Travel + Leisure (TNL) Q4 2024 earnings summary

Executive summary

• Delivered $929 million Adjusted EBITDA for 2024, with strong momentum into 2025, driven by vacation ownership growth and successful Accor Vacation Club integration.

• Net income for 2024 was $411 million (EPS $5.82), with $3.9 billion in revenue and robust cash returns to shareholders.

• Over $2.5 billion has been returned to shareholders since 2018 through dividends and share repurchases.

• The company maintains a resilient, recurring revenue model, with over 75% of revenues predictable or recurring and high owner retention.

• Strategic partnerships and multi-brand strategy, including Accor Vacation Club and Sports Illustrated Resorts, support future growth.

Financial highlights

• Full-year 2024 net revenue was $3.9 billion, Adjusted EBITDA $929 million, and adjusted EPS $5.75.

• Q4 Adjusted EBITDA was $252 million (up 5% YoY), with a 26% margin; Q4 net income was $119 million (EPS $1.72).

• Gross VOI sales reached $2.3 billion for 2024, with VPG at $3,094, above guidance.

• Adjusted free cash flow for 2024 was $446 million, with a 48% conversion from Adjusted EBITDA.

• $377 million was returned to shareholders in 2024, including a 7% reduction in shares outstanding.

Outlook and guidance

• 2025 Adjusted EBITDA guidance: $955 million–$985 million; Q1 2025 guidance: $195 million–$205 million.

• Gross VOI sales expected at $2.4 billion–$2.5 billion; VPG guidance $3,050–$3,150.

• Travel and Membership Adjusted EBITDA expected to be flat to up 2% in 2025.

• Board to consider increasing Q1 2025 dividend to $0.56 per share.

• Effective income tax rate for 2025 expected at 28%–30%.