AMC's Europe Business Roars Back: Can International Growth Continue?

AMC Entertainment Holdings AMC delivered a standout second-quarter 2026 performance, with its European operations emerging as a key growth driver.

Attendance across Europe jumped 17.9% year over year, outpacing the relevant industry’s 16.2% growth. More strikingly, European adjusted EBITDA surged 337% to $35.8 million, helping demonstrate the strong operating leverage in AMC’s international business.

The company appears well positioned to sustain this momentum. Management highlighted significant opportunities to upgrade European theaters, particularly through recliner seating and ODEON Luxe conversions. These initiatives have generated high returns, while AMC can also secure co-funding from landlords and technology partners, reducing the capital burden. Management noted that recliner penetration in Europe remains higher than in the United States, indicating further room for premiumization.

Premium large-format screens offer another avenue for growth. AMC plans to expand its premium and extra-large-format footprint across the United States and Europe, benefiting from higher ticket prices and strong demand for enhanced moviegoing experiences.

A strong movie slate should also support attendance. Management expects 2026 to be the strongest post-pandemic year for the global box office, providing a favorable backdrop for AMC’s European theaters.

However, currency movements can affect reported international results, with European currency appreciation contributing about 2% to second-quarter international revenue and EBITDA growth. Overall, continued attendance gains, premium upgrades and disciplined investment suggest Europe could remain an important growth engine for AMC.

AMC’s Price Performance, Valuation & Estimates

Shares of AMC have surged 104% in the past six months compared with the industry’s 5.1% growth. In the same time frame, AMC has outperformed industry players like Cinemark Holdings, Inc. CNK and The Marcus Corporation MCS.

AMC’s Price Performance

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From a valuation standpoint, AMC trades at a forward price-to-sales (P/S) multiple of 0.41, below the industry’s average of 2.97. Cinemark and Marcus have P/S ratios of 0.97 and 0.82, respectively.

AMC’s P/S Ratio (Forward 12-Month) vs. Industry

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The Zacks Consensus Estimate for AMC’s 2026 loss per share indicates a 77.1% year-over-year improvement. Conversely, industry players like Cinemark and Marcus are likely to witness growth of 125% and 652.9%, respectively, year over year in 2026 earnings.

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AMC’s Zacks Rank

AMC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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