Corporate Travel Management (CTD) H1 2025 earnings summary

Executive summary

• 1H 2025 was a transition year, especially in Europe due to cycling off one-off war-related projects, while Rest of World (ROW) regions drove growth and highlighted effective strategy execution.

• Group 1H EBITDA reached $77.4 million, with margin at 23%, impacted by one-off project costs; underlying EBITDA down 23% year-over-year.

• Net profit after tax attributable to owners was $28.5 million, down 42% year-over-year, with revenue declining 6% to $339.6 million.

• Strategic focus on automation, proprietary technology, and disciplined capital management, aiming to double EPS in five years.

• Strong capital management: no debt, $52.3 million returned to shareholders via dividends and buybacks in 1H25.

Financial highlights

• ROW (ANZ, NA, Asia): 1H EBITDA up 38% to $66.7 million, margin expanded 500 bps to 23%, and revenue up 8% year-over-year.

• Australia & New Zealand: 1H revenue up 18% to $96.1 million, EBITDA up 53% to $28.5 million, margin up 700 bps to 30%.

• North America: 1H EBITDA up 49% to $30.5 million, margin up 500 bps to 19%, revenue up 6% to $159.9 million.

• Europe: 1H EBITDA $21.8 million, margin 38.6%, 13% CAGR on FY 2023, despite reduced government spend and transition costs.

• Asia: Revenue down 7% to $30.1 million, EBITDA down 15% to $7.7 million, impacted by 25% price deflation but supported by new client wins.

Outlook and guidance

• Rest of world expected to deliver revenue growth above 8% and profit margins above 23% in 2H 2025.

• FY 2025 guidance: ROW revenue up ~10%, EBITDA margin ~27.5%, implying 35% EBITDA growth on FY 2024.

• Europe FY 2025 revenue expected down ~24% vs FY 2024, but EBITDA margin to remain strong at ~43%.

• FY 2026 indicative metrics: group revenue growth ~10%, EBITDA margin ~30%, CapEx ~$40 million, with Europe as a significant growth contributor.

• Management expects stronger profit and revenue in 2H25, with Sleep Space rollout and automation driving future growth.