Key Highlights

• CTD shares fell 9.91% to $2.00 on 9 September 2026 despite reporting its FY26 results on 1 September.

• Underlying EBITDA rose 36% to $113.6 million; Group delivered NPAT of $17.7 million versus a loss of $348.5 million in FY25.

• Customer remediation substantially advanced, with approximately 78% of refunds agreed or close to finalisation.

• Reinstatement of ASX trading remains subject to determination by ASX following lodgement of all required documents.

Shares in Corporate Travel Management Ltd (ASX:CTD) declined 9.91% to $2.00 on 9 September 2026, with the market continuing to weigh the company's FY26 recovery progress against the unresolved remediation obligations and trading suspension that continue to cloud the Investment case. The FY26 results, released on 1 September 2026, showed meaningful underlying Earnings improvement but earnings remain below historical levels and the reinstatement of trading on the ASX remains pending a determination by the exchange.

FY26 Financial Performance: Recovery Trajectory in Place

Corporate Travel Management's FY26 results reflect a Business in recovery. Revenue and other income increased 4% to $669.9 million, while underlying EBITDA rose 36% to $113.6 million from $83.6 million in the prior period. The Group delivered a net profit after tax of $17.7 million — a significant improvement from the $348.5 million loss recorded in FY25, though the prior year loss reflected the impact of significant historical provisioning.

Transaction volumes increased 13% to 18.3 million across all four operating regions, reflecting improved customer activity and the benefit of the company's retained client base. Total transaction value was $9,800 million, a 2% increase. Cash at 30 June 2026 was $106.9 million, including $15.8 million of client cash. Subsequent to year-end, the company secured a $175 million committed funding package to provide financial flexibility through the completion of remediation activities.

Regional Performance: Strengths and Weaknesses

The geographic breakdown of earnings reveals both recovery momentum and areas where performance remains constrained. Australia and New Zealand delivered revenue growth of 6% to $181.4 million, with underlying EBITDA rising 53% to $39.2 million — a standout improvement. Europe reported a turnaround, with revenue increasing 34% to $113.7 million and underlying EBITDA improving to $24.7 million from a loss of $1.2 million in FY25, supported by increased special project activity and improved contract economics.

North America delivered underlying EBITDA of $62.3 million, broadly in line with FY25 despite foreign exchange headwinds — a performance the company characterised as reflecting the segment's scale and resilience. Asia delivered underlying EBITDA of $15.8 million while continuing to show Volume growth and client retention. Revenue declined in the first month of FY27 to approximately $53.3 million from $58.3 million in the prior corresponding period, a development the company attributed to seasonal patterns, client mix and foreign exchange impacts.

Remediation Progress and Liquidity

Customer remediation remains a material unresolved matter for the company. CTM made progress during FY26, with approximately 78% of refunds agreed or close to finalisation by year-end. The 22% of cases still to be resolved represent an ongoing financial and reputational obligation. The $175 million committed funding package secured post year-end is intended to provide the financial flexibility to complete remediation activities while continuing to support ongoing business operations.

The Australian Government Department of Finance released summary findings of an independent review of CTM's management of the Whole of Australian Government Travel Arrangements on 31 August 2026. The review concluded there was no evidence of widespread or systemic overcharging and highlighted the strength of the program's governance framework, centralised oversight, automated controls and reporting processes — a finding that partially addresses concerns about the breadth of the historical issues.

ASX Reinstatement and FY27 Outlook

CTM has lodged all documents due in relation to FY25 and FY26 with the ASX. The reinstatement of trading in CTM's securities remains subject to a determination by ASX. The company will provide further updates as information becomes available. The Board's priorities for the coming period are completing remediation activities, strengthening the balance sheet, embedding governance and control enhancements, and continuing to improve operating performance across the Group.

Management reported that trading in July 2026 was broadly in line with expectations, with transaction volumes increasing to approximately 1.6 million from 1.5 million in the prior corresponding period. The company also won GBP 28 million in estimated TTV from the renewal of the UK Ministry of Defence Afghan Resettlement Programme contract for the first six months of the contract term, effective early August 2026. Stewart Harvey was appointed CEO UK/Europe effective 7 September 2026 following an extensive search.

Conclusion

Corporate Travel Management's FY26 results demonstrate that the underlying business has retained meaningful earning power through a period of significant operational and reputational disruption. The 36% improvement in underlying EBITDA and the return to profitability are genuine positives. However, the incomplete remediation process, the pending ASX reinstatement determination, and the earnings level that remains below historical norms mean that the recovery narrative is still a work in progress. The pace of remediation completion and the timing of ASX reinstatement are likely to be the most influential near-term variables for investors.