Corporate Travel Management (ASX:CTD) soften guidance on tariff uncertainty

Corporate Travel Management (ASX:CTD) has pointed to tariffs when it comes to performance assumptions outside of Europe, prompting a FY25 revenue downgrade of 4%.

While tariffs were not the only factor highlighted (“broad economic…uncertainty” was also cited, though one is left to wonder what’s causing the uncertainty) the downgrade effectively represents a loss of -$30M.

“This outlook assumes the tariff uncertainty impacting March and April activity remains through the remainder of the financial year and there is no further deterioration to April client activity in May and June,” Corporate Travel wrote on Friday.

Europe, however, remains on-track for guidance. The latest European economic data released early this week shows that data beat Bloomberg estimates but that throughout CY2025, tariffs are likely to impact performance.

But when it comes to Trump’s trade policies, the Administration’s current enthusiasm for American economic independence – or isolationism – is taking a toll.

“[Outside of Europe,] broad economic and tariff uncertainty in North America and Asia has led to reductions in client activity resulting in slower growth than expected during what is traditionally the busiest period of the year,” CTD added.

A conference call in Sydney kicks off at 10am AEST on Friday to discuss the downgrade; FY26 forecasts will be included in the FY25 annual report.

Things aren’t all bad: a share buyback remains ongoing; client retention is clocked at 97% and nearly half of “new client wins” YTD came from Europe, where less impact is expected.

CTD last traded at $13.00/sh.

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