Amendment to FY25 Guidance and up to $200m Buyback
| Stock | Flight Centre Travel Group Ltd (FLT.ASX) |
|---|---|
| Release Time | 28 Apr 2025, 8:30 a.m. |
| Price Sensitive | Yes |
Flight Centre amends FY25 guidance, announces $200m buyback
- FY25 UPBT guidance revised to $300m-$335m, down from $365m-$405m
- Implementing cost-saving initiatives, including in Global Business Services
- Investing in growth opportunities in corporate, leisure and technology
Flight Centre Travel Group has amended its fiscal year 2025 (FY25) profit guidance and announced a $200 million on-market share buyback. The company now expects its FY25 underlying profit before tax (UPBT) to be between $300 million and $335 million, down from its initial target of $365 million to $405 million. This revision is due to uncertain trading conditions, including recent changes to United States trade and entry policies, which have impacted business and consumer confidence and corporate and leisure sales. While Flight Centre remains on track to deliver record total transaction value (TTV), the prospect of this uncertainty continuing into its busiest trading months (May-June) means the company is now unlikely to achieve its initial FY25 UPBT target. In response, Flight Centre is fast-tracking initiatives within its Global Business Services division to reduce costs, continuing productivity improvements and full-time employee reductions, and targeting a 15-20% capital expenditure reduction for FY26. The company is also investing in strategic initiatives expected to unlock more profitable growth, including in its corporate, leisure and technology businesses. Despite the short-term challenges, Flight Centre maintains a strong balance sheet and liquidity position, allowing it to invest in growth drivers, pursue acquisition opportunities, and undertake further capital management initiatives such as the announced $200 million share buyback.
FY25 underlying profit before tax (UPBT) expected to be $300 million to $335 million, down from initial target of $365 million to $405 million.
Flight Centre expects stronger overall results in FY26 and beyond as trading conditions stabilise and the company's strategies gain momentum. The company is maintaining cost discipline, implementing productivity-boosting initiatives, and investing in growth opportunities across its corporate, leisure and technology businesses.