AMC Entertainment Holdings, Inc. Q4 FY2025 earnings call

Adam Aron shared his recovery from a minor stroke. AMC had meaningful progress in 2025 operationally and financially. Sean Goodman discussed financial results by segment, balance sheet, and theater portfolio transformation. Adam Aron also talked about AMC's marketing and loyalty programs, collaborations with Netflix, and investment in Hycroft Mining. They also discussed theater portfolio actions like closing underperformers and adding spot acquisitions, and CapEx allocation for maintaining theaters and upgrading theater experiences

For 2025, consolidated revenue grew 4.6% vs 2024 to over $4.8 billion, adjusted EBITDA grew to approx $388 million, nearly 13% y-o-y. U.S. operations: admissions revenue grew 3.9%, outperforming NA box office, total revenue grew 4.6%, adjusted EBITDA up nearly 15%, per patron metrics record-breaking. International operations: revenue grew 4.6% or flat in constant currency, attendance down 5.5%, adjusted EBITDA down 2.1% or 10% in constant currency, per patron metrics record-breaking with total revenue per patron $17.97 and contribution margin per patron $12.61 in constant currency, total international revenue per patron up 32% vs 2019, international contribution margin per patron up 37% vs pre-pandemic 2019

Expect industry box office to grow markedly in 2026, North American box office could increase by approx $500 million to over $1 billion vs 2025. Anticipate rising revenues to lead to substantial growth in adjusted EBITDA due to operating leverage. Strengthening balance sheet remains a priority, with ongoing efforts to extend debt maturities, reduce debt servicing costs, etc. 2026 CapEx net of lease incentives expected to be between $175 million to $225 million

Numerous risks, uncertainties and other factors may cause actual results to differ materially from forward-looking statements. Many risks discussed in recent public filings including 10-K and 10-Q. Uncertainties in industry recovery pace, potential union strikes affecting movie production, and other factors beyond company control

Q: How is AMC thinking about its fleet/portfolio given strong content outlook for 2026 and new builds?

A: Sean Goodman said they'll continue closing underperformers and opening more profitable ones, with small number of new theater locations in CapEx. Adam Aron added new build theaters are more expensive than spot acquisitions.

Q: Gut feel on international admission revenues vs North America in 2026?

A: Adam Aron said Europe recovering faster than US, dollar weakness making overseas revenues stronger in US dollars.

Q: Future changes/innovations in food and beverage?

A: Adam Aron mentioned freshly baked cookies, better pizza, growth of movie-themed merchandise.

Q: Relationship with studios and union negotiations?

A: AMC has strong relationships with studios, union negotiations not at table but studios taking them seriously.

Q: Allocation of CapEx spend?

A: $150 million maintenance capital, upgrading theater experiences like adding IMAXs, Dolby Cinemas, doubling XL screens, and capital-light solutions for high volume theaters like the AMC Club Rocker seat