Travel + Leisure Co. ( (TNL) ) has released its Q1 earnings. Here is a breakdown of the information Travel + Leisure Co. presented to its investors.
Travel + Leisure Co., a leading vacation ownership and membership travel company, offers a wide range of leisure travel experiences through its portfolio of brands, catering to the modern traveler. In its first quarter of 2025, Travel + Leisure Co. reported a net income of $73 million on net revenue of $934 million, with an adjusted EBITDA of $202 million. The company also highlighted a 6% increase in volume per guest year-over-year and returned $111 million to shareholders through dividends and share repurchases.
The company’s Vacation Ownership segment saw a 4% increase in revenue to $755 million, driven by a 6% rise in volume per guest, despite a slight decrease in tours. Adjusted EBITDA for this segment rose by 18% to $159 million. Conversely, the Travel and Membership segment experienced a 7% decline in revenue to $180 million, attributed to a decrease in transaction revenue due to lower exchange transactions, resulting in a 9% drop in adjusted EBITDA.
Travel + Leisure Co. maintained a strong balance sheet with a leverage ratio of 3.3x and closed a $350 million term securitization transaction. The company also renewed its timeshare receivables conduit facility, extending its term to 2027. Cash flow from operating activities increased significantly to $121 million, with adjusted free cash flow reaching $152 million, up from $22 million in the previous year.
Looking ahead, Travel + Leisure Co. expects a busy summer travel season and remains focused on expanding its multi-brand strategy. The company anticipates second-quarter adjusted EBITDA to range between $245 million and $255 million, reaffirming its full-year guidance of $955 million to $985 million. With positive momentum in bookings, the company is optimistic about meeting the leisure travel needs of its owners and guests.