Corporate Travel Management (ASX: CTD) has delivered a reassuring start to FY26, reporting a 29 per cent surge in underlying EBITDA to $40.9 million for the September quarter. The Brisbane-based travel giant continues to operate smoothly despite its ongoing trading suspension.
Revenue for the three months to 30 September rose 6% to $180.2 million, underscoring the company’s resilience and client retention across its major global markets.
In a statement to investors, CTM stressed that “business operations remain unaffected” by the ongoing review of its FY23-FY25 financial statements and the audit of FY25 accounts. Despite the delay, the company said all customer and supplier commitments were fulfilled “as usual”.
The company remains suspended from trading, with a further update expected in November.
Trading steady amid audit delay
For a firm whose balance sheet once weathered the pandemic’s collapse in corporate travel, CTM’s current predicament has an air of déjà vu. Still, this time, the turbulence is more regulatory than financial.
The company confirmed that its FY25 results remain subject to the ongoing audit, which assesses any potential restatement of prior-year figures. CTM has already flagged to the ASX that comparative results 1Q25 may be reduced once this process concludes.
That hasn’t shaken operational momentum. Revenue recognition and other accounting policies remain unchanged, allowing the group to keep its focus on clients rather than compliance.
“Day-to-day operations continue normally,” CTM reiterated, to soothe investors worried about accounting ghosts that might linger from past periods.
Stronger liquidity, no debt – a contrast worth noting
If there’s a silver lining to the paperwork pause, it’s that CTM’s finances are anything but fragile.
The group closed September with $168 million in cash and no drawn debt, a clear statement of solvency. Its available liquidity ballooned 66 per cent to $318 million, helped by a 50 per cent increase in its debt facility to $150 million.
It’s a neat contrast: a business under audit scrutiny, yet holding more cash than many of its travel peers.
Europe leads, Asia lags.
The quarter’s standout performer was Europe, where EBITDA growth outpaced all other regions. This was thanks to a string of customer wins in FY25 and expanding government panel contracts late in the year.
Having “cycled off a weak first half” in FY25, CTM’s European operations have bounced back decisively, demonstrating that government work often takes longer to secure but stickier once won remains a dependable source of growth.
In North America, corporate travel recovery has been gaining momentum month-on-month since May, mirroring positive commentary from the major airlines.
The Australia–New Zealand market proved steady, with stable customer activity despite cycling off a strong prior year.
The only soft spot was Asia, where tariff uncertainty and ongoing exposure to Greater China continue to weigh on performance. The company noted “regional headwinds” are likely to persist in the near term, although the longer-term Asia strategy remains intact.
Growth by scale, not cost cuts
One of CTM’s hallmarks since its founding by Jamie Pherous has been its lean, data-driven business model, and the latest update suggests that this efficiency ethos continues to deliver.
The company’s global EBITDA margin expanded from 19 per cent to 23 per cent, reflecting its ability to leverage automation, AI, and regional scale rather than slash costs.
That margin lift, equal to 400 basis points, was achieved without major reductions in headcount or service capability — a noteworthy feat in a sector where post-pandemic recovery has often come via austerity.
As the update noted, CTM’s incremental revenue-to-EBITDA metric is “tracking ahead of expectations” in its five-year strategic plan, signalling that every new business dollar generates more substantial returns than forecast.
Customer retention at 98 per cent
Retention remains CTM’s ace card. In FY25, the group retained 98 per cent of customers, well above industry norms, while surpassing its annual target for new business.
FY25 customer wins reached $1.72 billion, compared with a forecast of $1 billion, and by 30 September, FY26 wins already stood at $430 million, towards a full-year forecast of $1.1 billion.
Such figures suggest CTM’s reputation for personalised service and technology-enabled travel management remains intact a critical differentiator in an industry often accused of commoditising relationships.
Seasonal patterns and the year ahead
Management reminded investors that the company’s profitability has a traditional seasonal skew, with stronger earnings in the second half of each financial year as business travel typically rises.
FY26 guidance will be provided once the FY25 audit is complete. However, early signs point to another year of growth, driven by scale efficiencies, steady demand in established markets, and gradual recovery in Asia.
In the understated language of CTM’s investor relations team, “the business continues to operate as usual.” In corporate Australia, that phrase can often sound like a platitude, yet in this case, it reads like quiet confidence.
An unusual calm during a trading pause
CTM’s composure is remarkable for a company still suspended from trading on the ASX. Its communication tone is one of control, not crisis, and investors appear willing to wait for the next chapter.
The ever impatient market will watch November’s update for signs of closure on the audit review. But in the meantime, CTM’s message is simple: the planes are still flying, the clients are still booking, and the cash is still flowing.
A little administrative headwind is hardly enough to force a diversion for a travel management firm that has spent 30 years navigating turbulence.
By Prae Lee
About the Author
You can tell a lot about a person by how they handle a busy Bangkok morning. Prae Lee doesn’t rush; she glides through it. There’s a calm certainty about her, the sort that comes from knowing where you come from and where you’re going.
Educated at Chulalongkorn University, she took her business degree with the quiet pride of someone who believes in doing things correctly. Her travels for further study in Singapore and Australia didn’t change her; they polished what was already there: curiosity, discipline, and grace.
She returned to her family business in Bangkok, breathing a little modern life into it. She handled social media with the intuition of someone who listens and sells with the gentle persistence the Thais do so well.
Prae doesn’t make a fuss, but everything she touches shines brighter.
Now part of the Global Travel Media family, Prae brings authenticity and quiet confidence to her writing, drawing from a life steeped in culture, travel, and connection.
