third consecutive year of margin expansion.

    German sportswear manufacturer Puma (TG:PUM) projected an operating loss of €50 million to €150 million for the current year, despite reporting a smaller-than-expected loss in 2025.

    Meanwhile, Schneider Electric (EU:SU) reported record annual revenue, surpassing €40 billion for the first time, supported by triple-digit demand growth tied to data centre investments and setting a double-digit profit growth target for 2026.

    Nvidia Beats Expectations but Fails to Excite Investors

    In the United States, Nvidia (NASDAQ:NVDA) reported better-than-expected quarterly results late Wednesday and issued revenue guidance above market forecasts, reflecting continued strong spending by major technology companies on artificial-intelligence infrastructure.

    The semiconductor group projected fiscal first-quarter revenue of $78 billion, plus or minus 2%, compared with analysts’ consensus estimate of $72.60 billion, according to LSEG data.

    Despite the beat, after-hours gains were limited, as investors accustomed to substantial upside surprises over the company’s previous 14 reporting quarters reacted cautiously to what were viewed as relatively uneventful results.

    Economic Data and Sentiment in Focus

    Markets were also awaiting regional economic indicators, including business confidence readings from Italy and Spain as well as broader EU economic sentiment data.

    In the UK, confidence among business and professional services firms improved significantly during the current quarter, ending more than a year of declining sentiment, although consumer-focused sectors remained subdued.

    The Confederation of British Industry’s quarterly services survey showed optimism in business and professional services rising to -3 in February from -50 in November, the strongest reading since August 2024.

    Oil Prices Hold Steady Ahead of U.S.-Iran Talks

    Oil markets were broadly stable, trading near seven-month highs as investors awaited developments from a third round of nuclear discussions between the United States and Iran scheduled later in the day.

    Brent crude futures gained 0.2% to $70.84 per barrel, while U.S. West Texas Intermediate futures rose 0.2% to $65.62.

    U.S. envoys, including special representative Steve Witkoff and presidential adviser Jared Kushner, are expected to meet Iranian officials in Geneva as Washington seeks progress on Tehran’s nuclear programme.

    U.S. President Donald Trump has warned that “bad things” could happen if meaningful progress is not achieved, raising concerns that a prolonged conflict could disrupt supply from Iran, the third-largest crude producer within OPEC.

  • FTSE 100 Opens Slightly Lower Near Record Levels; Earnings From LSEG and Rolls-Royce in Spotlight

    FTSE 100 Opens Slightly Lower Near Record Levels; Earnings From LSEG and Rolls-Royce in Spotlight

    UK equities slipped modestly at Thursday’s open but remained close to record territory as investors digested a fresh wave of corporate earnings, including updates from Rolls-Royce and London Stock Exchange Group. Sterling weakened against the US dollar while continuing to trade above the $1.35 level.

    At 0813 GMT, the benchmark FTSE 100 index was down 0.08%. The pound fell 0.2% to $1.3533 versus the dollar. Across Europe, Germany’s DAX declined 0.2%, while France’s CAC 40 advanced 0.3%.

    Globally, markets also reacted to results from NVIDIA Corporation (NASDAQ:NVDA), which beat revenue forecasts and issued an upbeat outlook but failed to spark investor enthusiasm. Attention additionally turned to geopolitical developments as the United States and Iran entered talks, while artificial intelligence remained a key theme, with investors weighing returns on heavy AI-related capital spending and potential disruption risks, according to Jefferies.

    UK Market Round-Up

    Rolls-Royce (LSE:RR.) reported a 40% rise in annual profit following strong aero-engine performance, alongside upgraded medium-term targets and enhanced shareholder return plans.

    Underlying operating profit reached £3.46 billion in 2025, producing a margin of 17.3% and exceeding the £3.27 billion consensus estimate. Free cash flow totalled £3.3 billion, supported by strong operating execution and expanding long-term service agreement balances, leaving the group with net cash of £1.9 billion at year-end. For 2026, Rolls-Royce expects underlying operating profit of £4.0 billion to £4.2 billion and free cash flow of £3.6 billion to £3.8 billion.

    London Stock Exchange Group (LSE:LSEG) posted a 56.5% increase in pretax profit for 2025 and announced an additional £3 billion share buyback programme. Pretax profit rose to £1.97 billion from £1.26 billion a year earlier, while total income excluding recoveries grew 5.8% to £8.99 billion, or 7.1% on an organic constant-currency basis. Reported earnings per share climbed 85.1% to 238.4 pence, with adjusted EPS up 15.7% to 420.6 pence.

    WPP (LSE:WPP) unveiled a multi-year restructuring strategy named Elevate28, aimed at simplifying operations and restoring organic growth. The advertising group plans to transition from a holding company structure into a unified operating model organised around four divisions: WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions, operating across North America, Latin America, EMEA and APAC.

    Hikma Pharmaceuticals plc (LSE:HIK) issued 2026 guidance below market expectations, forecasting sales growth of 2% to 4% compared with consensus estimates of 5.5%. Core EBIT is projected between $720 million and $770 million, below the $778 million consensus estimate, while injectables margins are expected to remain below market forecasts.

