Travel + Leisure Co.

Travel + Leisure reported second-quarter revenue of $1.06 billion and EBITDA of $269 million. Gross VOI sales increased 6% to $693 million, segment revenue in Vacation Ownership rose 6% to $907 million, and segment EBITDA increased 13% to $247 million. Management said enterprise revenue grew 4%, EBITDA grew 8%, EPS grew 14%, and EBITDA margin expanded 70 basis points; in the first half, EPS was up 21% year over year. For the full year, the company now expects gross VOI sales of $2.6 billion-$2.675 billion, EBITDA of $1.065 billion-$1.085 billion, third-quarter gross VOI sales of $700 million-$740 million, third-quarter EBITDA of $275 million-$285 million, and VPG of $3,300-$3,350. It also expects the acquisitions of Yes& Vacations and Spinnaker Resorts to contribute $15 million-$20 million of incremental EBITDA in 2026, consolidated loan loss provision of approximately 21%, adjusted tax rate of about 29%, free cash flow conversion of roughly half of EBITDA, and year-over-year EPS growth of approximately 20%.

Michael Brown’s tone was confident and expansionary. He framed the quarter as evidence of durable execution, saying the business model is benefiting from healthy owner trends, strong travel demand, recurring upgrade sales, and disciplined capital allocation. He also emphasized strategic growth levers: resort optimization, a multi-brand push, digital tools like the Margaritaville app, and the newly announced acquisitions, which he said broaden the resort network, increase the owner base by more than 10%, and create more future upgrade opportunities.

Erik Hoag focused on operating leverage, cash generation, and capital return. He highlighted $1.06 billion of revenue, $269 million of EBITDA, 70 basis points of EBITDA margin expansion, and the fact that first-half EPS was up 21%; he also noted that the company repurchased about $88 million of stock in the quarter and had returned $253 million to shareholders through dividends and buybacks in the first half. On the balance sheet, he said leverage was below 3.2x, liquidity exceeded $1.2 billion, and the company completed a $300 million ABS transaction at a 98% advance rate and 5.52% coupon. For the acquisitions, he said the company is investing about $340 million, securitizing roughly $80 million of finance receivables, and ending up with about $260 million of net capital deployed for a net investment multiple of approximately 5x EBITDA; he also said buybacks should remain at a similar level in 2026 as in 2025.

Analysts pressed on consumer health, loan-loss trends, acquisition rationale, and synergies. Management said the consumer remains “committed to vacations,” with booking patterns, length of stay, distance traveled, and forward bookings still strong and no sign of weakening. On credit, Erik said early-stage delinquencies improved roughly 80 basis points sequentially from Q1, point-of-sale underwriting remains disciplined with FICOs in the 740 range, and the acquired portfolios add some pressure to the consolidated provision rate in 2026, though he expects the long-term provision trend to settle in the upper teens. On the deals, management said the acquisitions were chosen for attractive economics, white-space resort destinations like Maui and Hilton Head, and the chance to migrate roughly 100,000 owners onto a points-based system over time, with some integration and revenue synergies expected to take several years.