American Express Global Business Travel (NYSE:GBTG) reported a transformative fourth quarter on Monday, as the integration of recent acquisition CWT propelled revenue up 34% to $792 million.
The London-headquartered travel management giant successfully navigated a complex merger year, swinging to a full-year net profit of $111 million.
Despite the top-line surge, shares hit a 52-week low in intraday trading as investors weighed the heavy costs of integration against a more cautious free cash flow outlook.
The company’s fourth-quarter performance was defined by the first full quarter of consolidated results following the September 2025 close of the CWT acquisition.
Total Transaction Value (TTV) jumped 45% to $10 billion, while Travel Revenue alone grew 36%.
Even excluding the inorganic contribution from CWT, the core business maintained steady momentum with 8% revenue growth, supported by high customer retention and new wins in the small and medium enterprise (SME) sector.
On the bottom line, Amex GBT reported quarterly net income of $83 million, a significant turnaround from the $14 million loss in the same period last year.
This improvement was largely technical, driven by fair value movements on earnout liabilities.
For the full year, the company achieved a critical milestone of GAAP profitability, posting $111 million in net income compared to a $134 million loss in 2024.
However, the rapid expansion came with a surge in operating expenses, which rose 36% to $763 million.
The company is currently managing a massive "cost transformation" initiative, having already actioned $37 million in general cost benefits and $5 million in direct CWT synergies.
Management remains confident in achieving a total of $155 million in annual run-rate synergies by 2028.
Free cash flow proved to be a point of pressure, totaling just $13 million for the quarter—a 66% decline year-over-year.
The drop reflects the heavy cash requirements for restructuring and integration, alongside increased capital expenditures for the company’s AI-driven software platforms.
Despite this, the board signaled its confidence by increasing the share repurchase authorization to $600 million.
Looking ahead to 2026, CEO Paul Abbott reiterated guidance for 19% to 21% revenue growth and adjusted EBITDA between $615 million and $645 million.