Corporate Travel Management Ltd (ASX: CTD) shares are taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $13.00. In morning trade on Friday, shares are changing hands for $11.54 apiece, down 11.2%.
For some context, the ASX 200 is up 0.2% at this same time.
Here's what's grabbing investor interest.
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Corporate Travel shares sink on earnings downgrade
United States President Donald Trump's tariff campaign is impacting businesses across the world.
And Corporate Travels shares are no exception.
In an update released this morning, the company downgraded its full-year FY 2025 revenue forecast by approximately 4%.
Management said the decline in expected revenue will result in earnings before interest, taxes, depreciation and amortisation (EBITDA) coming in around $30 million less than the prior guidance presented at Corporate Travel's first-half results briefing on 19 February.
The company stated:
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.
Corporate Travel shares are under pressure, with management lowering its rest of world ex-Europe (RoW) revenue growth to be approximately 5% higher than FY 2024. The year-on-year EBITDA growth forecast is now 10%.
The company noted that the growth figures it previously announced for its European business remain on track.
Highlighting the strength of the European market, management said new client wins year to date have surpassed total transaction value (TTV) of $1.6 billion, with around half of that value generated in Europe.
"This is significantly above our annual target of $1.0 billion and is expected to be a positive contributor to the FY 2026 group metrics previously released to the market in February 2025," they said, adding that client retention remains on track at 97%.
But the ASX 200 travel stock isn't getting much relief today, despite management citing strong year-to-date cash flow that's in line with the full-year cash conversion of 80% to 90% that the company provided in February.
The Corporate Travel share buyback program is also ongoing, with some 5.8 million shares repurchased for $78.2 million since inception. This has reduced the total shares on issue to around 140.5 million.
Unfortunately, the outlook on the tariff front and the potential impact on Corporate Travel's operations remains uncertain.
According to the company:
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.
With today's big intraday fall factored in, Corporate Travel shares are down 13% in 2025.
