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GBTG Q1 2025 Earnings Report
American Express Global Business Travel reported strong profit growth and margin expansion in Q1 2025, with revenue increasing by 2% and Adjusted EBITDA growing by 15%.
Key Takeaways
American Express Global Business Travel (Amex GBT) delivered strong financial results in the first quarter of 2025, with revenue growing 2% year over year to $621 million and Adjusted EBITDA increasing 15% to $141 million. The company also achieved significant margin expansion and continued share gains, while lowering its leverage ratio.
Revenue increased by 2% year over year to $621 million, or 4% on a constant currency, workday adjusted basis.
Adjusted EBITDA grew by 15% year over year to $141 million, with Adjusted EBITDA margin expanding by 260 bps.
Net income was $75 million, a significant increase from a net loss of $19 million in the prior year period.
The company lowered its leverage ratio to 1.7x and maintained a strong and flexible balance sheet with a $300 million share buyback program in place.
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GBTG Revenue by Segment
Revenue by Segment
Travel Revenue
CapyFin.comProduct & Prof. Services Revenue
CapyFin.com Forward Guidance
Amex GBT is updating its full-year 2025 guidance due to a more uncertain economic environment, bringing the midpoint of Adjusted EBITDA down by 6% and the upper end largely in line with the previous midpoint. Strong Adjusted EBITDA margin expansion is still expected.
Positive Outlook
- Continued strong Adjusted EBITDA margin expansion is expected.
- Increasing cost actions are planned to reach approximately $110 million.
- The company plans to continue investing in its business.
- Neutral foreign exchange impact is assumed for the full year.
- The guidance does not incorporate the impact of the pending acquisition of CWT Holdings, LLC.
Challenges Ahead
- The guidance reflects a more uncertain economic environment.
- The midpoint of Adjusted EBITDA guidance for the full-year 2025 is down by 6% from previous midpoint.
- Current conditions are expected to continue, leading to flat total Transaction Growth.
- Organic Transaction Growth is expected to be 2% offset by 2ppts growth from new wins.
- The guidance is subject to various material assumptions and risks, including future industry performance and economic conditions.