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ORLANDO - Travel + Leisure Co. (NYSE:TNL) reported third-quarter earnings that exceeded analyst expectations on Wednesday. The company raised its full-year outlook amid strong vacation ownership performance.
TNL’s shares were up 3.84% in pre-market trading after the announcement.
The leisure travel company posted adjusted earnings of $1.80 per share, surpassing the analyst consensus of $1.74. Revenue reached $1.04 billion, slightly above estimates of $1.03 billion and up 5% from the same period last year.
"Travel + Leisure Co. delivered another exceptional quarter, exceeding the high end of our Adjusted EBITDA guidance and achieving our 18th consecutive quarter with a VPG above $3,000," said Michael D. Brown, President and CEO of Travel + Leisure Co.
The company’s Vacation Ownership segment drove much of the growth, with revenue increasing 6% YoY to $876 million. Net vacation ownership interest sales rose 9%, while gross VOI sales jumped 13%, fueled by a 10% increase in volume per guest (VPG) to $3,304 and a 2% increase in tours.
Adjusted EBITDA climbed 10% to $266 million, with margins expanding to 25.5% from 24.4% in the prior-year period. The company returned $106 million to shareholders through $36 million in dividends and $70 million in share repurchases during the quarter.
Based on the strong performance, Travel + Leisure raised its full-year 2025 guidance, increasing the midpoint of its Adjusted EBITDA forecast to $975 million, with a new range of $965 million to $985 million. The company also raised its outlook for gross VOI sales to $2.45-$2.50 billion and VPG to $3,250-$3,275.
The Travel and Membership segment saw more modest growth, with revenue up 1% to $169 million, as a 12% increase in transactions was partially offset by an 8% decrease in revenue per transaction.
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