Travel plus Leisure TNL Earnings Call Transcript

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Wednesday, February 18, 2026 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Michael D. Brown

• Chief Financial Officer — Erik B. Hoag

Michael Brown: Our results bespeak sustained momentum successful our halfway abrogation ownership concern and repeatable execution crossed the enterprise. Our 4th fourth adjusted EBITDA exceeded the afloat twelvemonth outlook which we raised successful Q3. 2025 was an fantabulous year, and we are disconnected to a beardown commencement successful 2026. So I privation to convey our associates crossed Travel + Leisure Co. for their hard enactment and dedication, which drives our success. In summation to beardown fiscal show during the year, we precocious our marque enlargement strategy, activated caller partnerships, and continued to put successful our integer roadmap. These initiatives fortify the instauration of the concern and presumption america for semipermanent profitable growth.

At the halfway of our strategy is simply a wide absorption connected delivering exceptional abrogation experiences for our owners and members. What differentiates Travel + Leisure Co. is that we person proprietor engagement into recurring demand, predictable currency flow, and accordant superior return. We negociate the exemplary extremity to extremity to present shareholder worth that compounds implicit time. Since the 2018 spin, we person returned implicit $2.9 cardinal to shareholders, reduced our stock number by astir one-third, and grown the dividend by much than 35%. As we participate 2026, leisure request remains strong. We person momentum successful our abrogation ownership concern and wide enactment of show to different twelvemonth of maturation and shareholder worth creation.

At the aforesaid time, we are advancing our marque enlargement strategy and strategically optimizing our edifice portfolio, gathering the instauration for sustainable, profitable maturation that extends acold beyond this year. In 2025, we generated 4% gross maturation and 7% EBITDA growth. Revenue maturation combined with EBITDA borderline betterment and our shareholder-friendly superior allocation attack fueled compounding maturation crossed the P&L. We returned $449 cardinal to shareholders done dividends and stock repurchases, reflecting our ongoing committedness to disciplined superior allocation. These results underscore the spot and resilience of our operating model. 2025 fiscal show was led by our abrogation ownership business, which is built astir a large, loyal proprietor basal with highly recurring demand.

Performance is driven little by short-term question trends and much by these semipermanent proprietor relationships and our intentional attack to operating the business. For the year, beardown income and selling execution drove 8% gross abrogation ownership income growth. VPG was up 6%, supra the precocious extremity of our guidance range, and circuit travel maturation steadily improved passim the year, including 5% maturation successful the 4th quarter. Q4 represented our fastest year-over-year circuit maturation successful 2025. In our Travel and Membership segment, we delivered $228 cardinal of EBITDA for the year, demonstrating the profitability and cash-generating strengths of the business. We stay focused connected precise choky outgo absorption arsenic we actively mitigate the interaction of speech headwinds.