CTM Reaffirms Share Buy-Back as Travel Rebounds

About Corporate Travel Management Limited

Corporate Travel Management Limited (ASX: CTD) is a leading global provider of corporate travel solutions, offering end-to-end travel services to government, enterprise, and small-to-medium business clients across Australia, North America, Europe, and Asia. The company combines proprietary technology platforms with personalised service delivery, positioning itself as a high-margin operator in a structurally growing segment of the travel industry. Known for its capital efficiency and agility, CTM has grown both organically and through acquisitions, emerging as one of the largest travel management companies in the world. In its latest announcement, the company has reaffirmed its commitment to a share buy-back program as part of its capital management strategy.

Buy-Back Program Overview

In its update to the ASX this week, Corporate Travel Management confirmed that it will continue executing its previously announced on-market share buy-back, with approval to repurchase up to 10% of its issued share capital. The program is intended to optimise capital allocation, enhance shareholder value, and reflect the Board’s confidence in CTM’s financial performance and outlook.

The buyback was first initiated in late 2024 as the company emerged from pandemic-era travel restrictions with renewed growth momentum. Since then, CTM has steadily repurchased shares on-market, taking advantage of favourable valuation conditions while maintaining strong liquidity across its operating regions.

The company stated that it would continue to monitor market conditions and cash flow generation in determining the pace and timing of future buybacks. There is no set schedule or end date, allowing the program to operate flexibly in accordance with prevailing financial conditions and strategic priorities.

Strengthening Fundamentals Support the Initiative

CTM’s decision to continue with the buy-back comes as the company delivers consistent improvements in earnings and cash flow, driven by the ongoing recovery of global business travel and the resilience of its client base. In its most recent half-year results, the company reported revenue of $408 million and EBITDA of $91.5 million—well above pre-COVID levels—reflecting strong demand across all regions.

North America and Europe have emerged as key growth engines, with CTM winning new multi-national contracts and scaling operations through technology-led service delivery. In Australia and New Zealand, domestic corporate travel remains robust, underpinned by government and professional services demand.

Importantly, the company has returned to strong free cash flow generation, supported by improving margins, disciplined cost control, and favourable payment cycles. This financial strength has enabled CTM to pursue its buy-back program without compromising its investment in technology platforms or global sales expansion.

Market Reaction and Shareholder Sentiment

The market has responded positively to the buy-back update, with CTD shares rising 2.1% following the announcement to close at $20.18 on the day. The move has been interpreted by investors as a signal of management’s continued confidence in the company’s trajectory and underlying valuation.

Buy-backs are generally seen as a shareholder-friendly mechanism, particularly when executed at times of perceived undervaluation. For CTM, the program provides a capital-efficient method to return value while avoiding the permanence of dividend increases or the complexities of large-scale acquisitions in a competitive environment.

The flexibility of the buy-back structure also allows the company to respond dynamically to changing market conditions, supporting prudent capital deployment across the cycle. CTM has reaffirmed that the program will remain under regular review in line with broader financial planning and operating performance.

Capital Management and Balance Sheet Strength

CTM remains well capitalised, with a net cash position and no material refinancing risks over the next two years. The company’s balance sheet flexibility provides headroom to fund ongoing investments in product development, client acquisition, and future M&A opportunities, while also supporting capital return programs such as the share buy-back.

As of 31 December 2024, CTM reported net cash of $81 million and total available liquidity of over $200 million, underscoring its strong financial resilience. The company’s capital allocation framework continues to prioritise balance sheet strength, growth reinvestment, and opportunistic shareholder returns.

Management also noted that future buy-back activity would remain within thresholds designed to preserve credit metrics and support operational agility across international markets.

Strategic Outlook and Future Priorities

Looking ahead, CTM is focused on executing its global growth strategy through continued client wins, product innovation, and regional scalability. The company is investing in enhancements to its proprietary booking and expense platforms, improving automation, user experience, and integration for global customers.

The share buy-back remains one lever in the company’s broader capital management toolkit and will operate alongside dividend distributions and selective growth investments. With travel demand rebounding and structural growth drivers intact, CTM is well positioned to deliver long-term value through both earnings’ growth and responsible capital returns.