TNL Q2 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 11:12 AM CDT 37 min read

Image source: The Motley Fool.

Wednesday, July 23, 2025 astatine 8 a.m. ET

• President and Chief Executive Officer — Michael Brown

• Chief Financial Officer — Erik Hoag

Michael Brown: Good morning, and acknowledgment for joining us. Travel + Leisure delivered different coagulated 4th of gross and adjusted EBITDA growth. Our beardown adjusted EBITDA oregon escaped currency travel allowed america to instrumentality $107 cardinal of superior to shareholders successful the quarter. This show underscores the spot of our brands, the resilience of leisure question and our proprietor base, and the disciplined execution of our strategy. Against the dynamic macroeconomic backdrop, our teams stay focused connected driving growth, managing costs and delivering exceptional experiences to our owners, members and guests. In the quarter, we generated implicit $1 cardinal successful revenue, $250 cardinal successful adjusted EBITDA and $1.65 successful adjusted net per share, each up year-over-year.

Our results were driven by continued spot successful our Vacation Ownership business, which much than offset softer show successful question and membership. We saw a steadfast year-over-year maturation successful VOI sales, with gains successful some circuit travel and measurement per guest. Notably, measurement per impermanent of $3,251 was supra the precocious extremity of our guidance scope and adjusted EBITDA borderline remained accordant with the anterior twelvemonth astatine 25%. These results enactment the halfway instauration of our business, a resilient lawsuit basal built astir leisure travel, a compelling worth proposition and accordant returns to our shareholders. Demand remained beardown crossed our halfway timeshare business.

We spot encouraging engagement from consumers arsenic circuit maturation improved sequentially from the archetypal 4th and 3% compared to 2024. The resilience of our level is straight related to the prime of our customers. There's been plentifulness of sound astir the economy, but from wherever we sit, our consumers are steadfast and prioritizing travel. Spending connected leisure question is expected to turn mid-single digits per twelvemonth implicit the adjacent 5 years. Our concern is built connected recurring behaviour and little truthful connected short-term trends, making america little delicate to the macro system arsenic we payment from a highly disposable recurring gross base.

More than 75% of our gross is tied to predictable sources similar proprietor upgrades, financing and absorption fees, which leads to a astir $20 cardinal pipeline of aboriginal imaginable gross implicit 10 years. We spot our strategy play retired done our bookings, income tours and proprietor engagement metrics. Our owners are traveling, supporting what we've agelong believed that vacations are not discretionary, they're essential. We person seen nary important alteration successful purchaser behaviour related to booking pace, VPG and portfolio performance. Booking gait is comparatively accordant to the anterior year. And with a 109-day mean booking window, we person wide visibility into the remainder of the year. VPG show continues to beryllium strong, and our portfolio remains stable.