CTM Posts AUD 77.7M EBITDA in 1H FY26 Despite Audit Delays

Solid Trading Amidst Audit Delays

Corporate Travel Management (CTM) has delivered a robust trading update for the first half of FY26, despite ongoing challenges related to the delayed audit of its FY25 financial statements. The company reported unaudited revenue and other income of AUD 348.5 million, with an underlying EBITDA of AUD 77.7 million, reflecting a healthy margin of 22.3%. This performance underscores CTM’s operational resilience and the strength of its client relationships during a period marked by uncertainty.

CTM’s cash balance remained strong at AUD 121.2 million as of 31 December 2025, only slightly down from AUD 124 million in June 2025. This stability comes despite significant one-off costs, including payments related to the UK remediation program and working capital impacts from revised IATA arrangements.

Progress on UK Forensic Review and Remediation

The company is nearing the completion of a forensic accounting review of its UK operations, a process that has delayed the release of audited financials for FY25. CTM has made meaningful strides in finalising a remediation plan with key UK customers, including AUD 15 million in payments made in December 2025. These efforts aim to resolve outstanding issues and enable the issuance of audited FY25 financial statements.

CTM is targeting the release of these audited results, alongside reviewed 1H FY26 financials, and the reinstatement of its shares on the ASX by the second quarter of calendar year 2026. The company has also confirmed that no material issues similar to those in the UK have been found in other regions, which should reassure investors about the broader health of the business.

Regional Performance and Client Retention

Across its global footprint, CTM continues to demonstrate strong client retention rates, consistently above 97%, supported by its proprietary technology and customer service focus. The Australian and New Zealand segment maintained a 98% client retention rate, buoyed by new client wins and organisational improvements. North America showed resilience despite macroeconomic headwinds, including a government shutdown, with a 97% client retention rate and high adoption of online booking tools.

Asia delivered solid year-on-year growth with near-perfect client retention, while Europe experienced strong growth driven by corporate and government contracts, although some moderation is expected in the second half of FY26 as certain contracts conclude.

Looking Ahead: Cautious Optimism

CTM’s management acknowledges that trading conditions remain difficult to predict, with some softness anticipated in the second half of FY26 due to the lingering uncertainty around the audit process and its impact on client decision-making. Nevertheless, the company continues to invest strategically, with AUD 19 million allocated to capital expenditure focused on technology, automation, and enhancing customer outcomes.

Acting Group CEO Ana Pedersen emphasised the company’s commitment to improving governance and controls while navigating the remediation process. The progress made so far provides a clearer path forward, offering renewed confidence to customers and stakeholders alike.