Travel + Leisure Q4 Revenue Rises 5.7% to $1.03B, EPS $1.83, EBITDA $272M
Travel + Leisure posted Q4 revenue of $1.03B, up 5.7% year-over-year, with adjusted EPS of $1.83 and EBITDA of $272M, beating estimates and sparking a 7.8% gain. Vacation ownership sales grew 8% on a 6% rise in VPG and higher-quality guests (FICO >740, incomes >$100K) while removing 17 low-demand resorts.
1. Q4 Financial Performance
Travel + Leisure reported Q4 revenue of $1.03 billion, a 5.7% increase year-over-year, with adjusted EPS of $1.83 and adjusted EBITDA of $272 million. Despite a slight negative operating margin, shares jumped 7.8% on the earnings beat.
2. Vacation Ownership Growth
Vacation ownership business delivered 8% gross sales growth driven by a 6% rise in Volume Per Guest and peak tour flow in Q4. Management highlighted higher-quality demographics, with average FICO scores above 740 and household incomes exceeding $100,000, boosting recurring demand and cash flow.
3. Strategic Initiatives
The multi-brand strategy, featuring Sports Illustrated and Eddie Bauer offerings alongside Wyndham and WorldMark, aims to expand the addressable market. The Resort Optimization Initiative will phase out 17 low-demand resorts, replacing them with newer, high-demand properties to strengthen system-wide financial health.
4. 2026 Outlook
Management guided full-year 2026 adjusted EBITDA above analysts’ projections, reflecting confidence in sustainable cash flow growth and strategic investments across vacation ownership and resort portfolios.