Travel + Leisure Raises 2026 EBITDA Outlook to $1.03–1.055B, Unveils $750M Buyback
Travel + Leisure reported Q4 revenue of $1.026 billion, adjusted EBITDA of $272 million and EPS of $1.83, closing 2025 with $4.02 billion revenue, $990 million EBITDA, $516 million free cash flow and 52% EBITDA conversion. Management guided 2026 adjusted EBITDA of $1.03–1.055 billion, gross VOI sales of $2.5–2.6 billion, a $750 million buyback and $0.60 Q1 dividend.
1. Q4 and Full-Year Results
Travel + Leisure delivered Q4 revenue of $1.026 billion, adjusted EBITDA of $272 million and EPS of $1.83. For full-year 2025 the company posted $4.02 billion in revenue, $990 million in adjusted EBITDA and $516 million in free cash flow, converting 52% of EBITDA into cash and ending the year with leverage below 3.1x.
2. 2026 Guidance and Capital Returns
Management projected 2026 adjusted EBITDA of $1.03 billion to $1.055 billion (4%–7% growth) and gross Vacation Ownership sales of $2.5 billion to $2.6 billion. The board authorized a new $750 million share repurchase program and announced a Q1 dividend of $0.60 per share, following $449 million returned to shareholders in 2025.
3. Resort Optimization Initiative
The company recorded a $216 million non-cash write-down tied to closures of 17 aging resorts under its Resort Optimization Initiative. Management expects the program to generate a net EBITDA benefit of $15 million to $25 million in 2026, factoring in $35 million of sales office headwinds, $15 million in fee reductions and $70 million in inventory cost savings.