Travel + Leisure Q2 revenue tops estimates, outlook raised

Overview

• US leisure travel firm's Q2 revenue rose 4%, beating analyst expectations

• Adjusted EPS for Q2 grew 14% but missed consensus estimates

• Company raised full-year adjusted EBITDA guidance and repurchased $88 mln in shares

Outlook

• Travel + Leisure boosts 2026 full-year Adjusted EBITDA guidance to $1.065 bln-$1.085 bln

• Company sees 2026 gross VOI sales of $2.6 bln-$2.675 bln

• Travel + Leisure expects Q3 Adjusted EBITDA of $275 mln-$285 mln

Result Drivers

• VACATION OWNERSHIP GROWTH - Revenue rose 6% and net vacation ownership interest sales increased 11%, driven by higher volume per guest and more tours

• COST SAVINGS - Expense savings from resort optimization initiative contributed to higher segment EBITDA

• MEMBERSHIP REVENUE DECLINE - Travel and Membership revenue fell 5% due to a 12% decrease in revenue per transaction, partly offset by higher transaction volume

Company press release: ID:nBw845Wq2a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Travel + Leisure Co is $87.00, about 18.6% above its July 21 closing price of $73.35

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)