Vail Resorts, Inc.

For fiscal third quarter 2026, resort revenue declined 7% year over year and resort EBITDA declined 9%, while lift revenue declined 5% despite visitation being down 15%. Management said North American pass sales increased 3% heading into the season, but overall winter visitation was sharply pressured, with pass visitation in North America down 17% and lift ticket visitation down 10%. For the full year, Vail Resorts now expects net income attributable to Vail Resorts of $128 million to $162 million and Resort reported EBITDA of $735 million to $755 million; cash taxes are now expected to be $75 million to $85 million. The company said liquidity ended the quarter at approximately $1.1 billion and net leverage was 3.5x trailing 12 months EBITDA. It also reaffirmed core capital spending of approximately $215 million to $220 million and total capital investments of $234 million to $239 million. Looking ahead, management said Epic Australia Pass units are up approximately 26% and dollars are up approximately 31% early for next season, and the resource efficiency plan is tracking to $106 million of annualized efficiencies by year-end, with an additional $30 million of savings expected in fiscal 2028.

Rob Katz emphasized that the season was unusually difficult because of historically adverse weather, including the worst snowfall season on record for several Rockies destination resorts. He said the company is encouraged by progress in marketing, lift-ticket strategy, and pass optimization, and believes its integrated network, owned-and-operated model, and data platform can drive a step-change in guest experience. Katz was notably confident that visitation should recover in a normal snow year, while acknowledging this season was an unprecedented anomaly.

Angela Korch focused on the numbers: Q3 resort revenue down 7%, resort EBITDA down 9%, and the full-year Resort reported EBITDA outlook lowered to $735 million to $755 million. She said cash taxes should be $75 million to $85 million, liquidity was about $1.1 billion, and net leverage was 3.5x trailing 12 months EBITDA. Korch also reiterated the resource efficiency plan is ahead of schedule at $106 million of annualized efficiencies, with $45 million of year-over-year benefits in fiscal 2026 before $13 million of one-time costs, and she confirmed capital spending plans of $215 million to $220 million in core capex and $234 million to $239 million in total investments.

Analysts pressed management on whether weak spring pass sales change next year’s planning, but Katz said there is no change to staffing or operating plans yet and that the company is planning for normal conditions next season. Questions also centered on the young adult pass, with management saying it is meaningfully outperforming other age groups but is more of a mitigator than a major driver of the year’s results. On lift-ticket growth and product mix, Katz said higher lift-ticket demand is plausible if more guests delay pass purchases, and that the new Epic Friend Tickets and super advanced lift tickets give the company more tools to capture demand later in the cycle.