Travel + Leisure Stock Earnings Reports

Travel + Leisure reported a strong start to 2026 with first quarter revenue of $961 million, adjusted EBITDA of $225 million and adjusted EPS of $1.45. Key operating highlights: gross VOI sales were $549 million (up 7% YoY), tour growth +5%, volume per guest (VPG) +3% to $3,321, and EBITDA margin expansion of ~180 bps. Management emphasized that results validate their strategy of owner satisfaction driving recurring demand and predictable cash flow. They returned $128 million to shareholders in Q1 (7% higher quarterly dividend to $0.60 and 1.2 million shares repurchased) while continuing to invest in multi-brand expansion and digital initiatives. Multi-brand progress: Margaritaville approaching $150M annual VOI sales, Accor Vacation Club expected to nearly double VOI sales in 2026, early momentum at Eddie Bauer Adventure Club (first resort opened in Moab), and Sports Illustrated rollouts underway — combined non-core brand sales expected to approach ~10% of mix in 2026. Resort optimization (closing a small number of aging, low-demand resorts) is delivering the expected expense savings and has not impaired overall sales. Credit: early-stage delinquencies have risen in recent vintages, but FICO scores remain healthy (avg >740), down payment rates are higher, percentage financed is lower, and management still expects the full-year provision rate to be modestly below prior year. Balance sheet and liquidity: leverage ~3.2x at quarter end, >$1B available liquidity, executed a $325M ABS at 5.1% coupon. Capital allocation: reaffirmed framework — maintain resilient balance sheet, regular dividend, opportunistic share repurchases, and selective M&A. Guidance reaffirmed for 2026: gross VOI sales $2.5–$2.6B; adjusted EBITDA $1.03–$1.055B; VPG $3,175–$3,275; convert roughly half of EBITDA to free cash flow; full-year adjusted tax rate ~29%; EPS growth in the teens. Risks called out: macro and geopolitical uncertainty (notably recent events) that could alter consumer behavior, plus the monitored early delinquency trends.