HBX Group Charts Mature Course with Dividends & €100M Buy-Back

LONDON, UK – January 16, 2026 – In a significant display of financial strength and confidence, global B2B TravelTech leader HBX Group today announced a comprehensive capital return strategy, including a share buy-back program of up to €100 million and the initiation of regular dividend payments. The move was met with enthusiasm by the market, signaling a new phase of maturity for the company and potentially for the wider TravelTech sector.

The dual initiatives underscore management's conviction in the company's long-term value and its commitment to an efficient capital structure that balances reinvestment in growth with direct returns to shareholders.

A Bold Commitment to Shareholder Value

HBX Group, the parent company of prominent travel brands like Hotelbeds and Bedsonline, detailed its plan to return substantial cash to its investors over the coming fiscal years. The cornerstone of the announcement is a proposed share buy-back program of up to €100 million, which will be executed by Bank of America across fiscal years 2026 and 2027. This program is contingent on shareholder approval at the company's upcoming Annual General Meeting (AGM) scheduled for February 12, 2026.

If authorized, the buy-back could involve the repurchase of up to 17 million shares, which represents approximately 7% of the company's current issued share capital. These repurchased shares will either be cancelled, which would increase the earnings per share for remaining stockholders, or allocated to satisfy obligations under employee share schemes.

In addition to the buy-back, HBX Group is introducing a regular dividend policy, a move often associated with stable, cash-generative companies. The firm intends to commence payments with an interim dividend for the 2026 fiscal year. The policy targets an annual pay-out ratio of 20% of the Group's Adjusted Earnings, a non-IFRS metric the company uses to reflect its underlying operational profitability.

"Our strong financial profile and operating free cash flow conversion give us the flexibility to invest in growth while returning significant cash to our shareholders," stated Nicolas Huss, Chief Executive Officer of HBX Group. "This planned return reflects our confidence in the Group's strategy and future prospects, and our conviction in the underlying strength of our business."

Underpinned by Robust Financial Health

This strategic pivot towards shareholder returns is not happening in a vacuum. It is directly supported by the company's impressive financial performance, particularly following its Initial Public Offering (IPO) in February 2025. The IPO generated gross proceeds of €725 million, which were instrumental in strengthening the company's balance sheet.

According to its full-year 2025 results, HBX Group significantly reduced its net debt from €1,071 million in the prior year to €397 million. Its adjusted net debt to adjusted EBITDA ratio now stands at 1.5x, comfortably within its target leverage range of 1 to 2 times. This deleveraging has provided the financial flexibility needed to implement the new capital return policy.

The company's operational engine remains powerful. For fiscal year 2025, Total Transaction Value (TTV) grew by 8% to €8.2 billion, while Adjusted EBITDA climbed 10% to €431 million. Most critically, the company demonstrated exceptional cash generation, with operating free cash flow reaching €437 million, representing a cash conversion rate of 101%. It is this ability to convert profits into cash that directly enables both share repurchases and dividend payments.

While the company reported a statutory net loss of €70 million for FY25, this was attributed to one-off, non-recurring charges associated with the IPO. Management's focus on "Adjusted Earnings," which rose 48% to €258 million in the same period, provides a clearer picture of the sustainable profitability driving these strategic decisions and explains why the dividend will commence in FY26 rather than being based on FY25 results.

Market Cheers as HBX Signals a New Era

Investors reacted positively to the news, sending HBX Group's shares surging between 5% and 8.6% in trading on January 16. The market's response suggests a strong endorsement of the company's balanced approach to capital allocation. Analysts at UBS Global Research noted that the proposed €100 million buy-back alone accounts for roughly 5% of the company's market capitalization, representing a significant return.

The announcement is widely seen as a signal of maturation. For years, the TravelTech sector has been characterized by a "growth-at-all-costs" mentality, where companies reinvested every available euro back into technology, expansion, and market share acquisition. HBX Group's decision to systematically return cash to shareholders marks a departure from this model. It positions the company not just as a growth story, but as a durable, profitable enterprise capable of rewarding its investors directly.

This shift could attract a new class of investors who prioritize income and value alongside growth, potentially stabilizing the company's shareholder base over the long term. The disciplined capital allocation framework—investing in growth, maintaining appropriate leverage, and returning excess cash—presents a clear and compelling narrative for the financial community.

Setting a New Bar in TravelTech Capital Strategy

When viewed against the competitive landscape, HBX Group's strategy appears particularly forward-thinking. While major travel players like Booking Holdings have long utilized share buybacks and Expedia Group has a dividend policy, the combination of a major buy-back announcement with the initiation of a regular dividend is a powerful statement for a B2B-focused TravelTech firm. Other B2B technology providers in the travel space, such as Sabre and Travelport, have historically focused more on reinvestment in their platforms.

By adopting this dual-pronged approach, HBX Group is not just following a trend but potentially setting a new one for its specific segment. It demonstrates that the underlying business model of B2B travel technology can be highly profitable and cash-generative, moving beyond the venture-backed growth phase into a more sustainable and shareholder-friendly stage of corporate life. This could put pressure on competitors to articulate their own capital return strategies more clearly.

As the global travel industry continues its complex evolution, the financial strategies of its key technology enablers are coming under greater scrutiny. HBX Group's announcement today is more than a financial transaction; it's a strategic declaration that the company has reached a level of stability and profitability where it can confidently fuel future growth while simultaneously rewarding the shareholders who have supported its journey. The final go-ahead now rests with investors at the upcoming AGM, an event that will be closely watched by the entire travel industry.