Corporate Travel Management (ASX:CTD) has disclosed first quarter results for the period ended 30 September 2026, reporting total transaction value of $2,545.7 million, transaction volumes of 4,553,000, and underlying EBITDA of $23.5 million, alongside client TTV retention of more than 97% year to date.

Key Points

  • Q1 FY27 TTV of $2,545.7 million, with revenue of $158.3 million and a revenue-to-TTV margin of 6.2%
  • Transaction volumes rose 3.3% year on year to 4,553,000; underlying EBITDA declined to $23.5 million from $37.6 million in Q1 FY26
  • New business wins of $258 million and re-signed TTV of $684 million year to date
  • IATA released its $65 million security guarantee in October 2026 and restored CTM's previous settlement cycles, expected to reduce working capital requirements by approximately $30 million
  • CTM held cash and cash equivalents of $116 million at 30 September 2026, with $75 million drawn under the PEP financing facility

First Quarter Financial Performance

According to the filing, Q1 FY27 TTV of $2,545.7 million compared with $2,645.8 million in Q1 FY26, a decline of 3.8%, or an increase of 1.9% on a constant currency basis. Revenue of $158.3 million declined 8.5% reported and 3.4% in constant currency terms. The revenue-to-TTV margin decreased 30 basis points to 6.2%. Underlying EBITDA of $23.5 million compares with $37.6 million in the prior corresponding period, with the filing attributing the decline to lower revenue, increased regional operating costs particularly in the UK, higher Group costs, and adverse exchange rate movements.

Regional Operating Conditions

The filing disclosed that in North America, transaction volumes remained broadly flat while TTV increased, largely reflecting higher airfares, with flat transaction volumes limiting growth in transaction fee income. In ANZ, lower transaction volumes contributed to reduced TTV and revenue, with underlying revenue-to-TTV margin declining compared to the prior year. In UK/EU, lower hotel accommodation activity associated with UK special projects reduced TTV and revenue compared to the prior year, though the revenue impact was partially offset through improved margins on individual customer contracts. Share trading on ASX recommenced on 3 September 2026.

Balance Sheet, Capital Expenditure and Settlement Liabilities

CTM disclosed cash and cash equivalents of $116 million at 30 September 2026, with $75 million drawn under the PEP financing facility. Corporate costs are expected to be around $39 million in FY27, and capital expenditure is expected to range between $30 million and $35 million for the year. Non-recurring costs of around $25 million in FY27 are anticipated. During Q1, CTM made payments totalling $66 million representing 33% of the $198 million UK settlement liabilities recognised at 30 June 2026. GBP15.3 million of settlement adjustment gains have been realised to date, and CTM continues to engage with other affected customers to progress outstanding settlements.