Travel + Leisure(TNL) - 2025 Q4 - Annual Results

Financial Performance - Net revenue for Q4 2025 was $1.03 billion, with Gross VOI sales of $638 million, representing an 8% year-over-year increase[5] - Full-year 2025 net revenue reached $4.02 billion, with Gross VOI sales of $2.49 billion, also up 8% year-over-year[5] - Adjusted EBITDA for Q4 2025 was $272 million, while full-year Adjusted EBITDA was $990 million[5] - The company reported a net loss of $61 million for Q4 2025, including $210 million in inventory write-downs related to the Resort Optimization Initiative[5] - Adjusted EBITDA for Q4 2025 was $272 million, an 8% increase compared to $252 million in Q4 2024[34] - Adjusted net income for the year ended December 31, 2025, was $424 million, a 4% increase from $406 million in 2024[34] - Adjusted EBITDA for the year 2025 was $990 million, representing a margin of 24.6%, up from $929 million in 2024[41] - Net Income for 2025 was $230 million, a decline of 44% compared to $411 million in 2024[46] Future Projections - For 2026, the company expects Adjusted EBITDA to range from $1,030 million to $1,055 million, with Gross VOI sales projected between $2.5 billion and $2.6 billion[19] - The Resort Optimization Initiative is expected to yield meaningful annual savings, with a positive net impact on Adjusted EBITDA beginning in 2026[17] Shareholder Returns - The company plans to recommend a first quarter 2026 dividend of $0.60 per share, an increase from the previous dividend of $0.56 per share[16] - The company repurchased 1.4 million shares for $90 million in Q4 2025, and a total of 5.4 million shares for $300 million in the full year[15] Debt and Cash Position - As of December 31, 2025, the company had $3.47 billion in corporate debt and $253 million in cash and cash equivalents[11] - The company had a leverage ratio of under 3.1x as of December 31, 2025, indicating a stable financial position[11] - Average Corporate Debt slightly decreased to $3,471 million in 2025 from $3,522 million in 2024, a decline of approximately 1.5%[46] Revenue Segments - Vacation Ownership segment revenues increased by 8% to $875 million in Q4 2025 from $813 million in Q4 2024[34] - Total Vacation Ownership revenue for the year ended December 31, 2025, was $3.361 billion, up 6% from $3.171 billion in 2024[38] Cash Flow and Efficiency - The company reported a net cash provided by operating activities of $640 million for the year ended December 31, 2025, compared to $464 million for the year ended December 31, 2024[33] - Free cash flow for the year ended December 31, 2025, was $515 million, compared to $445 million in 2024[43] - The company achieved a net income cash flow conversion rate of 278% for the year 2025, compared to 113% in 2024[43] Member Metrics - Tours conducted in Q4 2025 totaled 184,000, a 5% increase from 175,000 in Q4 2024[38] - The average number of exchange members decreased by 2% to 3.299 million in Q4 2025 from 3.377 million in Q4 2024[38] - Average Number of Exchange Members represents the average number of paid members in vacation exchange programs during the reporting period[59] Asset and Liability Overview - Total assets as of December 31, 2025, were $6,760 million, slightly up from $6,735 million as of December 31, 2024[31] - Total liabilities rose to $7,742 million as of December 31, 2025, from $7,615 million as of December 31, 2024[31] - Cash and cash equivalents increased to $253 million as of December 31, 2025, compared to $167 million as of December 31, 2024[31] Profitability Metrics - Basic earnings per share from continuing operations for Q4 2025 was $(0.95), a decrease of 155% from $1.73 in Q4 2024[34] - Adjusted ROIC improved to 26% in 2025 from 25% in 2024, indicating enhanced efficiency in generating profits from capital investments[46] - Adjusted Net Operating Profit After Taxes (NOPAT) rose to $615 million in 2025, compared to $599 million in 2024, an increase of about 2.7%[46] - Adjusted EBIT increased to $866 million in 2025, up from $814 million in 2024, reflecting a growth of about 6.4%[46] - Taxes on Adjusted EBIT increased to $251 million in 2025 from $215 million in 2024, an increase of approximately 16.8%[46]