TNL · Travel + Leisure Co.

Travel + Leisure Co. delivered a strong start to 2026, with first quarter results exceeding internal plans driven by robust performance in the Vacation Ownership segment. Net revenue rose 3% year-over-year to $961 million, while Adjusted EBITDA grew 11% to $225 million. The Vacation Ownership segment was the primary growth engine, with revenue increasing 6% to $798 million and segment Adjusted EBITDA surging 20% to $191 million. This performance was fueled by a 7% increase in Gross VOI sales to $549 million, supported by a 5% rise in tour volume and a 3% improvement in Volume Per Guest (VPG) to $3,321. Management highlighted the success of its multi-brand strategy, noting robust growth in Margaritaville Vacation Club and Eddie Bauer Adventure Club, alongside the announcement of a fourth Sports Illustrated Resorts location in Baton Rouge. The resort optimization initiative, launched in 2025, contributed to expense savings, partially offset by $19 million in inventory write-downs and impairments during the quarter. Conversely, the Travel and Membership segment faced headwinds, with revenue declining 8% to $165 million and Adjusted EBITDA falling 13% to $59 million, attributed to a shift in mix toward lower-margin travel club transactions and a 10% decrease in revenue per transaction. The company maintained active capital return efforts, deploying $128 million to shareholders through dividends and share repurchases. Looking forward, management reaffirmed its full-year 2026 Adjusted EBITDA guidance of $1,030 million to $1,055 million and introduced second quarter guidance for Adjusted EBITDA in the range of $260 million to $270 million.