Travel + Leisure (TNL) Q4 2024 earnings summary

Executive summary

• Delivered $929 million Adjusted EBITDA for 2024, with strong momentum continuing into 2025.

• Net revenue reached $3.9 billion for 2024, with Q4 revenue at $971 million.

• Vacation ownership business led growth, with 8% tour growth and 7% increase in gross vacation ownership sales.

• Integration of Accor Vacation Club exceeded expectations, contributing above initial EBITDA projections.

• Strategic partnerships and multi-brand strategy, including Accor Vacation Club, supported performance.

Financial highlights

• Fourth quarter Adjusted EBITDA was $252 million, up 5% year-over-year; adjusted diluted EPS was $1.72.

• Full-year Adjusted EBITDA reached $929 million, with adjusted EPS at $5.75.

• Adjusted EBITDA margin for 2024 was 24%.

• Gross VOI sales totaled $2.3 billion for 2024, with Q4 gross VOI sales at $591 million.

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

Outlook and guidance

• 2025 Adjusted EBITDA guidance set at $955 million-$985 million.

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

• Board to consider increasing Q1 2025 dividend to $0.56 per share, a 12% increase.

• Adjusted Free Cash Flow conversion expected to exceed 50% in 2025.

• Effective income tax rate projected at 28%-30% for 2025.