Transcript: Travel+Leisure Q2 2026 Earnings Conference Call

Travel+Leisure (NYSE: TNL ) reported second-quarter financial results on Wednesday. The transcript from the company's second-quarter earnings call has been provided below. This content is powered APIs. 06 billion and EBITDA of $269 million, marking a 4% and 8% increase respectively.

Earnings per share grew 21% year over year. The company announced two strategic acquisitions: Yes Ann Vacations and Spinnaker Resorts, adding 23 resorts and over 100,000 owners, expected to contribute $15 to $20 million of incremental EBITDA in 2026. Travel+Leisure raised its full-year guidance for EBITDA, Vacation Ownership, Sales, and BPG based on stronger-than-expected performance and contributions from recent acquisitions. Operational highlights include a 6% increase in gross VOI sales, with new owner sales and owner upgrades driving growth.

The multi-brand strategy continues to scale with brands like Margaritaville and Sports Illustrated Resorts. Management emphasized the company's focus on capital allocation, maintaining a strong balance sheet, and shareholder returns through dividends and share repurchases. Full Transcript OPERATOR Greetings and welcome to Travel+Leisure Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andrew Burns, Vice President, Investor Relations.

Please go ahead. Andrew Burns, Vice President, Investor Relations Thank you, Donna. Good morning everyone. Before we begin, I'd like to remind you that our discussion today will include forward-looking statements.

Actual results could differ materially from those indicated in the forward-looking statements, and the forward-looking statements made today are effective only as of today. We undertake no obligation to publicly update or revise these statements. The factors that could cause actual results to differ are discussed in our SEC filings. In our press release accompanying this earnings call, you can also find a reconciliation of non-GAAP financial measures discussed today in the earnings press release available on our Investor Relations website.

Please note that all references to EBITDA, net income, earnings per share, and free cash flow made during this call are on an adjusted basis as disclosed in our earnings press release today. Additionally, all references to earnings per share are on a diluted basis. This morning Michael Brown, our President and Chief Executive Officer, will provide an overview of our results and our longer-term growth strategy, and then Erik Hoag, our Chief Financial Officer, will provide greater detail on our results, capital allocation strategy, and outlook for 2026. Following our prepared remarks, we'll open the call up for questions.

Finally, all comparisons today are to the same period of the prior year unless specifically stated. With that, I'll turn the call over to Mike. Michael Brown, Chief Executive Officer Good morning, and thank you for joining us. Our strong second quarter and first half results demonstrate consistent execution and the durability of our business model.

Healthy owner trends and robust travel demand translated into recurring upgrade sales, increasing new owner sales, predictable cash flow, and meaningful capital returns. I want to thank our associates across Travel+Leisure for delivering the exceptional vacation experiences that are the foundation of our success. The sustained momentum we have in our business is clearly reflected in first half results. Revenue growth combined with EBITDA margin improvement and our shareholder-friendly capital allocation approach fueled compounding growth across the P&L.

Gross VOI sales, the core engine that drives multiple predictable revenue streams, increased 7%. EBITDA grew 9%, fueled by a 120 basis point improvement in EBITDA margin. Earnings per share were up 21% year over year as share repurchases amplified per-share economics. Through the first half of the year, we've returned $253 million to shareholders through dividends and share repurchases.

We've been able to reduce our common shares outstanding by 4%, reflecting our ongoing commitment to disciplined capital allocation. 06 billion and EBITDA of $269 million. Gross VOI sales increased 6% and were above our guidance range, supported by high-quality tours and strong owner engagement. Volume per guest also exceeded plan at $3,318, up 2% year over year.

Our consumer remains healthy and continues to prioritize travel. First half arrivals, adjusted for strategic resort closures, increased year over year and forward bookings give us clear visibility into continued growth in the second half. Key booking metrics also remained strong. The booking window was 109 days and average length of stay was 4 days, both at or above prior-year levels.

Together, these trends reflect the health of our owner base and the value proposition of our products. Overall, this second half visibility combined with our strong first half performance gives us the confidence to raise our full-year EBITDA, Vacation Ownership, Sales, and BPG outlook. Our updated guidance also reflects the expected accretion from the acquisitions of yes Ann Vacations and Spinnaker Resorts, which we announced last week. These acquisitions add high-quality resorts in high-demand vacation destinations, increase our owner base, and are immediately accretive to earnings.

Let me share with you the strategic benefits in more detail. These acquisi