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

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$1.06 bln	$1.04 bln (11 Analysts)
Q2 Adjusted EPS	Miss	$1.88	$1.89 (12 Analysts)
Q2 Net Income		$109 mln

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

Reuters Recommended Reads

• July 22 - India's Mahindra Holidays swings to quarterly loss on mounting costs

• July 20 - Monarch Casino Q2 revenue slightly beats estimates on growth in casino, F&B, hotel segments

• July 20 - AMC posts surprise profit as summer blockbusters boost US box office

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.