Saga plc (65J) Q2 2026 Earnings Report

Saga delivered a strong first half with significant revenue growth and debt reduction, particularly excelling in its travel and insurance broking segments. The strategic moves, including the sale of the underwriting business and upcoming partnerships, position Saga for future growth. However, challenges remain in the home insurance segment and the impact of higher finance costs. Overall, the positive aspects significantly outweigh the negatives.

The call provided comprehensive guidance on Saga's financial performance and strategic direction. Key metrics highlighted include a 7% increase in underlying revenue and an 8% growth in trading EBITDA, contributing to a reduction in net debt by GBP 77.7 million to GBP 515.1 million. The leverage ratio improved to 4.3x from 4.8x, reflecting strong cash generation. The Travel business was a significant profit driver, with a 33% increase in underlying PBT to GBP 41.6 million and ocean cruise PBT up 23%, alongside an 8% revenue growth and a 94% load factor. The River Cruise business saw a 34% increase in underlying PBT, with a load factor rising to 93%. The Holidays business reported a 14% revenue growth driven by a 13% increase in passenger numbers. Insurance Broking's underlying PBT stood at GBP 8.9 million, with policy volume growth across motor, travel, and private medical insurance. The sale of AICL added GBP 17 million in cash, aiding strategic simplification. The company is on track for its medium-term targets, including a GBP 100 million profit and leverage below 2x by 2030.