Global Business Travel (GBTG) - Q3 2025 Earnings Call
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Call Details
Call Title: American Express Global Business Travel Q3 2025 Earnings Call
Date held: November 10, 2025
Management team members present:
Paul Abbott, Chief Executive Officer
Karen Williams, Chief Financial Officer
Jennifer Purrington, Vice President of Investor Relations
Eric Bach, Chief Legal Officer and Global Head of M&A
Call Summary
Financial Performance
The third quarter delivered “outstanding results,” with total transaction value (TTV) growing by 23% to $9.5 billion, largely driven by the acquisition of CWT and strong growth in the core business.
Revenue increased by 13% year-over-year, reaching $674 million, where travel revenue grew 10% due to TTV growth and favorable foreign exchange impacts.
Adjusted EBITDA grew 9% to $128 million, underscoring effective margin management and operational efficiency despite the CWT acquisition impacting margins in the near term.
The adjusted gross profit margin was reported at 60%, which eased slightly due to the dilution from CWT but signified ongoing strength in the core business.
Karen Williams stated that “core revenue growth of 3% was very much in line with our expectations for the quarter,” reflecting the stability of the underlying business.
Free cash flow declined to $38 million compared to previous year metrics, mainly impacted by CWT integration costs, yet adjusted free cash flow from core business was $54 million.
The company reported a leverage ratio of 1.9 times against net debt and adjusted EBITDA, indicating a strong balance sheet to support future growth strategies.
Guidance
The financial outlook for full year 2025 has been raised to project revenues of $2.705 billion to $2.725 billion and adjusted EBITDA of $523 million to $533 million, reflecting the integration of CWT.
Expectations for free cash flow are set between $90 million and $110 million, although the adjusted figures without CWT suggest a core cash flow of approximately $210 million.
For 2026, preliminary forecasts suggest a revenue growth between 19 to 21% and adjusted EBITDA of $615 million to $645 million, indicating optimism about continued business expansion.
Paul Abbott commented on the solid customer retention rates and anticipated growth, stating, “we are cautiously optimistic about a slight uptick in organic growth in 2026.”
Capital Allocation
Through November 6, 2025, the company returned $54 million to shareholders via share repurchases, reinforcing commitment to capital returns.
The overall capital allocation strategy focuses on balancing shareholder returns while investing in growth areas, with plans for further opportunistic M&A.
Karen reiterated that “with such a strong balance sheet, we are in a position to continue executing on our capital allocation priorities.”
The strategic integration of CWT is expected to streamline operations and enhance cost savings, aiding in delivering $155 million in identified synergies.
Macro & Demand Trends
The overall demand environment showed signs of improvement, with business travel volumes recovering as evidenced by substantial increases in TTV.
Abbott noted, “the most recent survey showed either the same or moderate improvements in terms of travel budgets for 2026” among customers.
The company has observed a significant “double-digit increase in the number of forward bookings for meetings and events,” which bodes well for future revenue generation.
The core business segment reported 9% growth, signifying a return to pre-pandemic demand levels in several areas.
AI Trends
The company is leveraging AI technology to increase revenue and enhance customer experiences, with initiatives leading to a “23% reduction in the need for human intervention in chats.”
AI integration within the Agencia platform has been a driving force behind operational efficiencies, with AI-powered features resulting in significant cost savings.
Paul Abbott stated, “AI is delivering results, increasing revenue, conversion, and productivity,” showcasing the business’s commitment to staying competitive.
Future product developments, such as the integration of AI capabilities with SAP Concur’s services, are positioned to offer substantial benefits in streamlining travel and expense solutions.
Competition
The competitive landscape remains strong with significant opportunities to capture market share in the SME segment, bolstered by new partnerships and advanced technology.
The strategic alliance with SAP Concur aims not only to expand the user base but also to enhance service offerings, directly targeting the competitive aspects of T&E solutions.
Abbott expressed confidence in their ability to “create a more integrated experience for the user,” directly aimed at competing with other technology-driven travel service providers.
NOTABLE QUOTES:
“In the third quarter, we delivered outstanding results.”
“Our strong performance has enabled us to return $54 million to shareholders through share buybacks.”
“This is a highly accretive transaction with a 3.5 times multiple on synergies alone.”
“AI is delivering results, increasing revenue, conversion, and productivity.”
“The most recent survey that we did showed either the same or moderate improvements in terms of the travel budgets for 2026.”
“We have an unrivaled value proposition for SMEs, savings, control, and service.”
“We expect to deliver approximately 155 million in net cost synergies over the next three years.”
“Adjusted gross profit margin was 60% in the quarter, down modestly due to the impact of CWT.”
“With such a strong balance sheet, we are in a position to continue executing on our capital allocation priorities.”
“Looking at the savings that we’re delivering to customers as well will be an important metric to track.”
Q&A SUMMARY:
Q: Lee Horowitz (Deutsche Bank), Regarding the 2026 outlook, what are you hearing from customers about corporate spending?
A: Paul Abbott responded that recent surveys indicated “moderate improvements in terms of travel budgets for 2026,” with positive feedback regarding booked events and an increase in organic growth.
Q: Duane Fenigworth (Evercore ISI), Can you comment on the current macro environment for business travel?
A: Paul Abbott noted an observed improvement in demand post-Q3, with expectations for better organic growth rates “into Q4” while recognizing the impacts that economic conditions on travel performance had previously.
Q: James Puzo (Rothschild & Co. Redburn), What metrics will you monitor with the SAP Concur integration?
A: Paul Abbott indicated they would track growth rates, customer retention, and the delivery of content and savings, leading to improvements in overall service experience.
Q: Tony Kaplan (Morgan Stanley), Are you embedding AI cost savings in your preliminary 2026 expectations?
A: Karen Williams mentioned those expectations are based on current assessments of margin improvements and ongoing synergies from CWT while being open to exceeding targets if additional efficiencies from AI are realized.
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