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Mar 31

Travel + Leisure Q1 2025 Earnings Report

Travel + Leisure reported a solid Q1 2025 performance with strong net income and growing vacation ownership revenue.

Key Takeaways

Travel + Leisure delivered a robust Q1 2025, driven by growth in its vacation ownership segment and enhanced guest engagement through digital platforms. The company achieved higher adjusted EBITDA and maintained strong shareholder returns.

Net income reached $73 million, with adjusted EPS at $1.11.

Vacation ownership revenue grew by 4% year-over-year.

Volume per guest (VPG) rose to $3,212, reflecting effective sales performance.

Returned $111 million to shareholders through dividends and repurchases.

Total Revenue
$934M
Previous year: $916M
+2.0%
EPS
$1.11
Previous year: $0.97
+14.4%
Gross VOI Sales
$512M
Previous year: $490M
+4.5%
Tours
153K
Previous year: 155K
-1.3%
Exchange Rev/Transaction
$353
Previous year: $350
+0.9%
Cash and Equivalents
$188M
Previous year: $479M
-60.8%
Free Cash Flow
$152M
Previous year: $22M
+590.9%
Total Assets
$6.76B
Previous year: $7.02B
-3.7%

Travel + Leisure

Travel + Leisure

Travel + Leisure Revenue by Segment

Forward Guidance

The company projects a strong Q2 2025, maintaining its full-year EBITDA guidance and expecting robust VOI sales.

Positive Outlook

  • Q2 adjusted EBITDA projected between $245M and $255M.
  • Full-year adjusted EBITDA guidance reaffirmed at $955M to $985M.
  • Expected summer travel demand to remain strong.
  • Anticipates continued growth in Club Wyndham and WorldMark.
  • Launch of Sports Illustrated Resorts expected to drive new revenue.

Challenges Ahead

  • Travel and Membership segment expected to be flat to down 2% for the year.
  • Exchange transactions remain soft due to club-affiliated members.
  • Tour count declined 1% year-over-year in Q1.
  • Continued provision for loan losses reflects cautious credit outlook.
  • Global uncertainties and economic headwinds could impact travel trends.