Summary8 Jun 2025 17:11
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Revenue & Passenger Growth
• Full-year revenue rose to approximately €5.07 billion, up ~3.8% year-on-year .
• Passenger volumes hit a record 63.4 million in FY 2025 .
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Profitability & Margins
• Despite well-publicised engine issues, the airline remained profitable, delivering a net profit of €213.9 million in FY ending March 2025, and a strong operating profit of €167.5 million .
• Return on Capital Employed (ROCE) recovered strongly to 11.1% in FY 2024 from –13.5% in the prior year .
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Cash & Balance Sheet Strength
• Cash generated from operations surged to €676.8 million, a ~60% increase year-on-year .
• Though net cash at year-end was €716 million, this followed a €500 million bond paydown – illustrating strong liquidity discipline .
• Leverage improved, with a ratio of 4.0x (down significantly from ~29x) .
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Operational Efficiencies
• Q3 FY 2025 metrics showed:
• Unit ticket revenue (RASK) up ~15%, ancillary RASK +9.6% .
• Load factors at a very strong 90%+ .
• On-time performance ~75.5% with flight completion at 99.4% .
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Risk Management & Hedging
• Around 65% fuel and FX hedged for FY 2026, providing cushion against market swings .
• Newly announced compensation deal with Pratt & Whitney expected to offset engine-grounding costs .
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Sustainability & ESG Credentials
• Named Most Sustainable Low‑Cost Airline (World Finance) and Global Environmental Sustainability Airline Group of the Year (CAPA), repeatedly across 2023–2024 .
• First airline to operate fully-electric aircraft turns in Rome and Budapest during FY 2024 .
• Committed to a 10% SAF blend by 2030, with trials already initiated .
• CO₂ emissions per passenger‑km are among lowest in sector, ~52.6 g as of Sept 2024 .
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Strategic & Network Strength
• Expanding fleet to ~229 aircraft, ordering neo/XLR variants for long haul capabilities .
• Strong network growth, with new routes (e.g., Middle East, Abu Dhabi) projected to boost O&D volumes by 15–20% in FY 2025 .
Wizz Air demonstrates strong demand tailwinds, prudent financial management, and a robust sustainability edge – all while addressing significant operational headwinds. If you believe the engine controversy will be resolved by 2027 and that Wizz’s strategy can be executed, it may represent a compelling value proposition at current levels — especially if you invest for the medium term.
Price range: Recently trading between 1,135 p and 2,548 p within the last 52 weeks .
• Market cap & EV: ~£1.7 billion (market cap), enterprise value ~£5.6 billion .
• P/E ratio: Trailing P/E ~12×; forward P/E ~7.9× —above industry average of ~9–10× .
• PEG ratio: ~0.4–0.47—suggesting undervaluation relative to projected growth .
• EV/EBITDA: ~4.95×, below sector average (5.0–5.7×) and historical range (~7×), h