Vail Resorts, Inc.

Fourth-quarter resort net revenue was about flat year over year, with Australia weather weighing on results. Full-year fiscal 2026 total lift revenue decreased 3.5% despite a 30% decline in skier visitation, supported by 4% growth in pass revenue. Fiscal 2026 resort reported EBITDA was $746 million. Through Sept. 18, pass units declined 12%, days sold declined 10%, and sales dollars, including tax, were down 6%. For fiscal 2027, Vail guided to net income attributable to Vail Resorts of $158 million to $233 million and resort reported EBITDA of $805 million to $865 million, including about $14 million of one-time costs. Management also said fiscal 2027 cash taxes are expected to be approximately $75 million to $85 million, total liquidity was about $0.8 billion at July 31, net leverage was 3.9x trailing 12 months reported EBITDA, and leverage is expected to decline to about 3.5x by year-end assuming no change in net debt. The board declared a quarterly dividend of $2.22 per share. Management expects FY27 visitation to recover meaningfully from FY26 but still not fully return to FY25 U.S. levels, with lift ticket visitation expected to recapture a meaningful portion of lower pass visitation. They said fiscal 2027 also includes about 4% labor and expense inflation, about $20 million of incremental incentive compensation normalization, about $10 million of incremental marketing, $3 million tied to the Grand Teton Lodging Company renewal, $3 million of incremental resource-efficiency one-time costs, and about $25 million of incremental efficiency savings.

Rob Katz emphasized that fiscal 2026 showed the resilience of the model even in an exceptionally challenging weather year. He framed the company’s response as a deliberate acceleration of change: stronger marketing, product and pricing changes, an expanded resource-efficiency program, and the new Epic Experience strategy aimed at making the guest journey more seamless, personalized, and differentiated. His tone was confident but candid, repeatedly acknowledging weak pass sales, weather risk, and disappointing stock performance while arguing that Vail is positioned to take share and improve long term.

Angela Korch focused on the bridge from FY26 to FY27 and the drivers of the guidance. She said the company expects about 4% blended labor and expense inflation, plus roughly $20 million of incentive-comp normalization, $10 million of incremental marketing, $3 million for the Grand Teton Lodging Company contract, and $3 million of transformation one-time costs, partly offset by about $25 million of incremental efficiency savings. She also highlighted FY26 EBITDA of $746 million, the $0.8 billion liquidity position, 3.9x leverage, expected 3.5x leverage by year-end, and positive free cash flow even at the low end of FY27 guidance while funding the capital plan and dividend.

Analysts focused on how Vail can guide to FY27 growth with pass sales still down. Management said the key assumption is that many lower-frequency guests are delaying decisions rather than abandoning skiing, and that some demand may shift from passes to lift tickets or be recaptured in-season; they also said ancillary growth should come from capture initiatives in rental, ski school, dining and other businesses. Questions also probed AI, pricing, capital spending, international demand, Australia, and Deer Valley competition. Katz said AI is part of the transformation plan and could improve internal efficiency and eventually guest support, while Korch said core CapEx plans are not changing structurally and leverage/cash flow remain manageable.