American Express Global Business Travel (Amex GBT), operated by Global Business Travel Group, Inc., has released its financial results for the first quarter of 2025, showcasing robust profit growth and significant margin expansion. The company, a leading provider of travel, expense, and meetings & events software and services, continues to demonstrate resilience and strategic growth in a challenging economic environment.
Financial Highlights
Amex GBT reported a revenue increase of 2% year-over-year, reaching $621 million. On a constant currency, workday adjusted basis, revenue grew by 4%. Adjusted EBITDA saw a notable rise of 15% year-over-year, amounting to $141 million. Free Cash Flow also improved by 9% year-over-year, totaling $26 million. The company achieved an adjusted EBITDA margin expansion of 260 basis points, reaching 23%.
Business and Operational Highlights
The company experienced a 3% growth in total transaction value (TTV), which amounted to $8.35 billion. Travel revenue increased by 2% to $499 million, while product and professional services revenue grew by 3% to $122 million. The company also reported a 96% customer retention rate over the last twelve months, with new wins valued at $3.2 billion, including $2.3 billion from small and medium-sized enterprises (SMEs).
Strategic Initiatives and Corporate Developments
Amex GBT has made significant strides in capital allocation, reducing its leverage ratio to 1.7x and receiving two credit rating upgrades. The company announced an amended merger agreement for the acquisition of CWT, reducing the stock consideration from approximately 72 million shares to 50 million shares. Additionally, Amex GBT has a $300 million share buyback program in place, reflecting a strong and flexible balance sheet.
Management’s Perspective
Paul Abbott, CEO of Amex GBT, expressed satisfaction with the company’s performance, highlighting strong profit growth, margin expansion, and cash generation. He emphasized the positive impact of investments in software and services on share gains and productivity improvements. Karen Williams, CFO, noted the company’s focus on margins and the effectiveness of their transformation playbook in navigating uncertain environments.
Future Outlook
In light of a more uncertain economic environment, Amex GBT has updated its guidance for the full year 2025. The company now expects revenue between $2.38 billion and $2.48 billion, adjusted EBITDA between $480 million and $540 million, and free cash flow between $120 million and $160 million. For Q2 2025, the company anticipates revenue between $615 million and $635 million, with adjusted EBITDA ranging from $125 million to $135 million.
SEC Filing: Global Business Travel Group, Inc. [ GBTG ] – 8-K – May. 06, 2025
