Travel + Leisure Raises Midpoint Of EBITDA Outlook As Timeshare Sales Climb 6%, Exchange Unit Slides
Adjusted earnings per share rose 23% in the third quarter, while the exchange and travel club segment's revenue fell 11%.
Travel + Leisure, the timeshare and leisure travel company, said Tuesday that adjusted earnings per share climbed 23% to $2.21 in the third quarter on stronger timeshare sales, and it raised the midpoint of its full-year adjusted EBITDA forecast. Revenue at its exchange and travel club segment fell 11%.
Timeshare growth carries the quarter
Net revenue was $1.10 billion, net income $108 million and diluted earnings per share $1.73, the company said in an 8-K for the three months ended September 30. Adjusted EBITDA, its preferred earnings measure before interest, taxes and certain costs, rose 6% to $283 million.
Vacation Ownership revenue rose 9% to $953 million. Gross timeshare sales grew 6% to $720 million on 7% more tours, while volume per guest slipped 1%, which the company attributed to the mix from recent acquisitions.
"Our owners continue to prioritize travel, demand remains healthy," said Michael D. Brown, President & CEO.
Exchange and travel clubs shrink
Travel and Membership revenue fell 11% to $150 million, driven mainly by a $17 million drop in transaction revenue. Adjusted EBITDA for the segment fell 12% to $51 million. The company said exchange members with club affiliations transact less often.
The company, which sells timeshares under brands such as Club Wyndham, WorldMark and Margaritaville Vacation Club and runs the RCI exchange network, also reported nine-month operating cash flow of $388 million, down from $516 million a year earlier.
New guidance and a 3.3x leverage ratio
The 2026 outlook calls for adjusted EBITDA of $1.070 billion to $1.085 billion, gross timeshare sales of $2.625 billion to $2.675 billion and volume per guest of $3,325 to $3,375.
Leverage for covenant purposes was 3.3x at September 30, up after funding the Yes& Vacations and Spinnaker Resorts acquisitions that closed in the quarter. The company had $4.0 billion of corporate debt. It returned $364 million to shareholders year to date through buybacks and dividends.
A strategic review begun in 2025 identified 17 resorts needing heavy owner reinvestment or sitting in markets that no longer match demand. The company expects a positive net effect on 2026 adjusted EBITDA, after $27 million of write-downs and impairments in nine months, and lists failure to win court approvals as a risk.
Management will recommend a fourth-quarter dividend of $0.60 per share to the board in November.
Sources
- 8-K Filing — Travel & Leisure Co. (TNL) — SEC EDGAR
- Exhibit tnl3q26earningsrelease.htm — Travel & Leisure Co. 8-K exhibit — SEC EDGAR
- Vacation Lodging Breaking News and Press Releases — businesswire.com
