Wizz Air profit plummets despite revenue growth

 

Adam Vettese, market analyst at eToro says: “Wizz Air’s full-year 2025 results reveal both promise and challenges for shareholders. The company reported €5.27 billion in revenue, up 3.8% from last year which sounds great. However, operating profit plummeted 61.7% and net profit fell 41.5% to €233.8 million, hit by rising costs and operational hurdles. A robust cash reserve offers some financial stability, but the grounding of 46 aircraft due to engine issues has stalled capacity growth.

“Further volatility looms large. Geopolitical risks, and potential recession pressures could weigh on near-term performance. The lack of dividends and a near 40% profit drop seems to have tipped the balance for many this morning as shares have fallen more than 20%

“Does this now make Wizz an attractive recovery story? Low-cost airlines are experiencing resilient demand and dominance in Central and Eastern Europe. Along with its modern, fuel-efficient fleet, these trends position Wizz for potential growth longer term. The company trades at a much lower PE ratio now than some of its well-known peers, although trying to pick up a cheap seat at these levels does not come without its risks.”

 

 

Garry White, Chief Investment Commentator at Charles Stanley, comments: “Wizz Air’s annual profit was lower than its reduced guidance from January, when it issued its second profit warning of the financial year. The company is facing rising costs after grounding a significant proportion of its aircraft due to problems with Pratt & Witney engines. The tone of the statement, however, was upbeat. Despite its many challenges, the airline remains profitable – and the number of grounded aircraft will start reducing in both absolute and relative terms in the current financial year. Two of the airline’s key markets – Ukraine and Israel – are in crisis, so its operations will continue to be negatively impacted by the situations there. It could be some time before services in these markets return to normal. Nevertheless, the current financial year looks set to see an improvement, as the grounding issue is slowly resolved.”

 
Chris Beauchamp, Chief Market Analyst at IG comments: “Wizz Air shareholders should be nervously watching their calendars following this morning’s numbers. Selloffs in 2022, 2023 and 2024 all kicked off around the mid-year point, and these numbers provide little hope that the 17% gain year-to-date can be sustained. It’s clear that the company itself is beginning to fret, given the lack of guidance for 2026. Ryanair, easyJet, and IAG have all seen their shares rise over the last 12 months, but Wizz Air remains 30% lower, a poor performance justified by this morning’s numbers.”

 

Nio puts Tesla’s recent travails in perspective

 

Nio continues to struggle, according to Chris Beauchamp, Chief Market Analyst at global trading and investing platform IG.

Chris Beauchamp, Chief Market Analyst at IG comments: ““Electric car maker Nio is feeling the heat from stronger competition, which is hurting profits as margins come under pressure. These earnings were generally disappointing, although sales and deliveries were both up, providing some green shoots. Nonetheless, there wasn’t much to like in these numbers, which put Tesla’s recent travails in some perspective.”

 

 

Mitie Group three-year plan is taking shape announcing Marlowe acquisition 

 

Mark Crouch, market analyst at eToro says: “Predominantly down to the Mitie Group’s shift to a technology-led facilities transformation model, Mitie has staged a remarkable comeback in recent years. This strategic pivot has supercharged efficiency, unlocked new revenue streams, and delivered double-digit growth alongside record contract wins.

“Mitie’s bold Three-Year Plan is coming together nicely, despite headwinds like rising National Insurance costs, the share price has rebounded sharply in recent weeks, clear proof of investor confidence.  With strong free cash flow fuelling a number of acquisitions, most recently, Mitie announced a £366 million bid to acquire peer Marlowe, a transformational deal that would significantly expand its compliance and regulatory services footprint.

“Strong margins and a relentless focus on tech and innovation position the UK outsourcer for potential further growth. While the latest acquisition has added to Mitie’s debt levels, for investors, the Mitie gravy train looks set to roll on.”

 

 

Dr. Martens showing a flicker of hope amid challenges

 

 

 

Adam Vettese, market analyst at eToro says: “Dr. Martens have been treading a tough road, but signs of a turnaround are emerging for the iconic British bootmaker. Revenue fell, dragged down by a 26% drop in U.S. sales and a 29% slump in wholesale. Pre-tax profit also collapsed, reflecting weak demand and past operational blunders. Yet, the company hit key targets: U.S. direct-to-consumer sales turned positive in the second half, net debt dropped to £218 million, and inventory was cut by 20%. With £189 million in free cash flow and £25 million in cost savings, Dr. Martens is tightening its laces and investors are seeing the positive side with shares flying this morning.

“A renewed strategy, leaning on premium branding and removing discounting could revive the brand’s global appeal. Takeover talk, with Permira’s 38.5% stake also adds spice. However, this should also come with a buyer beware warning – an 80% share price plunge since its 2021 IPO, U.S. tariff threats, without significant income to offset the risk make it volatile. Currency risks and soft consumer spending could further dent margins. Risk-tolerant investors might see value and keep a keen eye on July’s trading update. For the cautious, Dr. Martens’ recovery could be too wobbly to bet on yet.”

 

 



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