- Travel + Leisure Co. (TNL, Financial) reported Q1 2025 net income of $73 million, translating to a diluted EPS of $1.07.
- Adjusted EBITDA grew to $202 million, with a volume per guest (VPG) increase of 6% year-over-year to $3,212.
- TNL reaffirmed its full-year adjusted EBITDA guidance, projecting between $955 million to $985 million.
Travel + Leisure Co. (TNL), a leading vacation ownership and membership travel company, announced its financial results for the first quarter of 2025. The company reported a net income of $73 million, which corresponds to $1.07 in diluted earnings per share, on a net revenue of $934 million. The company's adjusted EBITDA reached $202 million, aligning with the higher end of its guidance range. The performance was driven by a robust vacation ownership business, marked by a 6% increase in volume per guest (VPG) to $3,212 year-over-year.
The company anticipates second-quarter adjusted EBITDA ranging from $245 million to $255 million, affirming its full-year guidance of $955 million to $985 million. TNL returned $111 million to its shareholders through dividends of $41 million and share repurchases amounting to $70 million.
In its business segments, the Vacation Ownership revenue increased by 4% to $755 million, while adjusted EBITDA rose by 18% to $159 million. In contrast, the Travel and Membership segment saw a 7% decrease in revenue to $180 million, and adjusted EBITDA fell by 9% to $68 million, attributed to a decline in exchange transactions.
On the financial front, as of March 31, 2025, TNL's net cash from operating activities saw a significant increase to $121 million from $47 million in the previous year. The company also extended its USD timeshare receivables conduit facility to August 2027, expanding its borrowing capacity to $600 million.
Looking forward, TNL remains focused on executing its multi-brand strategy and exploring new opportunities to bolster its business with prominent brands like Club Wyndham, WorldMark, and Sports Illustrated Resorts. The company foresees a bustling summer travel season as leisure travel demand continues to show positive momentum.
