Corporate Travel Management (CTD) H1 2025 earnings summary

Executive summary

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

• Underlying EBITDA for 1H25 was $77.4 million, down 23% year-over-year, with EBITDA margin at 23%, impacted by one-off project costs.

• 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, with ongoing initiatives like Sleep Space and Lightning OBT.

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

Financial highlights

• Revenue for 1H25 was $339.6 million, down 6% year-over-year; underlying EBITDA was $77.4 million, down 23% year-over-year.

• Underlying NPAT attributable to owners was $38.7 million, statutory NPAT was $28.5 million, both down year-over-year.

• Basic EPS fell to 19.9 cents from 33.8 cents year-over-year; net tangible assets per share dropped to 124 cents.

• Operating cash conversion was 25% in 1H25 due to supplier payment cycle, with full-year conversion expected at 80–90%.

• Interim dividend of 10.0 cents per share declared, payable April 2025; $33.1 million spent on share buybacks in 1H25.

Outlook and guidance

• FY25 guidance: ROW revenue growth ~10%, EBITDA margin ~27.5%; Europe expected to see revenue down ~24% but margin strong at ~43%.

• FY26 indicative targets: group revenue growth ~10%, EBITDA margin ~30%, CapEx ~$40 million.

• Management expects stronger profit and revenue in 2H25, with Europe and Asia set for recovery due to new client wins and stabilizing ticket prices.

• Global rollout of Sleep Space and automation expected to drive higher revenue yields and operational efficiencies.