Tourism Holdings Rentals (THL) H2 2026 earnings summary

Executive summary

• Underlying net profit after tax from continuing operations was $46.1 million, up 34% year-over-year, reflecting resilience despite disruptions from the Middle East conflict.

• Statutory NPAT from continuing operations reached $39.9 million, reversing a prior year loss of $14.1 million.

• Sale of services revenue (primarily rentals) increased 11% to $517.5 million, driven by fleet growth and improved RevPARV.

• Strategic initiatives included divestment of the UK & Ireland business for ~$57 million, closure of loss-making dealerships, and consolidation of manufacturing.

• Two non-binding takeover proposals are under Board consideration, ranging from $3.10 to $3.40 per share.

Financial highlights

• Underlying EBIT rose 17% to $105.4 million; underlying EBITDA up 14% to $222.4 million.

• Closing rental fleet increased 10% to 8,587 vehicles.

• Net operating cashflows rose 67% to $67.3 million.

• Net debt reduced to $436 million, with leverage (pre-IFRS 16) at 2.32x and equity ratio improved to 41%.

• Full-year dividend up 62% to 10.5 cps, with a final dividend of 7.5 cps (100% imputed, 10% franked).

Outlook and guidance

• FY27 earnings growth expected, though Q1 will be impacted by the lingering effects of the Middle East conflict.

• Core goal of $100 million underlying profit remains intact, with drivers such as rental growth, cost reductions, and expected RV market recovery.

• Recent booking intake in New Zealand up ~40%, Australia up ~15%, and U.S. up ~45% over prior year.

• Canada is on track for record rental revenue in the 2026 summer; U.S. bookings have improved but remain below prior years.

• Net debt is expected to trend toward $400 million over the next few years, subject to market conditions.