HBX Group Unveils €100 Million Share Buy-Back Plan and New Dividend Strategy

HBX Group's Financial Strategies: A Focus on Shareholder Returns

HBX Group International plc, notably recognized as a top global B2B TravelTech player, has made significant announcements that signal its ongoing commitment to delivering shareholder value. The Company revealed plans to initiate a €100 million share buy-back program alongside the commencement of regular dividend payments. This dual approach reflects HBX's strategic focus on returning cash to its investors while reinforcing its ongoing growth trajectory.

A Strategic Share Buy-Back Program

In a recent statement, HBX Group outlined its intention to allocate up to €100 million for the share buy-back initiative, subject to approval at the upcoming Annual General Meeting (AGM) scheduled for February 12, 2026. This program aims to repurchase equity interests in the Company's ordinary shares (ISIN GB00BNXJB679) and is expected to be executed by Bank of America in the financial years 2026 and 2027. Any shares repurchased will either be canceled or utilized to meet the Company’s obligations related to existing employee share schemes.

The plan details that the maximum number of shares to be acquired through this initiative will not exceed 17 million shares, which corresponds to approximately 7% of the Company's issued share capital. Such robust actions illustrate HBX Group's commitment to maintaining an efficient capital structure and signify confidence in the long-term value of its business.

Introduction of Regular Dividends

In conjunction with the buy-back announcement, HBX Group is also set to introduce regular dividend payments, commencing with an interim dividend for the fiscal year 2026. The Group aims for a targeted 20% annual pay-out ratio of Group Adjusted Earnings, contingent on the availability of distributable profits. This new policy reinforces the Group's disciplined approach to capital allocation as outlined in its financial communications for the past year.

CEO Nicolas Huss expressed enthusiasm regarding these strategic decisions. “Our strong financial profile and positive free cash flow provide us with the flexibility to invest in growth while also returning substantial cash to our shareholders. This planned return showcases our confidence in the Group’s strategy and its future prospects,” he stated.

The Bigger Picture

These announcements come as part of HBX Group's broader financial strategy, which emphasizes investing in growth while managing leverage to target an adjusted net debt to adjusted EBITDA ratio between 1 to 2 times. The execution of both the share buy-back and the regular dividend payments demonstrates a commitment to returning excess cash to shareholders while navigating the complexities of the travel industry.

Operating in over 170 countries and employing more than 3,600 staff members, HBX Group is dedicated to simplifying the fragmented travel sector through a suite of cloud-based technology solutions and a comprehensive array of products. Its brands include notable entities like Hotelbeds and Bedsonline, geared towards maximizing revenue for partners in the travel ecosystem, including online marketplaces and tour operators.

Conclusion

As HBX Group moves forward with its €100 million share buy-back and regular dividend plans, stakeholders are optimistic about the potential positive impact on share prices and return metrics. With its strategic initiatives firmly in place, HBX Group remains a prominent player in the travel technology landscape, committed to generating value for its shareholders while continuing to innovate in the industry.