American Express Global Business Travel posted better-than-expected financial results in the second quarter of 2025, as the TMC prepares to finally complete its merger with rival CWT.

The final major hurdle to Amex GBT¡¯s takeover of CWT was removed last week when the US Department of Justice (DOJ) dropped its lawsuit against the merger of the two global TMCs. The $540 million transaction, which was first announced in March 2024, should now be finalised within the third quarter.

During the second quarter, Amex GBT recorded a 1 per cent year-on-year rise in revenue to $631 million, as total transaction value (TTV) increased by 2 per cent to $7.89 billion, while the number of transactions was flat compared with Q2 of 2024.

Despite the increase in revenue, the TMC saw operating profit drop by 21 per cent year-on-year to $34 million for the quarter, which the company attributed to ¡°higher operating expenses primarily due to restructuring charges¡±.

Paul Abbott, Amex GBT¡¯s CEO, said: "In the second quarter, we again delivered on our commitments. We delivered quarterly results ahead of expectations, raised our full-year guidance, reached a significant milestone on CWT and can now accelerate share repurchases to underscore our confidence in the business.¡±

The company highlighted ¡°continued share gains and strong customer retention¡±, with wins of new clients adding up to sales worth $3.2 billion over the past 12 months up to 30 June, including $2.2 billion from SME customers. It also achieved a customer retention rate of 95 per cent over the same period.

Amex GBT also raised its financial guidance for 2025, including higher year-on-year revenue growth of 2-4 per cent, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is now expected to be between $505 million and $540 million, up from a range of $480-$540 million in May.

In a conference call with investors, Abbott said that the TMC had seen a ¡°stabilisation in May and June in the macroeconomic environment¡±, which had given companies more confidence to plan. This was after uncertainty had reached its ¡°height¡± in April when the US announced sweeping tariffs and there were revisions to GDP numbers.

¡°We¡¯re pleased with the trends we¡¯ve seen in July ¨C it¡¯s encouraging to see stronger volumes in July,¡± said Abbott, who added that September would be a key month as it traditionally accounts for around 40 per cent of volumes in the third quarter.

Abbott also highlighted the differences between industries more directly affected by tariffs, with sectors such as automotive, consumer goods, and mining, oil and energy seeing slower growth than less-impacted industries, including IT, pharma and healthcare, and professional services.

When asked about the CWT merger, Abbott said he was unable to provide any details on CWT¡¯s financial performance until the deal closes. But he added he was ¡°very confident¡± that Amex GBT could achieve the original estimate of $155 million in synergies within three years following the acquisition.

¡°We look forward to welcoming CWT customers and employees to Amex GBT in the third quarter and are incredibly excited about the growth prospects for the combined company," said Abbott.

Karen Williams, Amex GBT's chief financial officer, added: "We are ready to integrate CWT after the expected close in the third quarter, and our balance sheet will maintain flexibility to pursue our capital allocation priorities, accelerate share repurchases and maximise shareholder value."