HBX shares sink 25% after outlook cut on macro pressures and weak U.S. demand

Published 30/07/2025, 11:08
© Reuters.

Investing.com -- Shares in Spanish travel tech firm HBX Group International (BME:HBX) plunged nearly 25% Wednesday, heading for their steepest drop on record after the company cut its full-year guidance, citing macroeconomic pressures and a softer U.S. dollar.

HBX now expects 2025 revenue between €720 million and €740 million ($831–$854 million), down from a prior range of €740 million to €790 million.

The company also trimmed its outlook for total transaction value (TTV) growth to between 6% and 9%, compared to the 10% to 16% projected at the time of its IPO in February.

Adjusted EBITDA outlook was also trimmed to €430-440 million, from the previous range of €430-450 million. 

In a trading update, HBX said its business was hit by regional instability and currency headwinds. The ongoing conflict in the Middle East weighed on travel to destinations like Saudi Arabia and Jordan, with both experiencing double-digit declines.

Meanwhile, U.S. revenue slipped 3% amid a weaker dollar and softer demand.

For its fiscal third quarter, covering April to June, HBX posted €182 million in revenue, up 3% year-on-year but roughly 4% below analyst expectations.

TTV for the period came in at €2.18 billion, marking a 5% increase year-on-year (8% in constant currency), also missing consensus by around 4%.

"While FX was clearly a material headwind for growth in the quarter, we also note that this represents an underlying slowdown vs. 1H25," Morgan Stanley (NYSE:MS) analysts led by Adam Wood said in a note.

On a more positive note, HBX continues to outperform the broader hotel market, which grew by around 5% year-on-year, according to the company’s internal model.

Morgan Stanley notes that this "demonstrates HBX’s level of diversification, which despite a challenging market and shifting travel corridors, continues to outperform the market."

The analysts believe current consensus estimates likely reflect a mix of outdated and updated FX assumptions, and expect revisions following today’s release.

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