The Corporate Travel Management Ltd (ASX: CTD) share price is down close to 10% after a disappointing FY25 update.
As its name implies, the business provides travel management services for businesses around the world.
Weak ending to FY25
The ASX travel share said it expects FY25 revenue to be approximately 4% lower than forecast, which is likely to impact overall EBITDA by around $30 million compared to its target metrics from the HY25 result announcement.
In its rest of the world (RoW) segment, excluding Europe, the company said broad economic and tariff uncertainty in North America and Asia has led to reductions in client activity resulting in slower growth than expected in what’s normally the busiest period of the year.
Due to those difficulties, RoW revenue and EBITDA growth is expected to be up 5% and 10%, respectively, compared to FY24.
The company said previously announced target metrics for Europe remain on-track.
Its outlook assumes the tariff uncertainty impacting March and April activity remains through the rest of the 2025 financial year, with there being no further deterioration to April client activity in May and June.
Client wins
New client wins in the year to date amount to more than $1.6 billion of total transaction value (TTV), with approximately half of that coming from Europe. This was significantly more than its annual target of $1 billion and is expected to be a positive contributor to its FY26 metrics, that was previously announced to the market in February 2025.
The company said that client retention remains on track at 97%.
Other commentary
Corporate Travel Management said cashflow has been strong and in-line with full-year cash conversion of between 80% to 90%, provided in February.
The share buyback program is still going on, with approximately 5.8 million Corporate Travel Management shares purchased at a cost of $78.2 million since the start.
The ASX travel share said it expects its FY26 group metrics will be updated in August with its FY25 result.
Final thoughts on the Corporate Travel Management share price
How much pain will the tariffs and uncertainty cause to the profit? How long will it last? It’s hard to say.
It’s still predicting growth in FY25, but I’d say FY26 could go either way. It’s not the sort of ASX share I’d want to buy at this stage because of the uncertainty, there are other ASX growth shares that seem more attractive to me.
