Overview

• US leisure travel provider's Q1 revenue slightly beat analyst expectations, adjusted EPS beat estimates

• Company repurchased $87 mln in shares and paid $41 mln in dividends in Q1

• Resort optimization initiative led to $19 mln in inventory write-downs and impairments

Outlook

• Travel + Leisure sees Q2 adjusted EBITDA of $260 mln to $270 mln

• Company reaffirms 2026 adjusted EBITDA guidance of $1.03 bln to $1.055 bln

• Travel + Leisure expects 2026 gross VOI sales of $2.5 bln to $2.6 bln

Result Drivers

• VACATION OWNERSHIP GROWTH - Higher tour volumes and increased volume per guest drove 6% revenue growth and 7% rise in gross VOI sales in Vacation Ownership segment

• RESORT OPTIMIZATION INITIATIVE - Expense savings from resort optimization contributed to higher Vacation Ownership adjusted EBITDA, though the initiative also led to $19 mln in inventory write-downs and impairments

• TRAVEL AND MEMBERSHIP WEAKNESS - Revenue in Travel and Membership segment fell 8% due to a decrease in transaction revenue from lower revenue per transaction and a higher mix of lower-margin travel club transactions

Company press release: ID:nBw7gHYg6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$961 mln	$957.06 mln (11 Analysts)
Q1 Adjusted EPS	Beat	$1.45	$1.30 (12 Analysts)
Q1 EPS		$1.22
Q1 Net Income		$79 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "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 $86.50, about 13.6% above its April 21 closing price of $76.15

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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