American Express Global Business Travel, operated by Global Business Travel Group, Inc., has released its financial results for the fourth quarter and full year ending December 31, 2024. The company, a leading software and services provider for travel, expense, and meetings & events, showcased robust financial performance and continued momentum heading into 2025.

Financial Highlights

For the fourth quarter of 2024, American Express Global Business Travel reported revenue of $591 million, marking an 8% increase year-over-year. Adjusted EBITDA for the quarter was $110 million, up 39% from the previous year. For the full year, revenue reached $2,423 million, a 6% increase from 2023, while Adjusted EBITDA grew by 26% to $478 million. The company also achieved a significant margin expansion, with a full-year Adjusted EBITDA margin of 20%, up 310 basis points from the previous year.

Business and Operational Highlights

The company continued to gain market share and retain customers at high rates, with a full-year total new wins value of $2.8 billion, including $2.2 billion from small and medium-sized enterprises (SMEs). The customer retention rate stood at 97%, with a remarkable 99% retention rate in the Global & Multinational Enterprises (GMN) segment. Additionally, free cash flow for the year was $165 million, surpassing the initial guidance of $100 million.

Strategic Initiatives and Corporate Developments

American Express Global Business Travel made significant strides in optimizing shareholder returns. The Board of Directors authorized an additional share buyback of up to $300 million, and the company repurchased 8 million shares in a private buyback. The leverage ratio declined to 1.8x, and interest expenses were reduced, reflecting the company’s strong financial management.

Management’s Perspective

Paul Abbott, Chief Executive Officer of Amex GBT, commented, “We delivered on our financial targets for 2024 with a strong finish in the fourth quarter, thanks to consistent execution of our commercial strategy and focus on cost control. Our efficient financial model is demonstrating its ability to generate attractive double-digit earnings growth, by adding share gains on top of stable industry growth and then expanding margins with a scalable cost base.”

Future Outlook

Looking ahead to 2025, the company is guiding for 5%-7% constant currency revenue growth, driven by consistent growth in business travel and continued share gains from new wins and high customer retention. Adjusted EBITDA is expected to grow by 11%-17%, reaching between $530 million and $560 million, with an anticipated free cash flow exceeding $160 million.

SEC Filing: Global Business Travel Group, Inc. [ GBTG ] – 8-K – Feb. 27, 2025