    Ocado Group (LSE:OCDO) reported stronger-than-expected second-half 2025 performance and said it anticipates achieving positive free cash flow in the second half of 2026, with full-year 2027 also expected to turn cash-flow positive. Group revenue beat expectations by 4.5%, while EBITDA exceeded consensus by 4.2%.

    CVS Group (LSE:CVSG) delivered first-half 2026 revenue growth of 5.8%, broadly matching forecasts as sales reached £356.9 million. Like-for-like growth improved to around 2.7%, reflecting a recovery from negative growth recorded a year earlier. UK operations generated £320.6 million in revenue, with Australia contributing £36.3 million.

    Derwent London (LSE:DLN) reported a net asset value of 3,225 pence per share for FY25, up 2.4%, alongside earnings per share of 98.4 pence and a dividend of 81.5 pence per share. Leasing activity totalled £11.3 million during the year at rents nearly 10% above estimated rental value.

    Howden Joinery Group (LSE:HWDN) exceeded profit expectations for FY25 and announced a £100 million share buyback. Pre-tax profit reached £344.9 million, beating consensus estimates of roughly £331 million.

    Greencoat UK Wind (LSE:UKW) reported net asset value per share of 133.5 pence at the end of 2025, equating to a total return of -4.9% for the year. Shares trade at a nearly 30% discount to NAV, prompting a continuation vote at the upcoming AGM.

    Man Group (LSE:EMG) recorded record organic growth, with assets under management rising 35% year-on-year to $227.6 billion, supported by $28.7 billion in net inflows and strong investment performance. The firm achieved its sixth consecutive year of market share gains.

    Drax Group (LSE:DRX) reported record renewable electricity generation for 2025, producing 6% of UK power and 11% of UK renewable output. Adjusted EBITDA declined to £947 million due to lower power prices, while operating profit dropped following £378 million in non-cash impairments. The company extended its share buyback programme with a new £450 million plan.

    Tate & Lyle (LSE:TATE) said third-quarter trading was in line with expectations, with revenue for the three months to December 31 rising 15% on a reported basis following the integration of CP Kelco.

  • Rolls-Royce Profit Surges 40% as Company Raises Targets and Expands Shareholder Returns

    Rolls-Royce Profit Surges 40% as Company Raises Targets and Expands Shareholder Returns

    Rolls-Royce (LSE:RR.) reported a sharp rise in annual earnings for 2025, driven by strong performance in its civil aerospace business, while upgrading its medium-term financial targets and outlining increased capital returns to shareholders.

    Underlying operating profit climbed 40% to £3.46 billion for the year, delivering an operating margin of 17.3% and exceeding the market consensus forecast of £3.27 billion. Free cash flow reached £3.3 billion, supported by solid operational execution and continued expansion of long-term service agreement balances. The group ended the year with a net cash position of £1.9 billion as of 31 December 2025.

    For 2026, Rolls-Royce expects underlying operating profit to rise further to between £4.0 billion and £4.2 billion, alongside projected free cash flow of £3.6 billion to £3.8 billion.

    The company also lifted its medium-term ambitions, now targeting underlying operating profit in the range of £4.9 billion to £5.2 billion, compared with its previous goal of £3.6 billion to £3.9 billion. Operating margin targets were raised to 18%–20%, up from the earlier 15%–17% range.

    Free cash flow expectations over the medium term were also increased to £5.0 billion to £5.3 billion, compared with prior guidance of £4.2 billion to £4.5 billion. The company now anticipates return on capital of 23% to 26%, up from its earlier target of 18% to 21%.

    As part of its enhanced shareholder distribution strategy, Rolls-Royce announced plans for a share buyback programme valued between £7 billion and £9 billion covering the period from 2026 to 2028, including £2.5 billion scheduled for completion this year.

    The group also declared a final dividend of 5 pence per share.

  • Ocado Releases 2025 Preliminary Results and Sets Investor Presentation Date

    Ocado Releases 2025 Preliminary Results and Sets Investor Presentation Date

    Ocado Group (LSE:OCDO) has published its preliminary results for the financial year ended 30 November 2025, with the full annual report now accessible through the London Stock Exchange and the company’s corporate website.

    The online grocery and technology group confirmed that the unedited results have also been filed with the Financial Conduct Authority’s National Storage Mechanism, providing formal regulatory access for investors and market participants.

    In conjunction with the results release, Ocado announced it will host an investor and analyst presentation on 26 February 2026, including a live webcast and question-and-answer session. The event is intended to offer additional insight into the company’s annual performance, operational progress and forward outlook, reflecting its ongoing focus on maintaining transparency and engagement with shareholders.

    The company’s outlook continues to be shaped by challenging financial performance, including declining revenues and ongoing losses. Technical indicators suggest a weaker share price trend, further weighing on sentiment, while limited valuation visibility adds uncertainty around pricing levels. Although management highlighted positive elements such as revenue improvements in certain areas and strong liquidity during earnings discussions, these factors have yet to fully offset broader financial and technical pressures.

    More about Ocado Group

    Ocado Group is a UK-based online grocery technology and logistics company specialising in automated fulfilment systems and e-commerce solutions for food retailers. Its operations combine its own online grocery retail activities with the international licensing of the proprietary Ocado Smart Platform, which enables partners to operate automated warehouses and digital grocery services in global markets.