Saga Shares Soar Over 21% on Strong Profits and Upgraded Outlook

Shares of Saga plc (SAGA) soared more than 21% on Wednesday after the UK-based company reported a sharp increase in first-half profits and raised its financial outlook for the full year, signaling strong momentum across its core businesses.

Standout Interim Results

In its report for the six months ending July 31, 2026, Saga announced that its underlying profit before tax nearly doubled to £46.6 million, up from £23.5 million in the same period a year earlier. The performance was driven by solid top-line growth and improved profitability.

Key financial highlights from the period include:

• Underlying Revenue: Climbed 14% year-over-year to £366.3 million.
• Trading EBITDA: Jumped 35% to £90.9 million.
• Operating Cash Flow: Grew 27% to £101 million.

CEO Mike Hazell attributed the results to "exceptionally strong" growth across all of the company's main divisions, according to the release.

Ad

Upgraded Guidance and Deleveraging

Crucially for investors, Saga's management raised its full-year underlying profit guidance to a range of £65 million to £70 million. This new forecast is significantly above the prior analyst consensus estimate of approximately £60.4 million.

The company also noted significant progress in strengthening its balance sheet. Net debt fell by £86 million from the prior year to £429.1 million, causing its leverage ratio to improve sharply to 2.7x from 4.3x. Citing this progress, Saga now expects to achieve its medium-term targets, including £100 million in profit and a leverage ratio below 2x, ahead of its original January 2030 deadline.

Market Reaction

The combination of strong earnings momentum and an improved financial position sent Saga's stock to a new 52-week high, making it the top performer in the FTSE 250 index. The positive company-specific news far outpaced a modest gain in the broader mid-cap index, underscoring investor confidence in the firm's turnaround story.