Hilton Worldwide Holdings (0J5I.L) Q4 2024 Earnings Report

Hilton Worldwide Holdings Inc reported a solid QQ4 2024 with revenue of $2.783 billion, up 6.7% year over year, and a resilient profitability backdrop underscored by a 24.04% gross margin and an 18.1% net margin. The quarter delivered $532 million of EBITDA and $582 million of operating cash flow, contributing to a free cash flow generation of $503 million. Net income rose sharply to $505 million, driving EPS (diluted) to $2.05, supported by favorable mix and cost discipline despite ongoing macro and operational headwinds typical of a lodging cycle.

However, the balance sheet presents a material leverage challenge: total debt stands at $12.0 billion with net debt of roughly $10.7 billion and negative stockholders’ equity of about $3.7 billion. This annual and quarterly profitability strength sits against a backdrop of substantial liabilities that translate into a high debt-to-capitalization profile (reported around 1.41x) and a negative book value per share. While Hilton generated meaningful free cash flow and executed a sizable share repurchase (~$766 million) in the period, the aggressive leverage requires ongoing attention to deleveraging dynamics and capital allocation strategy. The absence of explicit quarterly forward guidance in the data requires a cautious stance on the near-term trajectory, though the travel-and-leisure backdrop remains a positive catalyst for continued revenue resilience and brand-driven profitability.