Shares in business travel agency Corporate Travel Management (CTM) nose-dived after it warned it would take a A$30 million (US$19.2 million) hit to earnings in the 2025 financial year (FY25) due to economic and tariff uncertainty.
The company said it expected revenue in FY25 to be 4% lower than forecast and earnings before interest, tax, depreciation and amortisation (EBITDA) to be affected by about $30m relative to the target metrics presented in its first half results.
“In rest of World (ROW) ex Europe, broad economic and tariff uncertainty in North America and Asia has led to reductions in client activity, resulting in slower growth than expected during what is traditionally the busiest period of the year,” CTM said in an ASX announcement.
“As a result, we now expect RoW revenue and EBITDA growth to be approximately +5% and +10% respectively versus FY24.”
At the time of writing Corporate Travel Management (ASX:CTD) shares were trading $1.36 or 10.46% lower at $11.64, capitalising the company at $1.7 billion, after trading between $11.35 and $12.31.
In its half-year results, CTM forecast EBITDA growth of 27.5% in FY25 compared with $201.7 million in FY24, implying growth of $50.425 million, before this profit warning.
New client wins year surpassed a total transaction value (TTV) of $1.6 billion with about half generated in Europe, which was significantly above the annual target of $1.0 billion and expected to contribute to FY26 metrics.
Client retention remained on track at 97% and cash flow was strong in line with the indication for full year cash conversion of 80-90% provided in February.
“This outlook assumes the tariff uncertainty impacting March and April activity remains through the remainder of the financial year and there is no further deterioration in April client activity in May and June,” the company said.
The company said it expected FY26 group metrics to be updated in its FY25 full year August results.
