CTM Returns to Profit with $17.7 Million Net Income in FY26

Profit Turnaround and Revenue Growth

Corporate Travel Management Limited (ASX:CTD) has emerged from a turbulent period with a solid profit of $17.7 million for the year ended 30 June 2026, a dramatic turnaround from the $348.5 million loss recorded in FY25. Revenue rose 5% to $665.9 million, supported by a 36% lift in underlying EBITDA to $113.6 million.

The rebound reflects meaningful progress in stabilising the business after a year marked by accounting irregularities and operational challenges, particularly in the UK division. Earnings growth was most pronounced in the Australia & New Zealand (ANZ) and Europe regions, with ANZ’s underlying EBITDA climbing 53% to $39.2 million and Europe returning to profitability with $24.7 million EBITDA, a swing from a $1.2 million loss in FY25.

Customer Remediation Advances and Funding

CTM has substantially advanced its remediation program for historic customer refund liabilities, primarily linked to its UK operations. Approximately 78% of refund obligations have been agreed or are close to finalisation, with settlement agreements reached for $166.6 million of customer related liabilities. These agreements include contractual rights to defer payments into FY27 and FY28, providing the Group with critical cash flow flexibility.

Supporting this effort, CTM secured a $175 million committed funding package post-year end, replacing a previous $75 million facility and extending maturity to 2029. This package includes a $65 million guarantee facility for the International Air Transport Association (IATA) and $175 million in three tranches of funding, strengthening liquidity as the Group completes remediation and continues operations.

Governance, Leadership, and Operational Progress

The company has made governance and control enhancements a priority, embedding a comprehensive Governance Uplift Program across its global operations. Leadership transitions during the year saw Ana Pedersen appointed Managing Director and Group CEO in July 2026 after serving as Acting CEO since February, while Stewart Harvey was named CEO UK/Europe effective September 2026, succeeding interim CEO Eleanor Noonan.

CTM’s client franchise demonstrated resilience with $669 million in new business wins and $1.5 billion in re-tenders and renewals secured during FY26, underscoring continued market confidence. Transaction volumes increased 13% to 18.3 million, highlighting growing customer engagement despite the challenges.

Financial Position and Dividend Suspension

At 30 June 2026, CTM held $106.9 million in cash, including $15.8 million in client cash, and reported net assets of $582.5 million. The Group remains debt-free excluding lease liabilities but faces increased bank guarantees, primarily for IATA security requirements.

Reflecting ongoing remediation and the need to preserve liquidity, the Board declared no dividend for FY26, continuing the suspension from FY25. Net tangible assets per share improved to negative 15 cents from negative 52 cents in the prior year.

Sustainability and Climate Disclosures

CTM’s Sustainability Report, prepared under the Australian Sustainability Reporting Standards, outlines the Group’s climate-related governance and risk management framework. The company has set interim targets for renewable energy use and carbon offsetting, achieving 40% renewable energy consumption through Energy Attribute Certificates and offsetting 100% of employee business travel emissions in FY26.

Climate-related risks are incorporated into enterprise risk management, with scenario analyses indicating no material impact on CTM’s business model over a five-year horizon. The Group continues to invest in technology and operational improvements to support sustainability objectives.

Audit and Reporting Notes

The FY26 financial statements were audited by Deloitte Touche Tohmatsu, who issued a modified opinion due to unresolved prior year audit limitations related to CTM Europe’s trade receivables and payables. The FY26 audit was unqualified for the current year balances. The Directors confirmed the Group is a going concern, supported by liquidity forecasts and financing arrangements.

CTM has lodged all outstanding FY25 and FY26 documents with the ASX and awaits reinstatement of trading. The Board plans to provide further guidance at the upcoming Annual General Meeting in November 2026.