SABR Morgan Stanley TMT 2026

All right. Before we begin, for important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/research disclosures. And if you have any questions, please reach out to your Morgan Stanley sales representatives. My name is Josh Baer, software analyst at Morgan Stanley.

Thrilled to have the Sabre leadership team here with us today, Kurt Ekert, CEO; and Mike Randolfi, CFO. Thank you so much for joining us.

Great to see you. Maybe let's kick it off with the exciting news around shareholder rights before we get into AI and business, can you give some background on the recent shareholder rights plan with regard to constellation. What does it entail? What is it in response to?

Yes. So you saw the press release we issued on Sunday evening and there were other disclosures we issued as well. that was in response to a significant cumulation of shares by constellation Sabre shareholder and we took this action to protect the company as well as shareholders. So beyond that, we're not going to comment publicly today.

But we believe this -- what we have spoken to a number of investors and analysts and generally we received a favorable response and folks understand why we done this.

Okay. we saw the market response as well. So Kurt from your perspective to kick it off, what were some of the most important Sabre accomplishments over the last year and what are your priorities as we head into 2026?

Yes. We articulate our strategy with 2 key elements. One is delevering. Last year, we paid down $1 billion of debt, dramatically improved our leverage ratio.

And so we're dramatically improving the balance sheet quality of the business. And then 2 is it's growth through innovation. So last year, some of the key accomplishments were the introduction of MCP server and Agentic-AI. As you saw earlier this year, we've announced a number of key partnerships with Egentic, great innovation with respect to the Sabre Mosaic Airline platform.

we're seeing great traction, especially on the offer side of the portfolio there. And then within distribution, significant conversion of 1 new business, the expansion of our air distribution marketplace and then very strong growth with both with hotel distribution as well as our payments portfolio. So a really good year, both from a balance sheet and an innovation