Travel + Leisure (TNL) investor relations material

Executive summary

• Achieved strong 2025 results, exceeding expectations in revenue, EBITDA, and EPS, with momentum carrying into 2026.

• Delivered net revenue of $1.03 billion in Q4 2025 and $4.02 billion for the full year, with gross VOI sales up 8% year-over-year in both periods.

• Q4 2025 net loss of $61 million due to $210 million in inventory write-downs and impairments; full-year net income was $230 million, including $216 million in similar charges.

• Returned $449 million to shareholders via dividends and buybacks, with a new $750 million repurchase authorization approved.

• Advanced brand expansion, launched new partnerships, and invested in digital capabilities, supporting long-term growth.

Financial highlights

• 2025 revenue grew 4% year-over-year to $4.02 billion; EBITDA up 7% to $990 million; EPS up 10% to $6.34.

• Q4 revenue was $1.026 billion, EBITDA $272 million, and EPS $1.83; Q4 EBITDA grew 8% year-over-year.

• Full-year 2025 gross VOI sales reached $2.49 billion, up 8% year-over-year, with 6% VPG growth and 3% tour growth.

• Free cash flow for 2025 was $516 million, up 16% year-over-year; 52% of EBITDA converted to free cash flow.

• Adjusted EBITDA margin was 26.5% in Q4 and 24.6% for the year.

Outlook and guidance

• 2026 EBITDA expected at $1.03–$1.055 billion, up 4–7% year-over-year.

• Gross VOI sales projected to rise 1–5% to $2.5–$2.6 billion; underlying growth would be 5–9% excluding sales office closures.

• EPS growth expected in the teens, driven by EBITDA growth, lower interest expense, and share repurchases.

• Q1 2026 guidance: gross VOI sales of $520–$540 million, EBITDA of $210–$220 million.

• Management will recommend a Q1 2026 dividend increase to $0.60 per share.