Vail Resorts(MTN) - 2025 Q4 - Annual Results

Executive Summary & Highlights Vail Resorts reported increased fiscal 2025 net income and EBITDA despite lower skier visits, driven by pass revenue and efficiency, and outlined fiscal 2026 outlook Fiscal 2025 Performance Highlights Vail Resorts reported increased net income and Resort Reported EBITDA for fiscal 2025, despite a decline in total skier visits. The company achieved growth through increased season pass revenue and ancillary spend, supported by cost discipline and the resource efficiency transformation plan | Metric | Fiscal 2025 | Fiscal 2024 | | :-------------------------------- | :---------- | :---------- | | Net income attributable to Vail Resorts, Inc. | $280.0 million | $231.1 million | | Resort Reported EBITDA | $844.1 million | $825.1 million | - Resort Reported EBITDA grew 2% for fiscal 2025, despite a 3% decline in total skier visits across North American destination mountain resorts and regional ski areas[4] - Resort net revenue increased 3%, driven by a 4% increase in season pass revenue and increased ancillary spend per guest[4] - The company achieved $37 million in savings from the resource efficiency transformation plan before one-time costs[4] - Pass product sales through September 19, 2025, for the upcoming 2025/2026 North American ski season decreased approximately 3% in units and increased approximately 1% in sales dollars compared to the prior year period[3] Fiscal 2026 Outlook & Strategic Initiatives The company provided its fiscal 2026 outlook, expecting net income between $201 million and $276 million and Resort Reported EBITDA between $842 million and $898 million. Strategic initiatives include a quarterly cash dividend of $2.22 per share and share repurchases totaling $270 million for FY25. The company also completed a $500 million senior notes offering | Metric | Fiscal 2026 Outlook (Range) | | :-------------------------------- | :-------------------------- | | Net income attributable to Vail Resorts, Inc. | $201 million - $276 million | | Resort Reported EBITDA | $842 million - $898 million | - The Board of Directors declared a quarterly cash dividend of $2.22 per share, payable on October 27, 2025[5] - The company repurchased approximately 1.69 million shares for a total of $270 million during fiscal year 2025, representing 4.5% of shares outstanding[5] - Completed an offering of $500 million aggregate principal amount of 5.625% Senior Notes due 2030, with proceeds used for revolving credit facility repayment, share repurchases, and future repayment of Convertible Senior Notes due 2026[5] Operating Results Overview The Mountain segment saw revenue and EBITDA growth, while Lodging revenue remained flat with a slight EBITDA decrease. Real Estate EBITDA significantly increased due to property sales, contributing to overall resort revenue and EBITDA growth Mountain Segment Performance The Mountain segment saw a 3.4% increase in total net revenue for fiscal 2025, primarily driven by a 4.2% increase in lift revenue due to higher pass pricing and incremental revenue from Crans-Montana. Dining and other revenues also increased, while retail/rental revenue decreased. Mountain Reported EBITDA increased 2.4% | Metric | Fiscal 2025 | Fiscal 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Total Mountain net revenue | $2,629.873 million | $2,544.370 million | +3.4% | | Lift revenue | $1,503.187 million | $1,442.784 million | +4.2% | | Ski school revenue | $309.863 million | $304.548 million | +1.7% | | Dining revenue | $240.900 million | $227.572 million | +5.9% | | Retail/rental revenue | $302.450 million | $317.196 million | -4.6% | | Mountain Reported EBITDA | $821.341 million | $802.072 million | +2.4% | | Total skier visits | 17,665 thousand | 17,564 thousand | +0.6% | - The increase in lift revenue was primarily due to an increase in pass product revenue of 4.2%, driven by an increase in pass pricing for the 2024/2025 North American ski season[8] - Mountain segment results include one-time expenses of $14.9 million for resource efficiency transformation and $6.8 million for CEO transition in fiscal 2025[11] Lodging Segment Performance The Lodging segment's net revenue was approximately flat for fiscal 2025, with increased summer visitation and demand for summer lodging at North American resort properties offset by lower winter revenue from managed condominium rooms. Lodging Reported EBITDA decreased slightly by 1.0% | Metric | Fiscal 2025 | Fiscal 2024 | YoY Change | | :-------------------------- | :---------- | :---------- | :--------- | | Lodging net revenue (excluding payroll cost reimbursements) | $319.7 million | $319.830 million | ~0% | | Lodging Reported EBITDA | $22.795 million | $23.018 million | -1.0% | | Owned hotel RevPAR | $170.70 | $161.82 | +5.5% | | Managed condominium RevPAR | $116.70 | $118.91 | -1.9% | - The flat revenue was primarily due to increased summer visitation and demand, offset by lower revenue during winter at managed condominium rooms due to lower ADR during peak holiday periods and a net reduction in inventory[11] Real Estate Segment Performance The Real Estate segment experienced a significant increase in Reported EBITDA for fiscal 2025, primarily due to gains on the sale of real properties in East Vail and Breckenridge | Metric | Fiscal 2025 | Fiscal 2024 | | :----------------------- | :---------- | :---------- | | Real Estate Reported EBITDA | $18.626 million | $1.475 million | - The increase in Real Estate Reported EBITDA includes a gain on sale of real property for $16.5 million related to the East Vail property and $8.5 million related to the sale of three real estate parcels in Breckenridge, Colorado[13] Total Resort Performance Total Resort net revenue increased by 2.9% to $2,964.3 million for fiscal 2025. Resort Reported EBITDA increased by 2.3% to $844.1 million, despite one-time costs related to the resource efficiency transformation plan, CEO transition, and acquisition expenses | Metric | Fiscal 2025 | Fiscal 2024 | YoY Change | | :-------------------- | :---------- | :---------- | :--------- | | Total net revenue | $2,964.3 million | $2,885.191 million | +2.7% | | Resort net revenue | $2,963.9 million | $2,880.5 million | +2.9% | | Resort Reported EBITDA | $844.1 million | $825.090 million | +2.3% | - Resort Reported EBITDA for fiscal 2025 included $15.2 million of one-time costs for the resource efficiency transformation plan, $8.1 million for the CEO transition, and $1.2 million for acquisition and integration related expenses[11][12] Strategic Initiatives & Future Outlook The company is implementing a multi-year strategy to enhance guest engagement and pass programs, addressing below-expectation performance and limited pass sales growth, while also progressing on its resource efficiency plan and providing fiscal 2026 guidance Overall Business Performance & Strategy The CEO acknowledged that fiscal 2025 results were below expectations and pass sales growth was limited, attributing this to outdated guest engagement strategies and insufficient focus on lift ticket marketing. The company is committed to a multi-year strategy to leverage its competitive advantages, including enhancing lift ticket offerings, modernizing guest engagement through digital platforms, and optimizing the pass program for long-term loyalty and conversion - Performance for the past season was below expectations, and season-to-date pass sales growth has been limited, with projected guidance for fiscal year 2026 also reflecting this[14] - The company's guest engagement approach has not kept pace with shifting consumer behaviors, leading to a decline in email impact and a slow shift to new marketing channels[15] - New strategic priorities include rebuilding lift ticket visitation, evolving guest engagement to better reach and convert guests, and reaccelerating growth of the pass program[19] - Introduced Epic Friend Tickets for 2025/2026 Epic Pass holders to drive lift ticket sales for new guests and serve as a tool for future pass conversion[20][24]