Friday preview: BA and Iberia owner IAG to publish FY results

(Sharecast News) - Full-year results are due on Friday from International Consolidated Airlines Group, Melrose Industries, Pearson, Tritax Big Box and Just Group. Also in focus will be a six-month trading update from recruiter Hays, while in Europe, Swiss Re, BASF and Delivery Hero are among those slated to report.

As far as IAG is concerned, Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said demand across most of its airlines has been holding up well.

"Its largest airline, British Airways, has an impressive share of flight slots at the capacity-constrained Heathrow airport, putting upward pressure on ticket prices. On the cost side, easing fuel prices should provide another tailwind for the bottom line. As a result, market expectations for full-year operating profits have improved since the third quarter and are now expected to land at around £5.0bn, reflecting growth of around 13%.

"Looking ahead, capital expenditure is set to ramp up over the coming years as the group looks to expand its fleet and upgrade its digital infrastructure. There's plenty of free cash flow to fund these investments, and there should also be enough to fund a new share buyback programme. Investors are keen to hear just how big this new share buyback programme could be (around €1.8bn expected)."

On Melrose, UBS said that it and Visible Alpha consensus model £86m 2025 free cash flow, against guidance of more than £100m.

"We see minor cash cost increases in lease & interest payments as well as FX moves post H1 partially offset by lower tax cash costs," the bank said. "We also expect an unwind of tariff disruption headwinds, usual seasonality and the receipt of a significant RRSP settlement payment in H2 as supporting FCF for the FY."

As far as 2026 guidance is concerned, UBS believes Melrose will guide for around £150m 2026 FCF, broadly in line with consensus of £164m.

Investors will also turn their attention to the GfK UK consumer confidence index for February and the German unemployment rate for January. Across the pond, the US producer price index for January is due, along with the Chicago PMI for February.

Friday February 27

INTERIMS

Croma Security Solutions Group

INTERIM DIVIDEND PAYMENT DATE

B.P. Marsh & Partners, City of London 4.2% Cum 1st Prf Stk, City of London Investment Trust 4.2% Non-Cum 2nd Prf Stk, City of London Investment Trust Preference Ord Stk 14% Non-Cumulative 1, NB Private Equity Partners Ltd., The European Smaller Companies Trust

QUARTERLY PAYMENT DATE

Carnival, City of London Inv Trust, Custodian Property Income Reit, ICG Enterprise Trust, Octopus Renewables Infrastructure Trust , Picton Property Income Ltd, Supermarket Income Reit

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Import Price Index (GER) (07:00)

Personal Consumption Expenditures (US) (13:30)

Personal Income (US) (13:30)

Personal Spending (US) (13:30)

Retail Sales (GER) (07:00)

Unemployment Rate (GER) (08:55)

GMS

Europa Oil & Gas (Holdings), Mid Wynd International Inv Trust

FINALS

International Consolidated Airlines Group SA (CDI), Just Group, Melrose Industries, Rathbones Group, Rightmove, The Renewables Infrastructure Group Limited, Tritax Big Box Reit , Winking Studios Limited (DI)

EGMS

Starwood European Real Estate Finance Limited

AGMS

CC Japan Income & Growth Trust, Gooch & Housego, Home Reit , Me Group International

UK ECONOMIC ANNOUNCEMENTS

GFK Consumer Confidence (00:01)

FINAL DIVIDEND PAYMENT DATE

Schroder UK Mid Cap Fund, SSP Group , Victrex plc