Why has Corporate Travel (ASX: CTD) plunged ~80%?
After more than 12-months one of the biggest corporate governance stories on the ASX in years resumed trading today with CTD plunging a whopping ~80%, despite FY26 numbers pointing to a genuine operational turnaround, with the margin recovery across ANZ and Europe particularly encouraging:
- Operational recovery: FY26 revenue rose 5% to $665.9m, while underlying EBITDA jumped 36% to $113.6m, a meaningful improvement in margins and underlying performance.
- Back in the black: NPAT recovered to $17.7m from a $348.5m loss in FY25, which was heavily impacted by impairments and remediation costs.
However, this remains a special situation: the governance issues have proved more extensive than first thought, the board and management framework have undergone significant change, and todays weak return to trading was likely being driven as much by pent-up liquidity and sentiment as fundamentals.
The stock opened down ~80% but we’d prefer to see the initial volatility settle and review the fully audited accounts before considering investing in the company but at least investors can finally get out now if they wish.
