Corporate Travel Management Limited reported a net loss after tax of $346.7 million for FY25, a result primarily driven by goodwill impairments of $357.7 million. The headline loss masks an underlying business that remains profitable, with underlying EBITDA of $83.6 million and the company forecasting a recovery to $113.6 million in FY26. The impairment reflects an extensive review of historical contractual, accounting and governance matters across the group that identified customer remediation obligations.
The review identified three principal customer remediation issues: UK client contracts, European air margin arrangements, and ANZ supplier rebates and other contractual matters. These issues resulted in an accounting liability forecast at $234 million as at 30 June 2026. The company has made substantial progress on remediation, with approximately $191 million (approximately 78 percent) of the total refund program either agreed or close to finalization, and a further $55 million to be remediated. This provides greater certainty on the amount, structure and timing of customer payments, with the majority of agreed settlements subject to payment arrangements extending through to Q1 FY28.
The underlying operational metrics tell a more encouraging story. Total Transaction Value increased from $9.1 billion in FY24 to $9.6 billion in FY25, with forecasts reaching $9.8 billion in FY26. Revenue remained resilient at $643.4 million in FY25 and is forecast to increase to $669.9 million in FY26. Client retention remained strong throughout the review period, the company continued to win new business, and transaction volumes increased to 18.3 million in FY26. The resilience of the underlying business, coupled with the forecast return of underlying EBITDA to FY24 restated levels, suggests the remediation issues do not reflect fundamental problems with the core travel management franchise.
CTM has put financial arrangements in place to manage the remediation program. The company holds approximately $107 million in cash as at 30 June 2026 and has a $175 million committed funding package to meet remediation payments and ongoing funding of the business. The company has also implemented significant governance, leadership and control enhancements across the group and launched its CTM One strategy to support higher-quality growth and improved operating leverage. Management noted that first month of FY27 trading was in line with expectations.
Investors will be watching the execution of the customer remediation program over the coming months, the tracking of revenue and EBITDA against FY26 forecasts, and the early performance of the CTM One strategy. The announcement is price sensitive and has been flagged as material by the ASX.
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About Corporate Travel Management Limited (ASX: CTD)
Corporate Travel Management Limited is a travel management solutions company that manages the procurement and delivery of travel services across Australia and New Zealand, North America, Asia, and Europe. The company provides corporate travel, meetings and events management, resources travel, sports travel, leisure travel, loyalty travel, and accommodation agency services. It was founded in 1994 and is headquartered in Brisbane, Australia.
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